NBK unveils voluntary retirement plan for staff

By Winsley Masese

National Bank of Kenya (NBK) has opened up the door for voluntary retirement for employees aged 50 years and above as part of its restructuring process. Managing Director Munir Ahmed said the job cuts will be on a voluntary basis and would not be as painful as others witnessed before during similar exercises.

“As part of our cost rationalisation process we have opened up the opportunity for employees aged 50 years and above and who would want to go the opportunity for early retirement,” he said. The rationalisatioin process, he said, is geared towards getting the right staff to complement the bank and achieve its growth target as spelt out in its strategic plan 2013-2017.

Munir made the remarks during an investor briefing in Nairobi Wednesday. The bank saw its profit before tax jump from Sh1.16 billion in 2012 to Sh1.81 billion in 2013, registering an improved growth of 57 per cent.

He attributed the increase to restructuring of business operations, expansion of the branch network and investment in technology.

During the period under review, net interest income grew from Sh4.77 billion in 2012 to Sh5.64 billion in 2013. Total assets also grew to Sh92.56 billion in 2013 compared to Sh67.18 billion during the previous financial year.

Its customer deposits also increased to Sh78 billion in 2013 compared to Sh55 billion, representing a 42 per cent growth.

Directors also resolved to recommend to the forthcoming Annual General Meeting due on May 30, a first and final dividend of Sh0.33 per share. Munir said voluntary retirement among the bank’s workforce of about 1,800 employees started about three weeks ago and there is overwhelming response.

Though the bank aims at opening 10 branches every year during its restructuring period, the same workforce will be deployed to new stations as has happened before.

Free to retire

However, he did not specify the particular category of the workforce they are targeting in the process, saying every employee above 50 years is free to retire. Munir identified small and medium enterprises as a key market segment to drive the bank’s growth strategy.

“The sector is the engine of growth in this country and its contribution to the institution outstrips the corporate and retail banking combined,” he said. On the rights issue, he said that they have presented the necessary documents to the market regulator for approval. “To continue growing we need additional capital and shareholders like the National Social Security Fund are fully behind us,” he stated.