StanChart Kenya to Cut 200 Jobs as Virus Crisis Hits Profits

StanChart Kenya to Cut 200 Jobs as Virus Crisis Hits Profits

Standard Chartered Bank Kenya says it will shed 200 jobs by the end of the year as the coronavirus pandemic hits the economy.

The job losses translate to 14.3 percent of its 1,397 workforce in line with its strategy of improving asset quality and a drive for efficiency on digital platforms that was initiated in 2016.

“In the circumstance, the bank intends to declare redundant the employees whose roles fall off as a result of the restructuring. The impacted employees who are both in management and unionisable cadre are 200 in the retail banking, corporate banking, operations, technology and support departments,” the lender wrote to the Banking Insurance & Finance Union.

Business Daily reports that the lender spent KSh1 billion to compensate a total of 190 employees who had been made redundant by its automation programme between 2017 and 2019.

According to StanChart Kenya’s financial results for the year ended December 2019, over 70 digital services and products are offered on its mobile app, over 85% of transactions were conducted through non-branch channels in Retail Banking, and close to 90% of the corporate clients are utilizing Its Straight2Bank platform.

Its half-year ended June 30, 2020  profit declined by 31%  to Ksh3.2 billion compared to Ksh4.7 billion posted in the same period the previous year.  

Consequently, the bank did not declare an interim dividend and opted to conserve cash due to the uncertain business climate as Earnings Per Share (EPS) reduced to Ksh9.17 in H1 2020 from Ksh13.46.

NCBA Group has also announced its intention to lay off an unknown number of employees by December.