Family Bank suspends staff tea in drastic cost cutting measures

Beginning Tuesday, only morning tea will be served.
Beginning Tuesday, only morning tea will be served. PHOTO/COURTESY
After slipping into the red in the six months to June, Family Bank has taken cost cutting to new levels by cutting down on tea for employees.

The mid-sized lender on Monday announced that it was cutting back on company supplied tea to reduce its costs in a move that surprised many.

“Beginning Tuesday, we have suspended company sponsored afternoon tea and only morning tea will be served. This is not a decision to be taken lightly; a lot of thought and debate went into making this decision.

“Every bit of cost cutting will help us get back to profitability,” read an internal memo signed by Muchane Ndungu, the bank’s head of procurement and logistics.

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Although Family Bank has not revealed how much it would save out of the new cost cutting measure, the lender hopes the idea – together with others – will bring it back to profitability.

The bank posted a Sh492 million net loss in the first half of 2017 compared to a net profit of Sh712 million a year earlier on reduced lending and lower interest income in the wake of a rate caps regime.

In October last year, the bank laid off an undisclosed number of employees in a restructuring plan that was intended to contain operational costs.