This archive report was first published on 16 July 2020.
NCBA Bank, the third-largest bank in Kenya, has made a significant move by permanently closing 14 branches across the country. The decision comes as the bank seeks to cut operational costs amid the ongoing COVID-19 pandemic.
Initially, the bank had announced the temporary closure of some of its branches in early April, but it has now decided to permanently shut down a total of 14 branches. Eight of these branches were previously operated by NIC, while six were operated by CBA before the two banks merged to form NCBA.
According to a statement by the bank, the decision to permanently close the branches was made after careful consideration. The bank had initially announced the temporary closure of eight branches on April 1, 2020, in response to the COVID-19 pandemic.
It is worth noting that the bank's decision to permanently close the branches may lead to job losses for redundant employees. However, it is unclear at this point whether the new development will result in job losses.
It is also worth mentioning that the bank has adopted aggressive cost-cutting measures, including the recent acquisition of a car yard to cater for mechanical repairs of vehicles it intends to auction from loan defaulters.
On a related note, the Competition Authority of Kenya had approved the merger of NIC and CBA last year, on condition that none of the employees of the merged entity would be declared redundant within 12 months of closing the transaction in Kenya.
