Kenya’s Commercial Bank of Africa said on Friday its shareholders had accepted a share swap with NIC Group, paving way for its merger.
The two banks first announced their planned merger in January, in which current NIC Group shareholders would own 47 percent of the merged entity and CBA shareholders owning 53 pct.
“As a result of the share exchange transaction, it is proposed that NIC Group will acquire sole control of CBA and its subsidiaries,” CBA said in a statement published in Kenyan newspapers.
Approximately 1 200 jobs at Standard Bank will be impacted as the financial services provider embarks on a new banking delivery model.
According to a statement issued by Standard Bank on Thursday afternoon, a total of 91 branches will be closed as the bank opts for a digital banking offering for consumers. The vast majority of these branches will be closed by June 2019, the statement read.
"These changes will impact approximately 1200 jobs. However the actual number of employees who will ultimately exit the employ of Standard Bank SA could be lower, as new opportunities will become available in the new operating model," the bank said.
Standard Bank will provide a "comprehensive exit package" for employees.
"We have also set aside funds to assist employees acquire new skills to improve their competitiveness in the labour market, as well as entrepreneurial training and financial assistance," Standard Bank said.
"This has not been an easy decision to make. We recognise that this is a very stressful time for everyone."
The bank has started briefing sessions with employees, which will continue across the provinces in coming weeks.