At least 18 employees of former Housing Bank and 13 from Rwanda Development Bank (BRD) will lose their jobs after the latter finalised the takeover of the former, according to BRD’s top management.

Housing Bank has been employing 34 people and BRD will retain only 16 employees.

"Some employees from both banks will be affected by the move. However, we will follow the law and the affected workers will be compensated,” BRD’s Managing Director, Jack Kayonga, explained early this week.

He said BRD will also layoff 13 of its employees who will be replaced by the 16 recruited from BHR.

BHR’s takeover aims at transforming it into a mortgage re-financing facility, which will provide mortgage funds to other financial institutions.

Government says its objective is to achieve sustainable growth through diversifying the bank’s business base and make it more profitable.

BHR has been performing efficiently and it is evident from BHR’s financials. However, to enhance its contribution to the country’s real estate market, we find it inevitable that this acquisition is accomplished,” the Ministry of Finance said in a statement recently.

Rwanda needs between 20,000 and 25,000 residential houses every year but only about 300 housing units are provided.

Before the takeover, BRD was one of the shareholders in Housing Bank with 250 shares valued at Rwf25m representing 3.21 percent shares. The government of Rwanda was the biggest shareholder in the bank holding 69 percent shares valued at Rwf537.5m.

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