NAIROBI, Kenya, Oct 23 – Brokerage firm CfC Stanbic Financial Services has announced the closure of four branches in a restructuring exercise that will see 40 staff members retrenched.
Managing Director Nkoregamba Mwebesa said Naivasha, Nakuru, Eldoret and Kisumu branches would be closed effective December 31 as they move to implement the exercise that will also see the broking activity shift from being carried out on the branch network model and shift to agencies and the internet.
“This restructuring is driven by reduced market activity, which has seen turnover and commission income on the Nairobi Stock Exchange (NSE) drop by 75 percent,” explained Mr Mwebesa in a statement.
The last day for the four branches to receive business will be November 15.
The declining performance in the first half of the year at the bourse saw CfC Stanbic Financial Services record a Sh51 million loss compared to a profit of Sh55.8 million posted in the corresponding period last year.
The move will also result in the retrenchment of up to 40 staff members from the affected branches as well as at the head office in Nairobi, Mr Mwebesa added.
CSFS will retain its Mombasa and Nairobi branches.
“The decision to lay off staff is a painful one for any organisation but it was inevitable due to the shrinking business at the NSE, coupled with the slowdown of the economy which has been a big challenge to the broking industry this year,” he said.
The MD assured that CSFS was taking steps to ensure that clients were not disrupted by the exercise as they seek to invest and trade on the NSE.
“We are contacting all clients in these four branches and offering them the option of dealing with the 21 agents we have in these areas, agents who we believe will continue offering the expected standard of service”, said Mr Mwebesa adding that they would also have the option of trading through the internet.