This archive report was first published on 23 August 2021.
On August 23, 2021, the Kenya Bankers Association (KBA) announced a seven percent salary increase for bank employees, effective September, following the signing of a new collective bargaining agreement (CBA).
The agreement, which benefits over 20,000 unionisable employees in the industry, includes a four percent backdated raise to March 2020 and a three percent backdated raise to March 2021.
This pay rise is a significant boost for bank workers, who faced a freeze on salary increases last year due to the economic impact of the Covid-19 pandemic.
Some lenders responded to the pandemic by closing branches, laying off staff, and shifting to digital services to reduce costs.
According to the Central Bank of Kenya (CBK), banks took a Sh46 billion hit on their pre-tax earnings last year, but have since made a record Sh96.4 billion profit before tax in the first half of 2021, supported by ongoing economic recovery.
"We are pleased with the outcome of the union negotiations," said Habil Olaka, KBA chief executive. "Bank employees have been essential workers throughout this pandemic, and we thank them for their personal sacrifice and commitment to deliver uninterrupted services to the banking public."
