Co-operative Bank of Kenya has increased its staff size by 457 in the last 12 months to September on the back of continued branch expansion in the country.
The lender’s latest disclosures show it closed September with 5,249 employees, up from 4,792 in a similar period last year, becoming among the few firms in corporate Kenya to grow headcount in the challenging operating environment where job cuts have become rampant.
The rise in Co-op Bank’s number of employees has come amid its continued opening of new branches in the country as it eyes more business, especially in the counties.
Co-op Bank’s branch network hit 193 at the end of September, up from 181 in the same period last year, meaning that it has added 12 outlets over this period, with eight coming this year alone.
The eight branches opened in 2023 are Nakuru Bahati Road, Kimana, Matuu, Thika Kwame Nkrumah, Greenwood Mall – Meru, Kenol Makuyu, Hindi – Lamu and Bamburi – Mombasa.
The lender had opened five branches last year in Kabarnet, Iten, Kasarani, Kamakis and Chwele.
The additional headcount saw the bank’s staff costs rise from Sh10.8 billion to Sh12.1 billion in the nine-month trading period ended September.
Co-op Bank has been opening new branches since 2018, with chief executive Gideon Muriuki saying the lender is still keen on deepening its physical presence despite the rising uptake of digital products in the sector.
“We are still opening carefully-selected physical outlets as we believe there is no one single channel that will displace all others, rather, it’s the investment in an optimal and balanced multichannel strategy,” said Mr Muriuki.
Co-op Bank had optimised staff numbers in 2014 following the McKinsey-advised transformation programme, but the expansion drive has seen it raise its headcount again as profits grew.
Top lenders such as DTB, Equity and Co-op Bank are increasingly transforming branches into service hubs.
targeting businesses such as small and medium-sized enterprises. Bank agents also depend on branches for cash management services.
Co-op Bank posted a 7.6 percent growth in net profit to Sh18.4 billion in the first nine months of trading on increased income and reduced operating costs.
The net profit grew from Sh17.1 billion posted in a similar period last year. Net interest income rose from Sh32 billion to Sh32.8 billion as net loans and advances to customers increased by 12.8 percent to Sh378.1 billion.
