Kenya’s largest bank by assets, KCB Group has sent home about 28 staff in its Rwandan subsidiary saying this was to align with their current business environment and taking into account that delivery of their banking services is gearing more towards technology.
In response to Business Daily questions, the bank said it was reviewing all its operations keeping in mind the recently signed bill to cap interest rates and the growing uptake of technology in the banking industry but did not disclose the number of workers who will be affected in Kenya and across the group.
“The review is an ongoing process that has also seen us relook our workforce in keeping with the best business practice in an industry that is undergoing a major transformation driven by fast evolving technology changes, and a dynamic regulatory regime…The process is being handled in accordance with the laws and once the exercise is completed, a formal communication will be shared,” KCB noted in a response to Business Daily .
The looming job cuts makes KCB Group the ninth bank to announce retrenchment in a bid to focus on digital banking in the era of controlled interest rates on loans and deposits.
Other Kenyan lenders that have announced the same include; Bank of Africa Group-Kenya, Standard Chartered, Ecobank, Family Bank, Sidian, NIC, National Bank, and First Community Bank.
KCB said the staff restructuring is “an effort to improve efficiency, serve our customers better, and meet the expectations of our shareholders.”
