Barclays Bank Kenya (BBK) staff count has dropped by 171 workers last year owing to failure to replace retiring or retrenched employees in the dawn of interest rates cap law.
According to BBK latest annual report. Staff costs at the bank grew from Sh4.99 per cent to Sh9.77 billion last year compared to Sh9.3 billion in 2015.
Just in December 2016 the bank had 2,591 employees as compared to 2,762 workers a year earlier.
“With the announcement of the Barclays Plc sell-down in Barclays Africa Group Ltd (BAGL) and the introduction of interest rate caps, many employees were concerned about their fate at the bank,” the bank acknowledged in the 2016 annual report.
Nearly most of Kenyan banks including Bank of Africa, StanChart, Family Bank, Sidian, First Community Bank, NIC , and Ecobank have turned to job layoff as a way cut down on costs as the new law capping interest rates continue to rise.
The bank which has been in existence in the country for 100 years reported employee headcount at 3,072 in 2012 and has reduced over the years, as the bank turns to digital technology to automate operations and cut costs.
“The financial services industry is becoming increasingly competitive with more reliance on technology and innovation as key differentiators for service delivery,” says Barclays.
Last year word went out to media outlets that Barclays bank is planning to exit its African market which the bank refuted.