First Com­mu­nity Bank says it plans to send home undi­closed num­ber of staff in two weeks

The Star (Kenya) - - News Business -

First Com­mu­nity Bank, the small-sized Shari­ah­com­pli­ant lender, plans to lay off an undis­closed num­ber of staff in two weeks, its CEO Fazal Saib said in a leaked in­ter­nal memo last Fri­day. The bank joins a grow­ing num­ber of lenders who have re­sorted to job cuts to man­age costs amid dwin­dling profit mar­gins fol­low­ing the en­force­ment of Bank­ing (Amend­ment) Act 2016 in Septem­ber, which has capped in­ter­est at 14 per cent. Oth­ers are Equity which plans to re­trench at least 400 this year, Sid­ian Bank (108) and Fam­ily Bank which is yet to dis­close the num­ber of em­ploy­ees it is re­trench­ing. “In the last 18 months, we have seen many changes in the bank­ing in­dus­try. Most re­cently the Bank­ing (amend­ment) Act was signed into law,” the memo reads in part. Saib­said the bank has hired undis­closed ex­ter­nal con­sul­tant to “re­view and iden­tify ar­eas where staff re­duc­tions can be made with­out hurt­ing the bank’s op­er­a­tions” fol­low­ing three months of con­sul­ta­tions be­tween top man­age­ment and the board.

/ FILE

First Com­mu­nity Bank chief ex­ec­u­tive Fazal Saib

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