This archive report was first published on 29 July 2019.
Stanbic Bank is set to lay off up to 200 employees under an early retirement scheme aimed at reducing payroll costs.
The employees were given two weeks to consider the voluntary retirement plan, citing digitization as the main reason for the job cuts.
According to the plan, eligible employees will receive an ex-gratia payment calculated at 1.5 months' salary for each completed year of service, in addition to pay in lieu of notice and compensation for unused leave days.
Those who opt for the layoff plan will also receive a 25% rebate on outstanding staff loans settled immediately upon exit, with the option to remain on the bank's medical scheme until the end of the year.
Stanbic Bank's employee costs rose by 3% in 2018 to Sh5.595 billion, but the lender cut its staff costs by 5.3% in the first quarter of this year to Sh1.417 billion.
The bank has been reporting strong profit growth in the past two reporting cycles, driven by higher interest income and non-interest earnings.
On July 29, 2019, the bank's management had not responded to queries on further details of the early retirement plan, including the cost to the bank.
