July 26th 2017

Business / Economy

Bank of Africa to send home 300 in February, setting panic in banking sector

The bank will close at least eight of its 24 branches in Nairobi and double that number out of the capital. According to a senior official who spoke to us on condition of anonymity, the bank will fire at least 300 employees in February.

By Free Press Reporternewsdesk@kenyafreepress.comFriday, 20 Jan 2017 16:39 EAT

Bank of Africa branch along Taifa Road, Nairobi.

Job losses in the Kenyan economy will continue in the coming month following an announcement by Bank of Africa that it will close at least a dozen branches. The bank will close at least eight of its 24 branches in Nairobi and double that number out of the capital. According to a senior official who spoke to us on condition of anonymity, the bank will retrench at least 300 employees in February.

The bank has rapidly expanded in Kenya over the last five years, and it currently has more than 40 branches, with most of them being in Nairobi. However, according to our source, the branches have become increasingly expensive for the bank to operate as customer numbers and savings drop with the recession in the economy.

At the end of the restructuring, the bank will have only 30 branches. It attributes the impending job cuts to the growing reliance by Kenyans on online banking platforms.

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