NCBA Employees: The NCBA Bank is set to lay off employees. The bank, which is associated with the Kenyatta family will lay off employees in two sets of staff reorganization. According to a memo that was addressed to the bank’s staff by the NCBA chief executive officer John Gachora, the bank has blamed the impact of the coronavirus for the move.
“The COVID-19 pandemic, which is the most harrowing health and economic crisis of our lifetime, has affected the execution of our growth plans. We have had to defer our plans to scale our branch network and have taken unprecedented steps to support our customers in weathering this storm through loan moratoriums and fee waivers,” Gachora said.
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The first phase of the sackings has been labeled as the Voluntary Exit Program (VEP). This will allow employees who wish to exit the company to do so with a benefits package as detailed at the end of this note. The second phase will be the redundancy phase, whose scale and terms will be dependent on the outcomes of the Voluntary Exit Program.
Those who exit voluntarily will get a salary to the last day at work, but no later than Dec 31st 2020. “They will also get an exit payment calculated at the rate of one month’s salary for each completed year of service or payment for the months to retirement whichever is lower in recognition of the service rendered to the Group,” said the memo by Gachora. “The benefits under the Redundancy Program will be determined in accordance with the law, but in any case, no better than those of the Voluntary Exit Program.”
The memo, however, did not reveal the exact number of employees who will be affect. But given that the bank will execute the two programs simultaneously, the number of affected employees could be quite high.