, NAIROBI, Kenya, Jan 30 – National Bank of Kenya (NBK) targets to lay off 150 workers through a voluntary early retirement targeting staff over 35 years and who have worked at the bank for more than five years.
The retirement package will see the exiting staff paid an equivalent of one month’s salary for each completed year of service.
However, for applicants aged 50 years and above, the severance pay will be at the rate of two month’s salary for each full year remaining to the retirement age of 60.
Successful applicants will also get a one month salary in lieu of notice, purchase of leave days earned but not taken up to the last day of employment, and pension benefits in accordance with NBK Pension Scheme and Retirement Benefits Authority rules.
The Bank’s Chief Executive Wilfred Musau says the move is aimed at improving cost management.
“We believe the scheme is employee-friendly and is good for the bank too, thus a win-win deal for both parties,” said Musau.
The process is expected to be concluded in the coming week and successful applicants will be released from the bank’s employment effective February 1, 2018.
“The early retirement plan seeks to align the staff headcount with strategic needs of the bank. The bank’s management has during the transformation period, been focusing on reinforcement of the organization’s Corporate Governance Structure and strengthening of both the Risk and Credit functions,” he noted.
In 2014 the bank implemented a voluntary early retirement scheme, which saw 200 employees leave the bank.