The competition watchdog has ordered listed bank DTB #ticker:DTK to retain employees of Habib Bank as a pre-condition for the takeover approval.
In a gazette notice dated June 12, 2016, the Competition Authority of Kenya (CAK) said it had given the nod for the takeover subject to retention of 41 Habib employees.
“Pursuant to the provisions of Section 46 (6) (a) (ii) of the Competition Act, 2010, it is notified for general information of the public that the Competition Authority of Kenya has authorised the proposed acquisition of business, assets and liabilities of Habib Bank Kenya by Diamond Trust Bank Kenya on condition that the acquirer, Diamond Trust Bank Kenya retains at least forty one employees of Habib Bank post transaction,” said CAK director-general Wang’ombe Kariuki.
The announcement comes as huge relief for Habib staff.
CAK is reading from a familiar script. In November CAK, ordered listed banker I&M Holdings #ticker:I&M to retain 108 employees of Giro Commercial Bank, as a pre-condition for approval of the takeover.
Many banks have been reducing staff count as margins thin in the wake of the rate capping law and the rise of online banking.