Kenya’s mortgage lender HF Group on Tuesday announced a plan to lay off nine per cent of its employees in line with its recently launched digital banking strategy.
The Group’s Managing Director Frank Ireri noted that the restructuring would result in merger, redundancy and creation of new roles.
“By rationalizing roles, we are providing the appropriate gearing towards future growth and addressing current issues such as operating costs for the business which have remained high and hindered our ability to operate profitably,” Ireri said.
But the lender also noted that those affected by the new move will be will be offered a generous redundancy package.
Under the new organizational structure, roles such as the finance role will be merged with those of strategy, sustainability and business performance.
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The merger, the MD noted is in line with the group’s endeavor to embed sustainability in its core business operation strategy and governance structures.
The move will also see HF Group accrue the benefits of improved cost management in the medium term.
HF joins the growing list of financial institutions that have announced staff cuts in the recent past among them Standard Chartered, Kenya Commercial Bank, National Bank.
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