MEDIANEWS

Unpaid Dues: Desperate Former Standard Group Employees’ Unusual Appeal to Kenyans

Former employees who claim to be owed millions of shillings have called on the public to boycott Standard Group products

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Standard Group ex-employees
In addition to unpaid dues, the former employees have raised concerns over unremitted contributions to the staff SACCOs, NSSF and KRA. (PHOTO: Tuko)
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Former employees of the Standard Group Plc have resorted to an unusual way to push their former employer to pay up: they are appealing to the public to show solidarity by boycotting products of the publicly listed media house.

The former employees, estimated at more than 400 and laid off over the past few years, have been unsuccessfully pushing management to meet their side of the bargain it committed to when it sent them home. The company has been offloading workers in an effort to reduce the cost of doing business and keep its operations afloat. However, paying up disengaged employees has not been easy, leading to a pileup of termination dues and statutory contributions even as it struggles to pay those still on its payroll.

Products of Standard Group PLC include The Standard newspaper, Standard Digital, The Nairobian, KTN, Radio Maisha and Spice FM. The disgruntled ex-employees hope a boycott by the public, if heeded, would arm-twist the management into paying up. This, though, is a tall order in a society where consumers care little about employee welfare.

“We have written numerous letters to the main Shareholders Gideon Moi and Joshua Kulei, Standard Group Board, Chief Executive Office, Chief Finance Officer and the Human Resource Manager seeking to know when we will be paid our dues. The Management has been quiet and unresponsive,” said one former employee at a meeting convened to strategise.

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In addition to unpaid dues, the former employees have raised concerns over unremitted contributions to the staff SACCOs, NSSF and KRA. “The last time remittances were done to NSSF was in September 2022,” they claim. “For KRA, it goes as far back as 2018, some months PAYE was not remitted, yet it was deducted from our payslips. This means we cannot get Tax Clearance Certificates to pursue employment opportunities which goes against our right to a livelihood.”

The former employees are also appealing to labour rights groups, Kenyan and international corporations doing business with the Standard Group, shareholders and advertising agencies to pile pressure on the  board and management to  “fulfil its legal and ethical obligations.”

Last week, the former employees appealed to the Kenya Government, Capital Markets Authority (CMA), Retirement Benefits Authority (RBA) and international human rights organisations to intervene. Standard Group reportedly owes former employees millions in dues, which it has failed to pay despite making formal commitments.

Years of failed promises

In the last four years, the once acclaimed media house has lost over 150 employees through voluntary resignation after the company started facing financial challenges.  The company has also conducted several redundancies that have seen more than 300 employees sent home and offered packages that it has failed to honour.

The most recent was July 2024, when the company promised former employees a one-year redundancy payment plan, with the first two instalments due in September, October 2024, respectively. As of November 2024, neither the first nor the second instalments had been paid, leaving former staff in financial distress.

In addition, Standard Group PLC is yet to pay outstanding salary arrears owed to former and current employees covering eight months: June, July, and August 2023, as well as March, April, May, June, and July 2024. “We have been patient, but all we get are empty promises,” they said in a statement.

Mr Orlando Lyomu, who was CEO from 2017, left in July 2023 and was replaced with Mr Joe Munene who acted for over a year. He made promises that never materialised, the former employees say.  Now they are dealing with a new CEO, Ms Marion Gathoga-Mwangi, who they say is non-committal on when dues will be paid. Some of them have gone to courts while some are still following up with the finance department.

Tales of despair

The former Standard Group staff share tales of despair and financial hardship. A number have faced evictions due to rent arrears and others cannot afford to pay school fees for their children. Many are struggling to put food on the table while those with underlying health conditions cannot afford essential drugs and diet.

The Kenya Union of Journalists (KUJ) has condemned Standard Group’s actions, describing them as “serious violations of labour and human rights,” and called on authorities and labour rights organisations to stand in solidarity with affected former and current employees.

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Members of the Standard and Network SACCOs are also suffering financial setbacks, as the staff SACCOs ceased lending and froze withdrawals over three years ago. In response to mounting frustration, the Commissioner for Co-operative Development (CCD) invoked Section 35 of the Co-operative Societies Act, Cap 490, issuing Agency Notices to the Sacco’s bankers to recover and release members’ funds. Despite this intervention, SACCO members are yet to receive a clear timeline for accessing their savings.

Call for accountability and action

As a listed company at the Nairobi Securities Exchange, the former employees have called upon CMA to urgently act by delisting the Standard Group and holding the main shareholders, Board members and management to account for the gross violation of workers’ rights. In addition, they are asking the Ministry of Labour, the Retirement Benefits Authority, the Commissioner for Co-operative Development, and other relevant authorities to act decisively and ensure accountability, including:

  1. Full and prompt payment of all salary arrears owed to former and current employees from June, July, and August 2023, and March through July 2024.
  2. Adherence to the redundancy payment plan as promised to recently laid-off employees, with the immediate settlement of instalments for September, October, and November 2024.
  3. Full and prompt payment of dues owed to former employees who left the company voluntarily or through voluntary early retirement and redundancy.
  4. Immediate remittance of all withheld deductions to KRA, NSSF, NHIF/SHIF, private pension schemes, and SACCO savings, enabling former employees and SACCO members to access the services and benefits they are entitled to under the Kenyan laws.
  5. Establishment of a clear timeline for SACCO Fund Recovery under the oversight of the CCD, providing SACCO members with transparency and a defined path to reclaiming their savings.

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Written by
KALU MENGO -

Kalu Mengo is a Senior Reporter With Business Today. Email: [email protected]

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