Nairobi — Digital lending platform Tala has let go 28 staff in the customer operations department amid a high rate in loan repayments.
This follows a 95 percent increase in customers choosing and managing their loan repayments, cutting workload in the department.
"This represents less than 3% of Tala's workforce, and Tala shall redirect these resources towards market expansion and product development. We recognize transitions like this impact our employees, and we are committed to supporting them through this process with dignity," Tala said in a statement.
Earlier, a letter seen by Capital Business from Inventure Mobile Ltd., which operates locally as Tala, addressed to the Ministry of Labour and Social Protection, indicated that the digital lender planned to send 55 employees' home amid a decline in customer service volumes, rendering some positions superfluous.
Some of the affected roles were customer recoveries advocate (23), senior customer recoveries advocate (8), process analyst (1), and customer care advocate (10), among others.
"In accordance with the provisions of Section 40 of the Employment Act, 2007 (the Act), we hereby notify you that Inventure Mobile Ltd (the Company) proposes to declare the positions which are currently held by the respective employees as set out in the Schedule to this letter (the Employees) redundant," Tala Kenya General Manager Annstella Mumbi announced in the letter.
"We have informed the Employees of this development and accordingly, have simultaneously with this letter also issued to the Employees official notices of the proposed redundancy to mark the start of a thirty (30) days consultation period with the Employees," it added.
"This notice will be in effect for a minimum of 30 days, as mandated by Kenyan law. Throughout this process, we are committed to ensuring fair and lawful treatment of all employees."
Consequently, Tala announced severance packages for affected employees, including salary payment up until the last day of employment, one month's salary payment in lieu of notice, and an ex gratia payment package, among others, in accordance with the Employment Act 2007.
