NCBA rehires 175 employees amid new expansion drive

NCBA Group #ticker:NCBA has rehired 175 employees it had let go in June last year following the outbreak of the Covid-19 pandemic.

The bank laid off 350 workers who were on temporary contracts as part of its cost-cutting measures at the time. It also later rolled out a voluntary early retirement programme that saw the exit of 130 staff who were on permanent contracts.

But NCBA embarked on a new expansion drive this year, a move that has seen it hire some of the staff whose short-term contracts were terminated mid last year.

“Last year around June we released 350 of our non-permanent staff. Out of those that we released half of them have already come back and most of them are now on permanent contracts,” said John Gachora, NCBA’s chief executive.

“We have been expanding and the best people to hire are people who already have worked for you before. That’s why we went for them because they were all junior staff.”

Mr Gachora said the bank is investing more in additional branches and expansion in technology and customer service, among other areas.

The bank will soon open two branches in Nairobi –Gikomba and River Road— besides Embu, Kikuyu, Ngong, Kiambu, Kericho, Bungoma and Naivasha.

These will add to the six branches that have been opened so far this year –at Kamakis, Nyeri Mall, Mitchell Cotts, Karatina, Kakamega and Mwembe Tayari.

NCBA is one of the few banks opening more branches across the country. Co-op Bank is also adding more outlets in areas where it says there are still growth opportunities.

NCBA’s renewed expansion is a signal that lenders are ready to reverse some of their cost-cutting strategies adopted in the wake of the pandemic.

The banking industry laid off hundreds of workers, with some closing branches and reducing or suspending dividends to conserve cash.