NCBA bank shuts 14 branches in Kenya due to COVID-19

NCBA Group 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, according to a news report by Daily Nation.

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

The lender said the marriage had left the new outfit with branch overlaps while in some instances, the outlets face each other across the streets.

It added the shutdown is meant to 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 realization of merger synergies, create operational efficiencies, and enhance service delivery."

NCBA Bank Kenya, whose full name is NCBA Bank Kenya Plc, is a commercial bank in Kenya. It is licensed by the Central Bank of Kenya, the country's central bank and national banking regulator.