Family Bank fires 150 employees, seeks to align its business

BUSINESS

Family Bank has laid off 150 employees, a move it says was prompted by the need to align its business to the current operating environment.

“We continue with various cost-cutting measures and in that respect, we have undertaken a restructuring programme to resize the support functions at the Head Office in order to achieve meaningful and sustainable revenue growth,” Family Bank Managing Director David Thuku said.

David Thuku said Family branch operations will not be affected by this exercise adding that the bank will provide full support to the affected members of staff to ensure that they receive the necessary support during this difficult transition.

The Standard reports that firing of the employees is mainly due to the depressed economic performance in the first full year under the interest rate cap regime.

Last month, Family bank recorded Sh743 million loss compared to a net profit of Sh963 million in a similar period last year. Net interest earnings for the bank also went down by 46 percent to Sh2.94 billion in 2017 in the nine months through September from Sh5.47 billion last year.

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