The financial struggles facing popular microfinance firm Mwananchi Credit are no longer news.
The latest development saw the company close its office at Pension Towers and move all operations to Ecobank Towers. According to a notice posted on the company’s social media pages, all services previously offered at Pension Towers will now be conducted from the 10th floor of Ecobank Towers.
For the past month, the microfinance institution has reportedly been facing serious financial difficulties, leading to the dismissal of a large number of employees.
Staff members who spoke on condition of anonymity claim the company’s situation has worsened to the point where even paying salaries has become a challenge.
“Some time back, CEO Dennis Mombo told us that the company was undergoing restructuring and that no jobs would be affected. It came as a shock to us when those claims turned out to be untrue, as he later dismissed most staff without any notice,” said one employee.
Another senior staff member alleged that the CEO has developed a tendency to dismiss employees who question management decisions.
“He seems very stressed when you look at him. The company is not doing well at all. These days his main work appears to be firing and hiring. We see new employees coming in almost every day,” said the staff member, who also requested anonymity.
Employees say the constant staff turnover has also begun to erode customer confidence, as loan files are frequently handled by different officers.
“Following up on customer loans has become very difficult. Today you handle a file, and tomorrow you are fired,” another employee said.
This is not the first time the company has made headlines for the wrong reasons. Earlier this year, staff members publicly complained about delays in salary payments at a time when the country continues to face tough economic condition.
