Massive layoff expected as Ecobank Kenya closes branches

Casualties of the new banking laws

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An Ecobank branch. PHOTO: YOUTUBE

Ecobank has become the latest casualty of the new regulations by Central Bank of Kenya and now plans to close down some of its branches in Kenya.

The lender said on Tuesday, November 1, that it was putting the final touches to its plan to shut down operations in nine branches this coming April.

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According to a report by Tuko, the institution will be shifting most of its businesses to digital platforms an exercise that may see a good number of its employees rendered redundant.

Some of the branches the bank plans to close are Ecobank Chamber, Ongata Rongai, Gikomba, Embakasi, Thika Road Mall (TRM), Meru, Kitale, Busia and Malindi branches.

A report by the Daily Nation suggests that the lending institution plans to only retain 20 branches across he country.

“The decision to close the nine branches was arrived at early this year after we reviewed our business operating model and elected to use a more effective and efficient way of serving our customers,” the local daily quoted Ecobank Chief Executive Officer Sam Adjei.

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The bank entered the local market back in 2008 after it acquired the now defunct East African Building Society. But since setting foot in Kenya, the bank has been struggling to record profits.

“There may be some employees who may be rendered redundant and the process will be in accordance with the applicable laws,” the bank’s boss said.

The move by Ecobank seeks to reduce its operational costs as it also looks to boost its revenue streams.

It is said that Ecobank is in the final stages of selling its head office – Ecobank Towers – located in the Central Business District so as to fund its operations.

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Via the Star