A Kenyan bank has suspended the provision of afternoon tea for its employees in a bid to cut costs.
This Kenyan bank has suspended afternoon tea to its employees to cut costs
The lender’s procurement and logistics officer said the decision was taken following "a lot of thought and debate".
Family Bank has taken the decision to stop providing the company sponsored afternoon drink as it seeks to focus on profitability through services to its customers.
"Beginning today we have suspended company sponsored afternoon tea and only morning tea will be served.”
"We have had to make some very hard choices. We have been forced to re-look every one of our cost lines and re-evaluate where we can make further reductions to restore the bank back to profitability,” read part of the memo sent to employees.
The lender’s procurement and logistics officer Muchane Ndungu said the decision was taken following "a lot of thought and debate".
He urged the workers to offer any other ideas on how to further cut costs.
Family Bank's reported a drop of 82.21% in after tax profits to Sh352.5 million ($3.4 million) for the year ended December 2016.
The mid-tier lender's earnings were largely hit by provisions against bad debt, which tripled, and a one-off Sh380 million staff rationalization cost.
The Bank’s gross non-performing loans rose by 92 percent to Sh8.3 billion ($80.4 million) from Sh 4.3 billion ($41.7 million) as of March 2016, largely pegged on a tough operating environment that slowed down its clients.
This resulted in a 3% per cent growth in loan loss provisions to Sh847.37 million ($8 million) from Sh211.88 million($2 million) previously.
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