Mass layoff crisis looms at KWFT as managers put on 3-month contracts

Business Development Officers at Kenya Women Microfinance Bank (KWFT) are now on 3-month performance contracts, which could lead to mass layoffs.

Pay cuts and short-term contracts can create uncertainty and stress for employees. It’s important for companies to communicate openly and transparently about their plans and to provide support for affected staff during times of change.

The move follows a Sh725 million agreement with the Africa Guarantee Fund, which aimed to broaden the bank’s services.

The Kenya Women Microfinance Bank Plc (KWFT) and the African Guarantee Fund have signed a Sh725 million risk-sharing partnership agreement to expand lending to small and medium enterprises led or owned by women in Kenya.

The partnership aims to address the significant financing gap that women entrepreneurs face, empower them economically, create jobs, and contribute to the region’s development.

Under the agreement, more than 1,000 women-owned SMEs in the country will have access to up to Sh3 billion in financing, as the African Guarantee Fund (AGF) is prepared to absorb a portion of the potential default losses in exchange for a fee from the bank.