This archive report was first published on 10 September 2019.
Kenya Commercial Bank's (KCB) plan to fire National Bank of Kenya (NBK) employees after the merger of the two lenders has been halted by the Competition Authority.
On September 10, 2019, the Competition Authority gave at least 90% of NBK workers an 18-month lifeline, stating that it is in line with global best practices.
The decision comes after KCB announced plans to carry out an organizational restructure that would result in job losses for some NBK employees.
Earlier, the National Bank and KCB merger deal received final approval from the Central Bank of Kenya and the Capital Markets Authority, paving the way for the merger of the two banks.
According to KCB, the transition period will serve to 'streamline human resources, systems, processes and procedures' to realize efficiency and productivity synergies.
However, the Competition Authority has put a caveat on the planned downsizing exercise by KCB, saying at least 90% of the merged entity's workforce should not be relieved of their duties for a period of 18 months.
