Co-operative Bank Group, led by Kenyan banking magnate Gideon Muriuki, demonstrated its commitment to expansion and growth as it added 520 jobs and opened six new branches in Kenya during the 2022 fiscal year.
The Nairobi-based financial services group under the leadership of Muriuki recorded remarkable financial performance, with profits surging by more than 33 percent, reaching Ksh22 billion ($169.1 million) at the end of its 2022 fiscal year despite the challenges posed by the operating environment.
At the close of the fiscal year, Co-op Bank’s total workforce stood at 4,766 employees, an increase of 520 from the previous year. Of these employees, 720 held management positions, 3,224 were in supervisory and unionizable roles, and 822 were classified as other roles.
The expansion efforts primarily focused on the Kenyan banking operation, which added 262 employees, bringing the total workforce to 4,299. The group’s subsidiaries and its South Sudan unit also contributed to the surge in the total headcount.
While Co-op Bank had migrated 90 percent of its transactions online, it recognized the importance of physical branches to provide cash management and support services to its extensive customer base, comprising retail clients, individuals, saccos, and agents.
As a result, the banking operation opened six new branches, bringing the total number of physical outlets to 184.
The increased workforce and branch expansion led to a rise in staff costs, totaling Ksh14.78 billion ($113.5 million), with Ksh12 billion ($92.2 million) allocated to basic salaries. The remaining funds were utilized for allowances, statutory and pension contributions, medical expenses, and training expenses.
Despite the surge in operating expenses, Co-op Bank’s 2022 annual report revealed an impressive financial performance. The growth in both interest and non-interest income streams contributed to the significant profit surge, marking a remarkable increase of 33 percent from Ksh16.5 billion ($126.8 million) in 2021 to Ksh22 billion ($169.1 million).
