Co-operative Bank of Kenya added 520 jobs in the year ending December 2022 on a local expansion that saw it open six new branches in the country.
The lender says in its annual report for 2022 that it closed the year with 4,766 employees, out of whom 720 were in management, 3,224 in supervisory and unionisable positions, while 822 were classified as other roles.
The Kenyan banking operation added 262 jobs, taking its total to 4,299, with the remainder spread across its other local subsidiaries and its South Sudan unit.
The lender had said at the beginning of last year it was eyeing new branches despite migrating 90 percent of transactions online because of a need for cash management and other support services among its large base of retail clients and partners – individuals, saccos and agents.
In the period, it added six branches, taking its total number of physical outlets to 184.
Co-op’s higher headcount saw its staff costs rise by Sh1.46 billion to Sh14.78 billion.
Out of these costs, Sh12 billion covered basic salaries, with the remainder going towards allowances, statutory and pension contributions, medical and training expenses.
Co-op joined fellow tier one lenders such as KCB, Equity Group and DTB in adding significantly to headcount last year, part of a total increase of Kenyan banking jobs by 3,667 to a seven-year high of 36,107, representing the fastest jump in employment in the local banking sector in 14 years.
The Central Bank of Kenya (CBK), in its annual banking sector report released last month, attributed the rise of employment in the sector to the demand for additional staff, especially among big banks.
KCB added 720 employees to its Kenyan operations, while the number of workers across the group rose by 2,560, mainly on the back of the acquisition of a controlling stake in the Democratic Republic of Congo’s (DRC) Trust Merchant Bank, which came with 1,752 workers, and fresh hiring across other regional units.
DTB Group saw its staff count rise by 382 to 2,538 in the year ended December, largely in its Kenyan operation where it is implementing an expansion strategy.
Equity Group added 538 employees to its payroll last year on an increased number of branches mainly in the DRC which hosts its most profitable subsidiary.
The lender disclosed in its latest annual report that the number of permanent staff hit 8,226 in the year ended December 2022 from 7,688 in the previous year.
The combined increase of banking sector staff and the network has coincided with the return of customers to banking halls, even accounting for the digital switch, which has seen the rise of mobile and internet banking channels.
Banks have nevertheless offset the increased staffing costs by booking greater revenues from their diversified income streams.
The pre-tax profit for the sector increased by 22 percent last year to Sh240.4 billion, up from Sh197 billion in 2021 as income growth outpaced that of expenses.
