CBK Report Predicts Banks To Reduce Workforce By End Year
Kevin Namunwa  |  Aug 7, 2020
       

Fresh data from the Central Bank of Kenya shows that commercial banks are set to trim their workforce in the course of the year.

 

Banks in the country have experienced an uptake of digital activities and reduced business projects as a result of the outbreak of the coronavirus disease hence the need to trim their workforce. The lenders will be looking to cut costs by cutting off excess staff.

 

The data from the CBK Monetary Policy Committee survey report for July shows that 11% of tier 1 banks revealed that banks could fire staff. 22


22% of the lenders surveyed revealed that they had actually intended to hire more workers in March before coronavirus shook the country’s economy.

 

Non-banking institutions, on the other hand, have faced the wrath of the pandemic on the containment measures that affected their operations forcing them to cut down their staff numbers to curb the spread of the disease.

 

Microfinances, lenders, and most medium enterprises said they are likely to maintain the status quo and hold on any lay off plans owing to the lifted travel restrictions that have provided optimism in picking up of the country’s economic activities.

However, the report shows a slowdown in further layoffs, with some respondents indicating that they were keen on taking advantage of new opportunities and the stimulus package offered to local firms, such as motor vehicle assemblers and hotels.

Some respondents indicated that the demand for credit may remain moderate largely due to uncertainties with the rising Covid-19 cases, and credit risk, the report, says the report.

At the same time, the hotel sector players during the survey period said they had to shelve their redundancy plans especially after the reopening of domestic flights.