Business

SBM Bank Announces Intended Redundancies

SBM Bank has issued a notice of intended redundancies after failing to reach their targeted number under the voluntary exit window.

The lender, which bought Chase Bank three years ago, announced a voluntary exit scheme in October and is following up with redundancies after it failed to attain the targeted savings.

At the beginning of the year, the lender had about 900 staff most of who it acquired from Chase Bank. Chase Bank collapsed in 2016 with deposits of more than Sh100 billion, part of which was returned to small depositors while it was under the care of the CBK.

However, SBM has not disclosed the number of employees who left voluntarily or the number of staffers it intends to send home.

The staff who will be rendered redundant will be given similar terms as those who chose to leave in October including one and a half month salary for every year served, and maintaining staff interest rates on loans for five years.

The workers will also get paid up health insurance for three months and life insurance payments for half a year as well three months break on the principle of their staff loans.

SBM Bank, which closed five branches last December, also shut Lavington, Buru Buru, and Kimathi Street branches mid this year.

See Also:

SBM Bank Kenya Q1 2020 Net Profit Drops to KSh63.6 Million




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