Banks cut entry-level salary to KSh50,000
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The Banking Insurance and Finance Union (BIFU)— to lower the entry-level salary in the industry to Sh50,000
The Banking Insurance and Finance Union (BIFU)— to lower the entry-level salary in the industry to Sh50,000.
Banks are expected to expand their hiring after successfully negotiating with their union –the Banking Insurance and Finance Union (BIFU)— to lower the entry-level salary in the industry to Sh50,000.
The lower entry-level salary is expected to allow lenders to hire more workers at a lower cost, setting the stage for increased bank jobs.
“We usually have CBA negotiations with the union, and this year, we actually hit a milestone in terms of reducing the minimum entry point for workers,” Kenya Bankers Association CEO Habil Olaka said.
“We have revised it down from Sh82,000 to Sh50,000 and this enables banks to get more staff at the entry level. We will actually see the number of employees in banks moving much higher.”
The number of jobs in the banking sector is already at a seven-year high with the Central Bank of Kenya recording 36,107 bank jobs in 2022, the highest count since 2015.
The bulk of the new jobs has been concentrated on secretariat staff whose count reached 4,005 last year, up from 2,498 jobs in 2021.
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In its annual report, the CBK noted the increase in banking sector jobs had been driven by demand, especially from large banks that continue to grow in size, measured by branch network.
“The increase was largely attributed to some large banks recruiting additional sales and payment channels support,” the CBK noted.
Local branch expansion has underpinned the growth in jobs as the brick-and-mortar channels remain resilient amidst a transition into digital channels such as mobile and internet banking.
In 2022 for instance, the Co-operative Bank of Kenya added 520 jobs after it opened six new branches.
The lender closed the year with 4,766 employees with the majority, 3,224, in supervisory and unionisable positions.
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