Connect with us

Business

Trouble Brews At Kenya Commercial Bank

Published

on

KCB Group CEO Paul Russo

Trouble is brewing at the Kenya Commercial Bank over the new managing director Paul Russo’s leadership style which has angered both junior and senior management.

KCB Group appointed Paul Russo as the new chief executive officer, starting Wednesday, May 24 2022 after the departure of CEO Joshua Oigara who was forced out by the board even before his time to retire came to an end in December 2022.

Some senior management individuals have confided to Kenya Insights that Paul Russo has been on a witch-hunting mission especially targetting senior management individuals as he strategizes to place his people in positions of stealing from Kenya’s biggest bank.

“He has been witch-hunting some senior management guys. He should be focussing on bettering the bank and work environment and not plotting on how to remove so and so from this or that position” Complained one source familiar with the matter.

Before being CEO, Russo served as head of Human Resource at KCB before he was moved to national bank as CEO after it was acquired by KCB.

During his stint as head of HR at the KCB, Many employees complained about his oppressive policies that saw employees become poor and poorer.

In December 2022, the High Court ordered KCB Group to pay 28 former employees more than Sh115 million in a precedent-setting decision on unfair labour practices for keeping casuals on contract terms for more than three years and paying them less than permanent staff.

The former employees whose jobs were terminated in December 2021 sued KCB Group accusing the lender of discrimination for paying them less compared to those hired permanently, yet they perform the same jobs.

Related Content:  M-Pesa Set To Lose Its Mobile Money Market Dominance Advantage In Proposed Law

Justice Monicah Mbaru said where an employer engages in unfair labour practices such as discrimination, they should be redressed by being paid damages.

“General damages are due to the claimants for loss and damage suffered for being placed under terms and conditions of employment less favourable contrary to negotiated terms and conditions to unionisable employees of the respondent (KCB),” the judge said.

Most of these poor labour practices were made possible by Paul Russo while at the KCB as head of Human Resource.

More details about the brewing saga will be reported by the kenyan insights in a few days


Kenya Insights allows guest blogging, if you want to be published on Kenya’s most authoritative and accurate blog, have an expose, news TIPS, story angles, human interest stories, drop us an email on tips.kenyainsights@gmail.com or via Telegram

Click to comment
Advertisement
Advertisement

Most Popular