Co-op expands Local branch, adding 520 jobs

In the fiscal year that ended in December 2022, Co-operative Bank of Kenya created 520 new jobs as part of a national expansion that saw the opening of six new branches.

According to the lender’s annual report for 2022, it had a total of 4,766 employees at the end of the year, of which 720 worked in management, 3,224 in supervisory and union-eligible positions, and 822 in other positions.

With 262 new hires, the banking operation in Kenya now employs 4,299 people, with the remaining positions being split among its other local subsidiaries and its South Sudan division.

Despite moving 90% of transactions online, the lender had stated at the beginning of last year that it was considering opening new branches due to a need for cash management and other support services among its customers large base of retail clients and partners – individuals, saccos and agents.

It increased the number of its physical locations during that time by six branches, bringing the total to 184.

Co-op’s staff costs increased by Sh1.46 billion to Sh14.78 billion as a result of its larger headcount.

Basic salaries accounted for Sh12 billions of these costs, with the remaining funds going to allowances, statutory and pension contributions, medical, and training costs.

As part of a nationwide increase in Kenyan banking jobs of 3,667 to a seven-year high of 36,107, Co-op joined other tier one lenders like KCB, Equity Group, and DTB in significantly increasing headcount last year. This represents the fastest increase in employment in the local banking sector in 14 years.

The demand for more staff, particularly among large banks, was cited by the Central Bank of Kenya (CBK) in its annual banking sector report, which was published last month.

The number of workers at the group as a whole increased by 2,560, primarily as a result of new hiring at other regional units and the acquisition of a controlling stake in the Democratic Republic of the Congo’s (DRC) Trust Merchant Bank, which came with 1,752 employees. KCB added 720 workers to its Kenyan operations.

In the year that ended in December, DTB Group’s employee count increased by 382 to 2,538. This increase was primarily attributable to the company’s expansion strategy in Kenya.

The DRC, which is home to Equity Group’s most successful subsidiary, saw an increase in the number of branches it operated last year, adding 538 new employees to its payroll.

The lender stated in its most recent annual report that the number of permanent employees increased from 7,688 to 8,226 in the year ended December 2022.

Even after taking into account the digital switch, which led to the growth of mobile and internet banking channels, the expansion of the banking sector’s workforce and network coincided with the return of customers to banking halls.

However, banks have booked higher revenues from their varied income streams to offset the higher staffing costs.

As income growth outpaced expense growth, the sector’s pre-tax profit increased by 22% to Sh240.4 billion last year from Sh197 billion in 2021.