Faulu Microfinance Bank is once again embroiled in controversy, with fresh allegations of corruption and unethical practices surfacing from within its Human Resources department.
The embattled bank, already facing financial instability and a history of internal misconduct, is now accused of auctioning job positions to the highest bidders.
Accoridng to blogger Cyprian Nyakundi, Insiders claim that the bank’s HR leadership has been engaging in fraudulent recruitment practices, demanding money from job applicants in exchange for appointment letters.
Faulu Bank employees chatting. Photo: NTV Kenya Source: Facebook
The accusations, which have sparked outrage among employees and the public, further allege that the department orchestrated the mass retrenchment of top-performing staff while implementing glaring salary disparities among remaining employees.
According to sources, some employees in identical roles earn significantly different salaries, with a few pocketing close to a million shillings per month while others receive as little as KSh 150,000.
The shrinking workforce has also resulted in increased pressure on remaining employees, fostering a toxic work environment.
The bank’s Head of HR, Ms. Nyaga, has reportedly been suspended amid the ongoing scandal.
Faulu Bank officials signing a deal. Photo: Tuko Source: IG
Accusations against her include manipulating the hiring process, sidelining deserving candidates, and fostering an unfair pay structure.
Additionally, former employees claim she played a key role in dismissing staff unfairly while protecting a select few who now enjoy excessive remuneration.
Critics argue that Faulu Bank has strayed far from its founding principles, abandoning key traditions such as prayer devotions, which were once embedded in its policies.
A view of Faulu Bank entrance at one of its branches. Photo: The Star
There are also concerns that Old Mutual Group, the bank’s parent company, may reconsider its association with Faulu due to its repeated scandals and governance failures.
This latest revelation raises serious questions about the bank’s integrity and future, with employees and stakeholders calling for urgent reforms to restore public trust.
As investigations unfold, the spotlight remains on Faulu Bank’s leadership and its commitment to ethical business practices.
