National Bank will lay off at least 150 of its permanent and pensionable employees from February 1.
Workers to be placed on the early retirement scheme are those aged 35 and above and who have served the bank for at least five years.
They will volunteer to be part of the scheme, an approach endorsed by the board.
Successful applicants will be offered a month’s salary in lieu of notice, purchase of leave days earned but not taken up to the last day of employment, and pension benefits in accordance with the bank’s pension scheme and rules of the Retirement Benefits Authority.
They will also continue to enjoy medical insurance cover, for the remainder of 2018, and a discretionary loan rebate of 20 per cent if their outstanding loans are cleared within six months.
They will also continue servicing staff loans in line with policies.
The VER plan will offer a severance pay equivalent to one month’s salary for each completed year of service.
READ: Govt ordered to pay Itumbi Sh5m damages
For applicants aged 50 years and above, the severance pay will be at the rate of two months’ salary for each full year before the retirement age of 60.
Managing Director Wilfred Musau said the early retirement plan seeks to align the staff headcount with the lender’s strategic needs.
He said it will improve cost management benefits of the bank in the medium term.
In 2014, a similar scheme saw 200 employees leave the bank.
