KCB wins Sh1bn contract to administer staff loans on behalf of CIC Insurance

Corporate News

CIC group chief executive Tom Gitogo. PHOTO | FILE 

By STELLAR MURUMBA

KCB Group has won a deal to handle the assessment and disbursement of staff loans worth Sh1 billion on behalf of financial services provider CIC Insurance Group.

The insurer, with a staff count of more than 500, has previously been administering the loans but says that it now wants to concentrate on its core business of providing insurance and related services.

The biggest bank in Kenya by assets will also take over existing mortgages and car loans held by CIC staff, under its car and mortgages schemes.

“Our core competence is providing insurance and related services, and this is where we would like to excel,” said group chief executive Tom Gitogo.

“By partnering and outsourcing non-core services to like-minded organisations such as KCB, we greatly improve our efficiency.”

Mr Gitogo was speaking in Nairobi on Wednesday during the signing of the deal.

Employers offer flexible staff loans not only to motivate employees but also as bait to attract and retain the best talent.

Under the deal, the CIC staff will enjoy negotiated loans of six per cent per year on a reducing balance to buy houses and cars.

KCB said the partnership “conforms” to its strategic way of doing business and it goes a long way in deepening financial inclusion.

“We believe that it is through partnerships that we can build sustainable businesses for tomorrow’s generations” said chief executive Joshua Oigara.

“As a bank, we have gone out of our way to ensure that we provide our customers with banking products that correspond to their day-to-day needs while at the same time building a culture of trust.”