The banking sector is seemingly going through difficult economic times caused by the Covid-19 pandemic, forcing most to engage in cost-cutting measures.
Among the most common cost-cutting measures include closure of some branches and retrenchment of employees, or even reducing their salaries.
SBM Bank (formerly Fidelity Commercial Bank Limited) has become the latest in the market to announce cost-cutting measures by shutting down five branches, leading to loss of jobs.
Among the branches targeted include Ngara, Dagoretti Express, Lunga Lunga Branch, Jomvu Express, and Mombasa Moi Avenue Branch.
According to a notice dated November 12, Ngara, Dagoretti Express, Lunga Lunga, and Jomvu Express branches will close on December 12, 2020, while Mombasa Moi Avenue will close on December 30, 2020.
“This closure does not affect availability of our services on the alternate channels; Mobile banking, Internet banking, Agency Banking and Card business,” the notice read in part.
The move by SMB comes barely three weeks after the NCBA Bank announced plans to retrench a number of employees as a result of difficult economic times.
In a statement to the employees, Group Managing Director John Gachora said that the redundancy will be done through voluntary basis (Voluntary Exit Program) of forced exits (Redundancy Program).
In May, NCBA shut down 14 branches countrywide following a merger between the NIC Bank and CBA.
Recently, the Standard Chartered Bank Kenya announced plans to lay off 200 employees in a restructuring move.
According to a brief sent to the Banking Insurance & Finance Union, the targeted staffers are those in the management level and the unionisable staff.