NAIROBI, Kenya, Nov 16 – 300 staff at Standard Chartered Bank risk losing their jobs following the decision by the bank to migrate its Shared Service Centre operations based in Nairobi to its Global Shared Services Centre in Chennai, India.
The firms’ Managing Director Lamin Manjang says the migration of the Shared Service Centre from Nairobi is in line with the decision made at Group level to centralize all Shared Service Centre operations globally into the three Global Shared Service Centres based in India, Malaysia and China.
The Shared Service Centre in Nairobi provides operations services to several Standard Chartered Bank subsidiaries including Botswana, Zambia, Uganda, Tanzania, South Africa and Kenya.
He says phase one of the migration will see shared services in the five countries excluding Kenya move to Channai.
“Efforts are ongoing to absorb some of the staff into other areas within the Bank. For those that will not be redeployed, a redundancy exercise will be carried out in line with local labour laws,” he says.
Manjang notes that the relocation of the centre operations will enable clients in Africa to enjoy the benefits of centralized processing in a world class processing facility.
“Standard Chartered Bank’s commitment to Africa and Kenya in particular remains very strong. The Group has made substantial investments in Africa in the last year, and Africa is now at the front of the queue for future investments,” he added.
This is the third Bank to announce staff redundancy after Family Bank’s voluntary retirement programme and Sidian Bank’s decision to lay off 108 staff.
Analysts foresee tough times for Kenyan banks, owing to digital strategies as well as the passing of the Banking Amendment Bill, forcing financial institutions to pursue a technology driven strategy to lower costs.