Faulu Bank on the brink of collapse as the HR, MAY NYAGA, is accused of firing men and hiring incompetent female staff - She runs the financial institution like a kiosk (LOOK).

 

Thursday, June 13, 2024 - Faulu bank is reportedly on the brink of collapse due to mismanagement.

A disgruntled staff reached out to Cyprian Nyakundi and exposed the wrangles in the financial institution, blaming the Human Resource Manager May Nyaga of being incompetent.

Read the message.

Hi Nyakundi. Faulu Bank is on its knees. If you have money there get out fast! Faulu Bank is currently struggling. For many years the bank has been posting losses. 

Apollo Njoroge (former MD) tried to stabilize it a bit and it posted some profits before it was discovered that the numbers they posted were fake and had the Head of Finance then, Julius Tuliani, fired. 

Then the purge on the Executive Committee members began and one by one they went.

Finally, Peter Iha the Head of HR was exited and in came May Nyaga the current Head of HR. 

May made the bank sink further. She introduced contracts for Relationship Officers who earn a paltry 30K monthly salary on a one-year renewable contract. 

This made the Community Banking department collapse as community banking ROs were demoralized. Worse off, she has not been championing the interests and benefits of employees as she rolled back major wins for employees. 

Her legacy has been characterized by staff exits.

As it stands out, staff turnover at Faulu Bank is at 47% to 49%. This means that for every 10 people that join, the likelihood of 5 of them leaving in a month is high! As a result, there is no succession at all.

For instance, all the people who were performers have been forced out either through PIP or flimsy disciplinary proceedings.

Most of the men have had themselves slapped with s3xual harassment charges and forced out.

Many of these have their cases at the Employment and Labor Relations Court (ELRC) and most are winning against the Faulu Bank thanks to May Nyaga's incompetence.

May has become a practical male chauvinist besides her liking for whiskey. She literally is pushing out male performing employees and replacing them with incompetent, poor-performing female managers who don't have a clue about what managing a microfinance bank business is all about.

The net effect is the deep hole that Faulu Bank is in. Indeed, ask any staff and they will tell you that Faulu is down because of poor HR Policy application by May Nyaga.

Despite being an IHRM Fellow and an accredited Coach, this appears to just be on paper. Her warped interpretation of HR policy has cost the company, going by lawsuits by former employees she has been losing over time. As we speak there are rumors that local banks are after buying out Faulu.

Employee hiring has been halted across the branch network. Even sales staff are not being onboarded. As a result, customer growth is stunted with SME customers fleeing in droves. 

The check-off book sales which were the flagship product have collapsed and almost all check-off sales staff fled the company.

Most branches have downscaled in size and are now a shell of what they used to be. With May Nyaga in charge of HR, the company is now a shell of its former self.

What Faulu Bank is now known for is PR with impactless partnerships being signed for just for the head of business development and other head office idlers to be seen on social media. 

This is what has made Faulu rot as it is - PR. Go to Google search and search 'Faulu Bank' and all that comes out is just PR. Nothing of substance. 

And mark you, none of the partnerships bring out any business! What has remained there is just witch hunt, of course championed by May Nyaga the HR Head to exit people so as to cut costs. 

This toxic culture has cost many their careers. Of note, because of the poor performance, 80% of the staff now are on Performance Improvement Plan (PIP). 

The net effect is at the conclusion of the quarter, all who won't show improvement will be exited. And that's how

Faulu has morphed into a career-ending graveyard for many talented bankers. Where did Faulu go wrong? Its poor people management policies. 

They have been misapplied and manipulated by the Head of HR to institutionalize her evil desires and agenda. With Faulu Bank down, the best the customer can do now is to exit because staff that are there are demoralized and cannot offer personalized service as it used to be. 

For Faulu Bank to come up, May Nyaga should go. This should reach Old Mutual SA, the current owners of the Bank!

After all, hers has been a legacy of failures. She collapsed Letshego Kenya Limited then known as MicroAfrica then went to Copy Cat where again she crippled the firm. 

It would be interesting to see where she will go next and collapse!

The Kenyan DAILY POST.