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KCB to close more branches across the country

Author : | Published: Monday, May 8, 2017

The Kenya Commercial Bank, KCB says it is closing some of its branches in South Sudan due to the economic crisis.

The Managing Director of KCB South Sudan, Harun Kibogong, says the bank has lost almost three billion US dollars on net monetary position due to the conflict.

The Managing Director of KCB South Sudan says the board of directors at the headquarters in Nairobi has approved the temporary closure of some branches.

Harun Kibogong told Eye Radio in Juba that the planned closure is driven by logistical and operational challenges that have made operations unsustainable.

“The hyperinflation has caused KCB to do a reassessment of itself and therefore it is indeed intend to temporarily close some branches due to logistical and operational challenges,” said Mr. Harun.

The branches that will be affected include Torit in Imatong, Rumbek in Western Lakes, Konyo-konyo in Juba, Kuajok in Gogrial, Yei in Yei River and Yambio in Gbudwe.

Three branches have already been closed since 2013 – Malakal, Bentiu and Bor.

Mr. Harun said business operations and volumes have been retained in local currency, but the impact of conversion into hard currency led to the bank taking a net loss of 2.8 billion pounds in monetary position.

He said the closure of the six branches may lead to what he calls staff realignment, but he did not say the time and how many workers would be affected.

“KCB intends to remodel itself in South Sudan due to the economic crisis which we are all aware of – the Consumer Price Index which has shot up in the country,” he added.

Mr Haruan said customers in the areas affected may access the services from the nearest branches.

KCB is a Kenyan bank with its head office in Nairobi and branches in different countries in the region. It entered South Sudan in 2006 and became one of the big commercial banks in the country.

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