Kenya Women Microfinance Bank rules out downsizing of its workers to cut cost

Kenya Women Microfinance Bank will not send staff home despite the harsh economic environment that has seen other financial institutions cut down on costs.

Chief Executive KWFT Mwangi Githaiga said his institution would not embark on such extreme measures because it is 'morally wrong'.

Other financial institutions, especially commercial banks have decried a tough operating environment over the last one year, including the capping of interest rates and announced measures that they expect will help them remain profitable.

These include increased use of technology and agents as well as cutting down on the number of employees.

While microfinance banks have not affected by the law assented to by President Uhuru Kenyatta in September capping interest rates at four per cent of the Central Bank Rate, they encounter other challenges as commercial banks.

"We will not cut down employment because it is not morally right. We have certain parameters that we use to measure success, the numbers is one of them and though it is critical, we also look into the socio-economic welfare of our employees and clients," said Githaiga.

He added that he is not worried about losing customers to commercial banks even with the lower interest rates that are currently at 14 per cent, saying MFIs serve a niche clientele that mainstream finance institutions would not find appealing.

KWFT was last week named the best employer in 2016 in the large company category. East Africa Breweries Limited came second while CIC Insurance Company took the third position in this year's Deloitte Best Company to Work for Survey.

"We have been on this journey for a while. Initially we were skeptical because the process entails letting your employees tell somebody else what they think of you as an employer," said Githaiga.

"We don't have special programmes that I would say played a part in getting us to be the best company to work for. What we have is an environment that is akin to a home where we work on our weaknesses and at the same time enhance our strengths."

The MFI has 2,900 employees working across its 241 retail outlets around the country. Githaiga said that the MFI promotes from within, which has played a key role in employee retention.

"We have an attrition rate of about nine per cent and these are mostly new entrants to the company that find that this is not a right fit for them. This is understandable as they are mostly young and still figuring out the direction that they would want to take,"

"They rarely leave because of problems or fights with the company. It is usually a mutual parting. I also have an open door policy where any employee can come in with an idea or even a complaint."