NAIROBI, Kenya, Oct 3 – Family Bank has announced a voluntary early retirement program for its staff who are on permanent and pensionable terms.
Family Bank Managing Director and Chief Executive David Thuku says this is one aspect of the wider transformation program that the bank launched in June this year.
He says the program was necessitated by assessment of its business model, with a focus on deploying capital efficiently to improve overall performance and growth of the bank.
“The bank has been remodelling its business through this program to position itself for the emerging opportunities in the market. It is intended for staff that may already be considering early retirement and is not driven by a predetermined target number,” Thuku said.
The program is entirely elective and shall be closed on October 14, 2016.
“Family Bank is a major player in the Kenyan financial services industry with a vast network of 93 branches countrywide. Its resilience and stability is clearly demonstrated through its 32 year existence,” he added.
The banking sector is facing numerous challenges with the latest being the interest rates cap at 4 percent central banks’ rate.
Analysts have predicted the cap will reduce profitability for banks.
According to Renaissance Capital, the impact on profitability will only start to feed through 2017 as banks have already benefitted from the three quarters of higher net interest margins in 2016.