Tuesday, December 10, 2024
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Former Standard Group employees demand payment of their dues amounting to millions of shillings

By Faith Anene, Nairobi

In a poignant and urgent appeal, over 400 former employees of the Standard Group Plc are rallying for solidarity in their fight against what they describe as “rogue employer” and calling for payment of their dues.

These individuals, once part of the famed media house, are now facing a harsh reality: unpaid redundancy dues, unremitted statutory contributions, and mounting financial distress.

Their plight has led them to make an impassioned plea for support from the public, Labour Rights groups, corporations, and international organizations.

The Standard Group, known for its media presence through The Standard newspaper, Standard Digital, KTN, Radio Maisha, and Spice FM, has been accused of failing to honor commitments made to its employees.

Despite repeated promises, the company has not paid out redundancy dues nor remitted contributions to the staff SACCOs, Kenya Revenue Authority (KRA), National Hospital Insurance Fund (NHIF), and the National Social Security Fund (NSSF). These failures have left former employees struggling to meet basic needs and secure their financial futures.

A former employee shared, “We have written numerous letters to the main shareholders, Gideon Moi and Joshua Kulei, the Board, CEO, CFO, and HR, seeking to know when we will be paid our dues. The management has been quiet and unresponsive.”

The situation is exacerbated by the fact that the company has failed to remit PAYE to KRA for several months, dating as far back as 2018. This has hindered former employees from obtaining tax clearance certificates, an essential requirement for securing new employment.

The crisis at Standard Group has not been sudden. Over the past few years, more than 150 employees voluntarily left the company due to mounting challenges with late salary payments and unfulfilled promises.

“Years of failed promises have turned us from employees into beggars, pleading for what is legally owed to us,”~ former SG employee

Furthermore, redundancy exercises have resulted in over 300 layoffs, with the company failing to honor the severance packages it promised, especially for those laid off in July 2024.

Despite assurances of a one-year redundancy payment plan, no payments have been made as of November 2024, leaving former employees in financial turmoil.

“Years of failed promises have turned us from employees into beggars, pleading for what is legally owed to us,” lamented one of the former employees.

The effects of this financial hardship have been devastating. Many ex-staff are facing evictions due to unpaid rent, struggling with school fees for their children, and unable to afford necessary medical care. Some have turned to casual labor just to make ends meet.

The Kenya Union of Journalists (KUJ) has condemned the actions of the Standard Group, calling them “serious violations of labour and human rights,” and is urging both local and international organizations to take action.

A particular concern has been the freeze on SACCO withdrawals, which has left members unable to access their savings for critical needs. Despite an intervention by the Commissioner for Co-operative Development (CCD), SACCO members remain in the dark about when they will be able to recover their funds.

The former employees are now calling for urgent intervention from the Kenya Government, the Capital Markets Authority (CMA), the Retirement Benefits Authority (RBA), and international human rights organizations.

They are demanding full payment of salary arrears from 2023 and 2024, the immediate settlement of redundancy payments, and the remittance of all withheld deductions to KRA, NSSF, NHIF, and SACCOs.

Additionally, they are appealing for the CMA to act swiftly by delisting Standard Group from the Nairobi Securities Exchange until the company meets its obligations. They are also calling for the Ministry of Labour and the Retirement Benefits Authority to ensure accountability and transparency.

The former staff are asking for what they are rightfully owed, and their fight is one for corporate accountability and the protection of workers’ rights.

 

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