HF Group is planning to lay off 36 employees in a bid to restructure its operations. The firm says the restructuring is in line with the recently launched digital banking strategy which diversifies its portfolio away from mortgage financing.
In a statement to the dailies the Group says it will lay off 9 percent of its total work force affecting both management and other staff cadres.
Roles such as the finance role will be merged with that of strategy, sustainability and business performance.
“The key criteria in the identification of staff will be their fit in the revised organization structures, based on their skills and experience, standard of work performance, displayed work initiative and respective competencies defined for the different roles in the new organization design. The exercise will take effect immediately, as guided by the requisite Labour laws and will affect both management and other staff cadres.” said the statement.
HF Group MD Frank Ireri says that rationalizing roles will address operational costs which have remained high hence hindering profitability while gearing towards future growth.
The mortgage financier reported a Ksh 37 million after tax profit Q1 2018 from Ksh 88 million in the same period last year. The drop was largely attributed to operating costs rising by 10 per cent to Ksh 928 million and a dip in net interest income.
Mr. Ireri’s term comes to a close in March 2019 after he had announced that he will not seek to renew his contract. He was appointed Managing Director in July 2006, and Group Managing Director on 1st July 2015
The Group’s subsidiary HFC last month launched the ‘HF Whizz’ mobile application which has been designed to disrupt traditional banking with regards to lending aspect.
