NAIROBI, Kenya, Feb 22 – Kenya Commercial Bank (KCB) Group has announced that it will be lying off some of its staff owing to a tough business environment and technological changes.
While declining to get the exact number of staff who will go home, the bank states that the process will be carried out in accordance with the law.
The move follows announcement by five Kenyan banks to lay off workers last year.
Among the banks include Standard Chartered Bank who relocated its Shared Service Centre to India, affecting 300 jobs.
Other banks include Community Bank, Family Bank, Eco-Bank and Sidian bank who announced early retirement programmes affecting nearly 600 jobs last year.
Kenya’s banking sector is facing tough times as tight laws continue eat up banks’ interest margins.
The latest law capping Interest Rates at 4 percent above Central Banks’ lending rate will negatively affect the economy according to experts.
International Monetary Fund has already warned that the interest Rates controls in Kenya are likely to reduce access to credit and weigh down on growth.
