Watu Credit, a financial services company popular in Kenya for offering loans to low-income clients, has recently come under scrutiny over alleged unethical practices in its employee redundancy process.
The company, already facing criticism for other operational issues, is now being accused of nepotism and favoritism in its layoff procedures.
An anonymous employee reached out to activist Cyprian Nyakundi, claiming that the company’s redundancy efforts were unfairly biased.
The employee asserted that certain departmental heads without adequate credentials have allegedly pre-determined who would be laid off.
This predetermined list is said to be based on personal biases rather than professional criteria, placing those without strong connections within the company at risk.
The employee expressed concern that decisions on who gets to stay are influenced by “reliability” as interpreted by specific managers, which can create an unfair advantage for favored employees.
This controversy isn’t isolated.
Watu Credit has faced other allegations recently, especially from the Kenyan Senate. For example, the company has been under Senate investigation due to mysterious cases of “disappearing” motorcycles, often reported missing just before customers complete their loan payments.
The company’s alleged high repossession rates and accusations of asset mismanagement have sparked further distrust among its clients and policymakers.
Senators have voiced concerns that Watu Credit’s methods may exploit vulnerable customers and are calling for a special investigation into the firm’s practices.
These issues raise questions about the ethicality of Watu Credit’s operations and management decisions, particularly as they assert compliance with legal redundancy standards.
Observers argue that without transparency and accountability, Watu Credit’s claims of fair redundancy practices appear dubious.
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