National Bank of Kenya offers early retirement to 150 employees aged over 35

On the surface, the latest National Bank of Kenya offer for early retirement is a typical package aimed at avoiding layoffs.

The offer, targeting 150 employees applies to those aged above 35 and have served the bank for a period of at least 5 years.

In a statement, the bank said its board had approved the program aimed at improving efficiency while reducing costs. However, they did nor disclose what the financial impact of the program would be.

“The voluntary early retirement (VER) scheme targeting 150 employees follows a similar one the bank implemented in 2014, which saw 200 employees leave the bank under early retirement plan.” the bank said in a statement.

The lender says the scheme offers a severance pay equivalent to one (1) month’s salary for each completed year of service, however for applicants aged 50 years and above, the severance pay will be at the rate of two (2) month’s salary for each full year remaining to the retirement age of 60.

The bank will also offer to the successful applicants a one month salary in lieu of notice, purchase of leave days earned but not taken up to the last day of employment, and pension benefits in accordance with NBK Pension Scheme and Retirement Benefits Authority rules.

The process is expected to be concluded in the coming week and employees who accept the offer will be released from the bank’s employment effective 1st February 2018.

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