1 Revision on Rate of Interest on Interest earning GBP Deposit The ROI on interest earning GBP Deposit were revised and shared HO/FIN/28/531 11.06.2020 with branches

2 Revision of Preferential Rates Offered on Term Deposits along with Modification of Amount Segment – Kenya Shillings.

The Preferential ROI offered on Term deposits were revised and shared HO/MD/28/ 532 11.06.2020 with branches

3 Additional precautionary measures and caution for Corona Virus (COVID – 19) and deployment of staff The ongoing COVID-19 precautions to be followed by branches were advised HO/MD/28/533 11.06.2020

Baroda JamiiISSUE 08: AUGUST 2020

BEST BANK IN KENYA

MESSAGE FROM MANAGING DIRECTORThink Business Banking Awards 2020

IMPORTANT CIRCULARS ISSUED BY BANK

Dear Colleagues,

I hope all of you are doing well and taking care of yourself and your near and dear ones during this trying time. The COVID-19 pandemic has taught us many harsh lessons and has drastically changed human behavior. We had to change the way we move, we mix, we pray and we work. But, thankfully we are fortunate to be part of an institution like Bank of Baroda (Kenya) Ltd. that has always stood beside its employees at every situation.Given the current times, the world today is thriving with an unforeseen issue. The pandemic has changed the way we’ve functioned all these years. But this did not stop the bank from moving ahead with persistence and determination. We answered every challenge with a change. Change in our perspective and change in our solutions. Today, our services continue to excel but we keep safety at the forefront. Today, we’ve also adapted to the ever-changing technology and are trying to make banking effortless and customer friendly.

Amongst all these, I take great pleasure to inform you all that our Bank for the first time has bagged -4- awards at the prestigious Think Business Banking Awards 2020 which was declared on 23rd July 2020.

I extend my sincere wishes to all of you as this success is a collective effort of the whole team. Bank has been serving our valued customers for the past six decades and accolades like these are a testament of the persistent effort and dedication put in by all of you. It would be my request to all of you to publicize this achievement and to let our customers know about it. The customers are the foundation of any businesses success and they too shall feel the pride of banking with such an organization.

Achievements like this will encourage all of us to work hard and maintaining such successes is a challenge we must all take.

Thank you.

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KENYA ECONOMY INSIGHT

113TH FOUNDATION DAY OF BANK OF BARODA

RISK MANAGEMENT AGAINST “DEATH BY A THOUSAND CUT.”

The Kenyan economy had a deteriorated second quarter after growth slumped to a two-and-a-half-year low in the first quarter as strict social distancing measures and widespread travel restrictions undermined the services, tourism and transportation sectors. The Merchandise exports dived at the sharpest pace in nearly a year in April, and are likely to shrink further in May–July amid eviscerated foreign demand. Moreover, containment measures curbed household spending and investment activity in Q2, with a weaker Shilling further exacerbating the downturn.

Against this backdrop, on 14 July, S&P Global Ratings revised the outlook of Kenya’s B2 credit rating to negative from stable, citing concerns over rising fiscal deficits and worrying external debt metrics.

Covid-19 is set to derail growth this year, although it is expected that the economy shall avoid recession as activity picks up in the second half of the year. Containment measures are set to curb domestic demand, while travel restrictions and depressed global demand will likely cripple the external sector. A likely second locust invasion further clouds the outlook. Economics analysts project GDP growth of 1.1% in 2020, which is up 0.1 percentage points from last month’s forecast, and 5.3% in 2021.

As of July 27, there were 17,603 confirmed COVD-19 cases and 280 deaths, implying a case-rate fatality of 1.6 percent. In July, thegovernment lifted the movement restrictions in and out of Nairobi, Mombasa, and Mandera counties and resumed domestic flights. The lifting of the movement restrictions and the resumption of passenger transport is expected to improve income-earning opportunities for households both directly and indirectly involved in this sector. However, poor households in major urban areas continue to face a reduced or total loss of income due to reduced economic activity. Continued low access to income is reducing poor households’ capacity to purchase sufficient food and many are experiencing Crisis outcomes.

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Our parent Bank - Bank of Baroda celebrated its 113th Foundation Day on 20th July, 2020. The Bank had started its illustrious journey on 20th July, 1908 at Baroda, India. It is noteworthy that Bank's first overseas Branch was opened in Mombasa, Kenya

in 1953.Today Bank of Baroda has presence in over 20 countries apart from India spread across the five continents. In Africa the

major presence of the Bank is in Kenya, Uganda, Tanzania, Botswana, Seychelles and Mauritius. It has also got stake at the Indo-Zambia Bank at Zambia.

Every year the Bank’s Foundation Day is celebrated with great fervor across the world with various activities being observed by Banks staff members. This year due to the COVID 19 Pandemic most of the celebrations took place on Bank’s digital platforms in Facebook, Twitter, Instagram, LinkedIn and YouTube. From Kenya also our staff members took to these platforms to express their feelings and wish for the Bank.

According to wisegeek.com, ‘death by a thousand cut’ - a surreal expression also referred to as ‘Creeping normalcy’ - would refer to failure that occurs as a result of small problems.In a bank, situations that may lead to creeping normalcy and respective risk mitigation are as outlined in the table below.

1 Repeated complaints by the same customer leading to a feeling that this customer just keeps on complaining for nothing

Loss of customers as the customer may spread the word that this is non-caring bank; fines by CBK for not adhering to consumer protection guidelines.

Ensure each and every customer’s complaint is handled as per timelines set out by CBK consumer protection guidelines, which is 7 days for resolving a customer complaint.

2 Consistent 5-10 minute lateness in reporting to work

Breakdown in processes especially where a staff output is the input to another staff’s role. For example, late opening of the cash vault will lead to late serving of customers by tellers.

Compliance to HR policy’s stated reporting time.

3 Few work breaks in form of not taking leave due to exigencies at work

Burn-out and eventual inefficiencies and errors at work due to poor work wellness balance

Use of leave days as per HR policy.

Creeping normalcy or the risk event Failure Mitigation

In conclusion, it only takes a small leak to sink a whole mega ship.

David KilonziHead Risk Management

LASTING RELATIONSHIPS WITH CUSTOMERSH

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Attracting new customers may be rewarding, but it also often involves a lot of hard work and expense. The good news is that costs associated with repeat business are, generally, significantly lower. 70% of companies say it’s cheaper to retain a customer than acquire one, while others have suggested that the cost of acquiring a new customer can be as much as seven times more expensive.

By targeting existing customers with a demonstrable interest in your product and willingness to buy it you’re giving yourself a much stronger chance of making a sale. Studies have proven that the probability of converting an existing customer is 60-70%, whereas the likelihood of converting a new prospect is only 5-20%.

Therefore, powerful customer relationships are essential for business success. But, they aren’t built overnight. Just like personal relationships, it’s important to cultivate and nurture customer relationships. When organizations develop strong relationships with their customers, it can lead to loyal clients, positive word of mouth and increased sales.

On the other hand, while meaningful relationships require time and effort to build, they can fall apart quickly. Relationships taken for granted deteriorate in flash. The key philosophy to remember is that strong relationships are built around making the other person feel important. When you accomplish this on an ongoing basis, success will follow.

Friends, last issue we took up a challenge of drinking minimum 8 glasses of water daily and I hope all of you can feel the benefit of it and inculcate it into your daily routine. This time brace up for another challenge.

EAT LESS SUGAR, YOU’RE SWEET ENOUGH ALREADY!!

Do you struggle letting go of sugar? It might be hard at first but NOT Impossible.

Just remember:Eating an excessive amount of sugar can lead to a greater accumulation of fat, which may turn into fatty liver disease, a contribution to diabetes, which raises your risk for heart disease. It can also raise blood pressure and increase chronic inflammation, which may lead to heart disease. Sugar also increases menstrual cramping & aggravates fertility issues. It affects -

Your BrainEating sugar gives your brain a huge surge of a feel-good chemical called dopamine, which explains why you’re more likely to crave a candy bar at 3 p.m. than an apple or a carrot. Because whole foods like fruits and veggies don’t cause the brain to release as much dopamine, your brain starts to need more and more sugar to get that same feeling of pleasure. This causes those “gotta-have-it” feelings for your after-dinner ice cream that are so hard to tame.

Your MoodThe occasional candy or cookie can give you a quick burst of energy (or “sugar high”) by raising your blood sugar levels fast. When your levels drop as your cells absorb the sugar, you may feel jittery and anxious (a.k.a. the dreaded “sugar crash”). But if you’re reaching into the candy jar too often, sugar starts to have an effect on your mood beyond that 3 p.m. slump: Studies have linked a high sugar intake to a greater risk of depression in adults.

Your Body WeightThis probably isn’t news to you, but the more sugar you eat, the more you’ll weigh. Research shows that people who drink sugar-sweetened beverages tend to weigh more and be at higher risk for type 2 diabetes than those who don’t. One study even found that people who increased their sugar intake gained about 1.7 pounds in less than 2 months. Excess amounts of sugar can inflame fat cells causing them to release chemicals that increase weight.

Benefits of quitting sugar - Lose weight

- Have more energy - Have more stable moods - Experience less joint & muscles pains - Increase Longevity - Reduced anxiety - Feel healthier, happier & more vibrant - Experience healthier skin - Promotes good sleep

A person following a no-sugar diet should also aim to eat whole foods. Processed foods are more likely to contain refined ingredients or added sugars. Diets that focus on whole and complete foods include vegetables, fruits, lean meats, poultry, or tofu, fish, whole, unprocessed grains, and legumes, nuts and seeds. Some people might choose to keep a small amount of dairy in their diet, such as plain yogurt, simple cheeses, and milk.

Mercy Achieng OwiyoHead Office

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LET’S HAVE SOME FUN

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SFind all the words in the word list relating to Kenyan Safari. Words are hidden in straight lines, going frontwards, backwards and diagonally.