Sidian Bank seeks tier two status as lender offers employees early retirement packages in bid to cut costs


Over 108 Sidian Bank employees have been urged to apply for early retirement, a move the lender says will help it save up to Sh70 million. Speaking at a Nairobi hotel this morning, Sidian Bank Managing Director, Titus Karanja said the move will further help the bank achieve its target of becoming a tier two bank by the year 2019. He said the lender is willing to give those employees who will be ready to go for voluntary retirement enough credit to help them become successful entrepreneurs who can help others through job creation.

“We want our employees to become entrepreneurs and employ other youths outside there and as such, we have allowed those willing to go for voluntary retirement,” he said.

He added that those willing to step down will only be given credit if they meet a set of pre-established requirements requirements.

“We shall only be giving credit access to those who have access to dara that enables effective credit score and own secured businesses as a basis for funding,” said Karanja.

He noted that the move will be done in a good will, stating that the decision was reached after the lender invested heavily in technology. He said after the successful roll out of innovative and successful IT system, there would be need to reduce the number of employees. Currently, the lender has 560 employees and should the 108 decide to go for early retirement, then the lender would remain with approximately 462 workers.

The Sidian Bank boss further confirmed that there has been a majority of employees who wish to leave and become self-employed. Karanja said the lender has grown tremendously since it rebrand in April and said it will be opening four more outlets within the capital city before the year ends.

“Since we rebranded in April, we as the lending institution recorded a 45 per cent growth in accounts, 8.7 per cent growth in deposits, 5.2 per cent in incomes and 1.8 per cent growth in loan book, ” he confirmed.

“As such we will be opening four new outlets at the Hub, Two Rivers, Sammer and River Road to offer best customer service experience to our new and existing clients,” Karanja said.

Going forward, the lender says it plans to enroll 3,000 agents across the country who would help customers make seamless transactions through agency banking.

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