SBM Bank to layoff employees

The mid-tier lender has subsequently announced a voluntary employment separation scheme (VESS) which is open to all employees and closes on October 19.

The move follows a job evaluation exercise which is backed by the bank’s board.

“The bank has reviewed its organization structure into a fit-for-purpose structure which is to be implemented in order to realize its current and future strategic objectives while optimizing its digital banking solutions,” SBM noted in a statement.

SBM is expected to embark on redundancy program should the voluntary lay-off scheme fail to reach its desires outcome.

Nevertheless, the bank has not indicated the number of roles it seeks to cut in the exercise.

Even so, the lender has been out to cut its fat to take on a leaner frame in its operations to include a reduction of its brick and mortar outlets.

On Thursday last week, the bank announced it would be closing down three branches which will be merged to existing physical hubs.

The three branches include Lavington, Buru Buru and Kimathi.

At the same time, SBM is closing two of its express units in Limuru and on Ngong Road.

“Our customers are increasingly leveraging our digital capabilities. By optimizing the strategic placement of our physical branch network, we are ensuring appropriate resource allocation to our growing market area. At the same time, our investment in digital channels allow us to best serve customer demand, no matter the physical location,” said SBM Bank Kenya Moezz Mir.

SBM Bank Kenya is a subsidiary of the State Bank of Mauritius and entered into the Kenyan market through the acquisition of a majority stake in Fidelity Commercial Bank Limited.

The lender later curved out the majority of assets in Imperial Bank Limited in Receivership (IBLIR) which remains under the statutory management of the Central Bank of Kenya (CBK).