NCBA shuts 14 branches on Covid-19, merger

NCBA Group #ticker:NCBA has shut 14 of its branches in Kenya due to Covid-19, which has reduced business activities on extended state restrictions on mass gathering as it eyes cost savings.

The third-largest bank by assets in Kenya was born after the merger last year of NIC and CBA banks.

The lender said the merger had left the new outfit with branch overlaps while in some instances, the outlets face each other across the streets. It added the shutdown would enhance efficiency from the merged entities. It did not say how many employees will be affected by exercise.

“On April 1, 2020, the bank announced the temporary closure of eight branches in response to Covid-19. After careful consideration, we have decided to permanently close seven of these branches. In addition, we have identified another seven branches, which will be permanently closed,” said the lender in a notice to customers.

“The proposed actions will enable NCBA to accelerate the realisation of merger synergies, create operational efficiencies and enhance service delivery.”

Eight of the affected branches belonged to the former NIC Bank while six belonged to CBA.

They are spread out in Nairobi, Nanyuki, Machakos, Mombasa, Diani, Eldoret and Meru.

The lender advised customers to access nearby branches for service while adding the “rationalisation has been made with careful consideration of customer impact and will ensure a smooth transition of those affected”.

“Since the merger, we have been looking at our branch network and had plans to open 15 new ones across the country as part of increasing our footprint across the country,”

“This plan is currently under review in light of Covid-19, but we remain optimistic that once the economy begins to recover we will roll out this growth strategy,” it said.