The Standard Group management, led by Chief Executive Officer Marion Gathoga-Mwangi, was on Thursday forced to address former employees who had camped at the company’s offices to demand their dues. At the meeting, which was held under a lot of tension with fears of disruptive demos, Mrs Gathoga-Mwangi enumerated the numerous challenges facing the company, including delays in payments owed to both current and former employees.
Mrs Gathoga-Mwangi emphasised her commitment to maintaining open communication, noting that the company finds itself in a difficult financial situation. She reassured former employees of the company’s commitment to settling outstanding dues, noting that recent delays were caused by unforeseen circumstances that disrupted prior payment plans.
To address payment delays, both parties agreed to form a working group consisting of representatives from both sides. The seven-member team includes Nick Gekobe (Legal), Tom Japani (Radio), Christine Mucheke (Circulation), Jamleck Kuria (Courier), George Okoth (Print), Ben Omollo (Strategy), and Stephene Kahiga (Commercial). The team will act as liaisons between the company and former staff, ensuring transparency and open communication as they work towards resolving payment issues.
For former employees who have been fighting in the dark, this has offered a ray of hope. Even then there was no clear payment plan, only promise if and when the company’s revenues stabilize. In August, an employee threatened to take his own life if his dues were not paid. In a video circulated on social media, Zanji Mukenya was heard saying he would leave the Standard Group premises in two ways – with his money or lifeless.
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Speaking at the meeting, Mrs Gathoga-Mwangi acknowledged that the Standard Group is grappling with industry-wide disruptions that have reduced revenues and expanded debts, including significant amounts owed by major clients such as the government. “The Standard Group has been navigating through a difficult financial landscape for a while. Our commitment to settling dues for both former and current employees remains unwavering. However, several challenges have hampered our progress in this regard,” she said.
Standard, Kenya’s oldest but second biggest newspaper company, has faced persistent financial hurdles over the past seven years, reporting losses consistently. Mrs Ms Gathoga-Mwangi noted that the company is owed billions of shillings, including Ksh1.2 billion by the Government of Kenya, and highlighted ongoing efforts to recover these funds.
Despite operating in a tough economic environment, she reaffirmed the company’s dedication to ensuring its survival and stability. Looking forward, she outlined a vision for recovery centred on digital transformation, product innovation, and revenue diversification. “We remain steadfast in our focus on digital transformation, product innovation, and revenue diversification to meet market demands. These efforts aim to drive steady revenue generation and ensure business sustainability,” she said, adding that the financial strain, compounded by substantial debts, has impacted operations and staff remuneration.
She also outlined measures to enhance efficiency and stabilize operations, including fundraising among shareholders and exploring innovative revenue sources. “Our team continues to produce competitive media content despite the harsh economic environment, a testament to their dedication and shared commitment to our goals,” she noted.
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