Kenya: Bank of Africa closes 12 branches
The bank has announced closure of 12 branches to focus on digital banking.Bank of Africa (BoA)
has disclosed that 12 of the 42 operational branches in Kenya will be closed in a move to cut operational costs and focus on digital banking. Prior to this announcement last week, five other banks had announced branch closures when Kenyan Government moved to regulate interest rates on loans and savings. Speaking on the development, the Managing Director of BoA, Ronald Marambii made it known that the decision to close branches and lay off scores of staff is to save up to 9 percent of its Sh2.5 billion operational costs by focusing on digital banking. "Over the years we have witnessed fewer footfalls as customers embrace digital banking and we have to consolidate branches closing 12 out of the 42 locations subject to approval of the Central Bank," he said. Co-operative Bank, National Bank of Kenya, Equity Bank, and Sidian Bank are among others that
made a similar move earlier. Following the enactment of the rate cap law, commercial banks have been cutting costs by promoting digitisation of financial services.