Digital lender Branch has reduced its workforce in Nigeria and Kenya despite reporting a global profit of $30 million for the 2025 fiscal year. Employees were informed of the sack during a global all-hands meeting on April 17, followed by immediate termination emails.
Branch Confirms Layoffs in Nigeria and Kenya
The microfinance institution with international operations laid off an unknown number of employees in both countries as part of moves to optimize operations. According to workers, the announcement was made during a meeting, and termination emails took effect the same day.
An excerpt of the internal email read: "Your last day of employment will be today, April 17, 2026." An ex-employee claimed workers did not expect job cuts, stating: "We were aware of the company-wide meeting, but we didn't know that people would be laid off." Affected workers had their company systems and work email addresses disabled shortly after the meeting.
Branch Denies Financial Distress
Branch denied that the layoffs were due to lack of cash or pressure to secure new funding. A statement from the company read: "This was not a decision driven by financial distress. Both our Nigeria and Kenya markets were profitable last year, and Branch International declared a global profit of approximately $30 million for the 2025 financial year." The company added that its African operations were doing well, with substantial cash on hand and no debt across its African entities.
Severance Packages for Affected Staff
Despite the reduction in staff strength, affected employees received lucrative severance packages. The terms included at least four months' salary, notice pay, payment for unused vacation time, and health insurance maintained through the end of 2026. The company said: "Employees impacted by this decision were provided with extremely generous severance packages, and we are grateful for their contributions to Branch."
Branch's Background and Growth
Branch was founded in 2015 and rapidly became one of Africa's biggest app lenders, offering digital banking services and loans through smartphones in Kenya, Nigeria, Tanzania, and India. It has served over 13 million customers, disbursing over 54 million loans worth more than $1.8 billion. Crunchbase reports that Branch raised over $274 million across several funding rounds from investors, including Visa and Foundation Capital.
In contrast, Nigerian banks have been increasing staff salaries. An analysis of 2025 audited financial statements of Access Holdings, United Bank for Africa (UBA), Zenith Bank, and Wema Bank shows that the four lenders increased their combined workforce by 12.75% to 33,675 employees, while total wages and salaries rose 27.49% to N1.05 trillion.
