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Kenya’s banking sector experienced an unprecedented surge in job opportunities, reaching a seven-year high. The rise in employment is attributed to major banks’ demand for additional staff, coupled with the opening of new branches to meet customer needs, despite the digital banking transformation.
Kenya’s banking sector experienced an unprecedented surge in job opportunities, reaching a seven-year high. The rise in employment is attributed to major banks’ demand for additional staff, coupled with the opening of new branches to meet customer needs, despite the digital banking transformation. Job opportunities reached an impressive milestone of 36,107 positions. According to recent disclosures by the Central Bank of Kenya (CBK), the sector witnessed a remarkable increase of 3,667 new staff in 2022.
The rise in employment within the banking sector covered various roles and responsibilities. Notably, the largest influx of jobs was observed among secretarial staff. The increase was largely attributed to some large banks recruiting additional sales and payment channel support. This trend aligns with the expansion strategies implemented by key players in the industry. Interestingly, the rise in banking sector employment coincides with a resurgence of customers visiting physical banking halls. Despite the ongoing digital transformation, which saw a peak in mobile and internet banking channels, the preference for branch banking experienced a noteworthy increase.
While the increased staffing levels have led to higher operating costs, with salaries and wages rising by 13.3% to Ksh117.6 billion in 2022 compared to Ksh103.8 billion in 2021, banks have effectively managed these expenses. The diversification of income streams allowed banking institutions to offset the increased staffing costs. As a result, salaries and wages as a ratio of income decreased from 16.5% in 2021 to Ksh15.8% in 2022, reflecting a lower increase in staffing costs compared to the increase in income.
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The Kenyan banking sector experienced a significant boost in its operating income, which improved from Ksh475.6 billion in 2021 to an impressive Ksh560.8 billion in 2022. This increase can be attributed to higher revenues from various sources, including a rebound in private-sector lending and non-interest-funded activities such as foreign exchange trading and trade finance. This remarkable performance showcases the resilience of Kenya’s banking sector and underscores its vital role in driving the country’s economic growth and development.
