Sidian Bank to layoff 108 staff in cost-cutting plan
What you need to know:
The move by the tier-three lender comes weeks after Family Bank announced a similar move to shed an unspecified number of workers off its payroll.
Sidian Bank, majority owned by investment firm Centum, has announced a new voluntary retirement plan targeting 108 staff as it moves to trim its payroll.
The retrenchment will cost the three-tier bank Sh70 million, chief executive Titus Karanja said Monday at a media briefing.
Mr Karanja said the retrenchment was not necessitated by the recent law capping interest rates, adding that the lender had planned the move before the legislation was passed.
The new law prohibits banks from charging customers interest rates of more than four percentage points above the Central Bank Rate.
"Price is no longer a distinction under the interest rate caps regime. It is now about efficiency," said Mr Karanja.
