SAVE OUR BANKING INDUSTRY BEFORE ITS TOO LATE

By Reagan Nyadimo

The banking sector has not bounced back strongly from the great recession.  Inasmuch as Kenya remains an example in financial inclusion new regulations slapped on the industry following the collapse of the 3 lenders continues to haunt financial Institutions. In fact, as country we risk financial meltdown.

As we speak, the Kenya’s banking industry has stagnated in the first 3 months of the year 2016. This slow down which has been supported by decrease in gross loans, banking assets and stagnant customers’ savings signals eroded confidence level in the sector.  In my opinion, this is due to the unprofessional handling of the Chase bank which was closed due to run of deposit. 

The effect of this ground shaking disruption in the Industry which have contributed to flight of deposits to banks perceived as “stable” have forced small lenders to halt lending.  This temporary action to avert liquidity crunch by the small lenders have led to massive losses in interest income.  With the look of things, this is not just small lenders problem.We are to see more of these in the coming days as the reality of the enforcement of regulations begins to weigh down on the industry.  

The sad reality is that as the industry glares into Q3 with this nasty hangover, massive layoffs will be inevitable. This coupled with lack of credit to finance development will definitely have negative effect on our GDP.

There is a wide spread panic in the industry which if not acted upon in good time, we will have ourselves to blame in the coming months. 

The writer is former Assistant business analyst and currently private sector advisory leader in Kenya.

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CLAUSES IN JUDGE JUSTICE ABUODHA RULING THAT WILL PRO-LONG TEACHERS STRIKE

BY REAGAN NYADIMO

Labour relations court Judge Justice Abuodha’s ruling may have given reprieve and renewed hope  to thousands of school going children but the tussle between the Kenyan teachers’ and the government is far from over. The 25/09/2015 Friday morning ruling contains some statements and judgments that only worsen the near politicized teachers strike.  Worse off, some of these statements have been the reasons the government and the TSC have been banking on to intimidate teachers. The hard-line taken by the teachers union barely 2 hours after the court ruling justifies the porous ruling that failed to peg blame on the two parties.  It will therefore not be surprising if the teachers unions use the following clauses in the judgment to prolong their strike.

1.       Teachers strike is within the law.

This has been the sole reason the government and TSC went to court following an earlier ruling that termed the teachers strike “unprotected”.  It was based on this ruling that teachers employer hauled threats to striking teachers.  The aftermath that saw teachers issued with show-course letters and their September salaries held. The president in his 20^th September 2015 address to the Nation rode on the same judgment to urge teachers to resume their duties.

Now that the ruling has been made clear, it remains unclear who will blink first in the ongoing payment row. 

2.       Government in contempt of Court Order.

‘Won’t pay and can’t pay’ proclamation in which Justice Abuodha sited as unreasonable and a sign of defiance to court orders on the side of the government  is another bombshell awaiting the government.  This ruling comes at a time when teachers union had threatened to file a case to have their employer arrested for failing to honor a court order. 

3.       Government Failure to give audience to teachers

The 25/09/2015 Justice Abuodha ruling blamed the recurrent teachers strike to the previous Kenyan governments including the current regime. The ruling noted that the Kenyan governments have failed to give an ear to the teachers’ woes.

With the current happenings and the near politicization of the teachers’ strike that is slowly closing avenues for sober negotiations; it is evident that having lasting solutions for the recurrent teachers strike will remain a pipe-dream.

The unwillingness to have the government honor their side of bargain or engage directly with union leaders to have this embarrassing strike closed is an answer to the reason why the teachers strike may take a while. 

Way forward

Government is already in court contempt and teachers should not follow suite. It will therefore be prudent if teachers obey court order and resume their duties to allow our children to sit for their examinations as their union leaders sit for further negotiations with the government.

Failure to reach an agreement should lead to an automatic strike since teachers will have more powers over the government. 

Reagan Nyadimo

An assistant Business analyst

Jamii Bora Bank.

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HOW I SUCCEEDED IN LANDING A LUCRATIVE JOB WITH ONE OF THE KENYAN’S FASTED GROWING BANK AND LESSONS GRADUATE CAN LEARN FROM MY EXPERIENCE

 

Kenyan graduates have continued to receive heavy criticism from the corporate world despite efforts by Universities to match their skills with that of the market needs. This has not made things easier for thousands of graduates whose applications continues to be rejected by their dream employers. The end result is a population of educated yet frustrated young people full of bitterness.

 As the number of universities continue to grow in Kenya without due consideration on the plight of thousands of frustrated graduates, the following tips can help students to avoid frustrations experienced by the graduates’ hours after their graduations.

  1.Get an internship while still in Campus

Hustling for a job without experience is one of the biggest mistakes graduates make. Most companies prefer employees with a little experience in their areas of specialization. Kenyan market have become very competitive and companies have set aside little funds to train graduates. This leaves space for limited number of graduates to be absorbed into the available vacancies with thousands being locked out. On the contrary, little experience will make you stand out from the crowd and it will make it easier for a company to pick you to reduce the cost of training.

  2.Do not wait for jobs to be advertised

The cost of advertisement have reached roof top and most companies would rather do internal job advertisement than external ones. The headache of handling bulky applications, time and manpower cannot be overemphasized. Most companies have therefore resorted to cost cutting measures in recruiting. One of the most notable ones is the sharing of Human Resource emails on their websites for interested candidates to apply for future considerations. This is the same database that companies refers to incase of a vacant position. Take your time to visit your dream employers company’s website and leave your application. In case it is an email, drop your CV without attaching any documents unless instructed to do so. Ensure your subject line remain: APPLICATION FOR INTERNSHIP as it is easier for the HR personnel to single you out.

  3.Begin an early search. As early as beginning of fourth year.

Do not be in the bandwagon of those students who wait after graduation to begin job search. After graduation, companies look for experience and there is so much expectations from employers. There is also the category of students who begin to work hard in their final year. The caliber of these students waste a lot time in their 1^st, 2^nd and 3^rd years hoping to recover the time lost in the final year. With the grading system in most campuses, the final year’s grades have very minimal effect on the class.

GPA is built in 1^st, and 2^nd years of your college life. Use the 3^rd Year to get internship and fourth year to begin forming Networks and listing names of your dream companies in readiness to begin sending your updated CV.  

  4.Have an update CV

Have your updated CV as early as Second year. Look around the campus or college premises for the best formats that will attract the attention of your employer. It is easier to get different format of CV template while still in campus as opposed to after you have left campus. It is also cheaper to find friends who will assist you come up with the best wordings for your CV while still in campus. You can seek help from career office to help you make a good CV. Ensure you CV is 3 paged with clear outlines of your experience, grades and 3 referees. Exclude names of your former primary and High school teachers and lecturers who rarely visit their emails and pick phone calls.

  5.Let payment be the last thing in your mind while applying for internship

Most of students have turned down internships from various companies because of lack of remunerations. In fact, some have spoilt their chances of joining their dream companies because they are so obsessed with money and they don’t hide it during their interview session. Once employer notices that you are interested in payment not experience, they will not consider you for a position even if they were to pay you. Put aside you pride and grades and go for experience rather than payment. Humility is key.  

Writer is the managing editor writers Guild Kenya and Assistant Business Analyst at Jamii Bora Bank.

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