“I Was Laid Off Without Compensation,” Kenyans React On Co-op Bank Retrenchment

By Jane Okoth,

Just a week ago after the Co-operative Bank of Kenya embarked on a cost cutting plan by laying off 160 employees; the bank is now offering the sacked employees new terms for soft loans.

The 160 employees most of whom were on managerial positions have been offered a redundancy package that includes an option to repay outstanding loans at concessionary staff rates, according to the business daily.

The lender has offered the retrenched employees the option to repay their outstanding loans at rates of between six and 10 per cent.

This is in contrary to the Equity bank which dismissed claims of retrenching its workers and instead intended to create a newly owned subsidiary and transfer its Kenyan banking business, assets and liabilities to the subsidiary.

“Any employee who has been retrenched is supposed to be compensated in adherence with the labor laws,” says Michael Omondi, an Operations Manager at a Microfinance institution in Nairobi.

“It is actually the right of the employee to be compensated if he or she has been retrenched,” he opines.

He adds that, “It is sad to know that most of the employees are not aware that they are supposed to be informed about their retrenchment and their approval sought afterwards.”

But Sheila Nyawira, a Data Entry Clerk as a medium sized company is of the opinion that these are benefits that should not be taken for granted.

“Some employees are left to start from scratch after being retrenched so it is a really good move for the bank to do so,” she argues.

“I agree that this is a nice gesture from the bank. I was laid off from my last job without any compensation or benefits and I haven’t been able to secure a job,” says Peter Muloki, a former Technician at a construction company.

“The decision depends on the size of the company you are working for,” adds Sheila.

“If you are lucky enough to be employed in a huge corporate company, there is no doubt that you will be highly compensated,” she concludes.

“It is a good gesture to reward your ex-staff with something that can get them on their feet,” says Edward Wanyama a Procurement Officer at a middle sized supermarket.

“I was retrenched from my former job without my approval and no communication only to be summoned with a letter that my services were no longer needed in the company,” he confesses.

“Employers need to appreciate their employees for their long service and loyalty towards them by offering them some form of appreciation,” concludes Edward.

Have you ever been laid off and were you compensated?

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