After acquiring Faulu Microfinance Bank, Old Mutual Insuarance Company cannot sustain the fastest-growing bank. Faulu Bank is on the verge of collapsing.
The collapse of Faulu Microfinance Bank is imminent, leading to the closure of 27 branches. This has more than half of the branches in place. It seems none of the buy-out deals fell through, hence the need to downsize.
This week, management called managers to a meeting to announce a staff redundancy program.
Over 90% of the staff were on the Performance Improvement Plan (PIP), and the challenging economic conditions have hindered most of them from showing any improvement.
In the next two weeks, the Old Mutual management will release a report on these ongoing events and retrench many more people.
As the country grapples with high unemployment levels, Faulu staff are spending the next few days contemplating how to survive with no or few jobs available.
As the country grapples with rising unemployment, the fate of Faulu's staff only adds to the uncertainty for many Kenyan families.
Faulu's imminent downsizing is yet another harsh reminder of our fragile economic landscape, where even established institutions struggle to stay afloat.
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