88 Stanbic employees jobless after bank’s voluntary retirement plan

Stanbic Bank has accepted the voluntary retirement of 88 of its staff members under its ongoing rationalization plan which is embedded on cost-cutting.

The move brings the bank’s employee base to 1,000 following the submission of Voluntary Early Retirement (VER) applications between late July and August 9.

The non-coercive dismissals are part of a strategy to reorganise the bank’s functions towards digital operations.

“The digital transformation agenda plays a critical role in redesigning the entire operations of the Bank, through innovation of products, services and channels,” said Stanbic Bank in a statement to media houses on Thursday.

“As a result, the employee skills base as well as organisation structure of the Bank are expected to transform to mirror that strategy”

It is unclear on whether the lender will try to squeeze out more positions given earlier media reports of a targeted 255 job cuts under VER.

Stanbic layoffs represent part of an all-rounded banking sector efficiency quest.

This is anchored on the thinning of operational costs as lenders tighten their belts to keep growth on a positive trajectory.

Last Thursday, the bank announced an improved return of Ksh.4.1 billion within the six-month review period.

Commercial banks have linked the industry’s obsession with cost-cutting initiatives to an ongoing deplorable operating environment.

This is defined largely by the continued stay of the interest-rate cap regime.

According to the Kenya Bankers Association (KBA), banks have yielded an estimated 5,000 jobs under pent pressure on growing margins.