The disgruntled ex-staff are urging a boycott of all Standard Group products until their grievances are resolved
More than 400 employees of Standard Group Limited have appealed to members of the public to boycott all products of the media house, urging labour rights organizations, and stakeholders as well to join them in demanding accountability and corporate responsibility from their former employer.
The products of the Mombasa Road-based media house include The Standard newspaper, Standard Digital, The Nairobian, KTN, Radio Maisha and Spice FM. The more-than-a-century-old media giant has been accused of failing to pay redundancy dues and remit statutory contributions to the Kenya Revenue Authority (KRA), National Social Security Fund (NSSF), and staff SACCOs.
The disgruntled ex-staff are urging a boycott of all Standard Group products until their grievances are resolved, additionally appealing to Labour Rights groups, Kenyan and international corporations doing business with the Standard Group, shareholders and advertising agencies to pile pressure on the Standard Group board and management to pay its former and current employees and 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 over the same issue. They, in a statement obtained by Viral Tea, revealed that Standard Group owes former employees millions in dues, which they accused their former employer of reneging on payment despite making formal commitments.
Inside Standard Group newsroom. /STANDARD DIGITAL
The former staff demanded urgent government intervention to hold the listed media house, its shareholders and Board members accountable for unpaid dues, unremitted contributions, and violation of human rights.
“We have written numerous letters to the main Shareholders, 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,” lamented one former employee.
In addition to their unpaid dues, the former employees are raising concerns over unremitted contributions to the staff SACCOS, NSSF and KRA. “The last time remittances were done to NSSF was in September 2022. 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,” another one argued.
Years Of Failed Promises
The crisis follows four years of instability at Standard Group, with the once acclaimed media house losing over 150 employees through voluntary resignation after the company started facing challenges with paying employees on time and remitting their statutory dues.
Despite promises to pay what is owed to them, the former staffers lamented that nothing has been forthcoming and they have been turned into beggars pleading for what is legally owed to them. The ex-staffers also cited several redundancy exercises carried out by the media house 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. As of November 2024, neither the first nor the second instalments have 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,” added the statement.
“We have been patient, but all we get are empty promises. The former CEO Orlando Lyomu left in July 2023 then came Mr. Joe Munene who was acting for over a year. He made promises that never materialised. Now we are dealing with a new CEO called Marion Mwangi, who is also non-committal on when our dues will be paid. Some of our former colleagues have gone to courts and some of us are still following up with the Finance department,” lamented a former employee who did not wish to be named.
Tales Of Despair
The former Standard Group staff shared tales of despair and financial hardship, with a number having faced evictions due to rent arrears and others cannot afford to pay school fees arrears to get clearance for children in private schools to join public schools.
Additionally, many of them are revealed to be struggling to put food on the table while those with underlying health conditions cannot afford essential drugs and diet. Some have resorted to construction jobs and other casual work to buy food for their children.
The Kenya Union of Journalists (KUJ) 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.
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.
One SACCO member shared, “We’ve been in the dark too long. Many of us depend on these funds for crucial expenses like healthcare and school fees. While we appreciate the Commissioner’s involvement, we need to know when we can expect our money.”
Entrance to Standard Group Limited offices along Mombasa Road. /NAIROBI NEWS
As a listed company at the Nairobi Securities Exchange, the former employees are calling upon the 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:
- 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.
- 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.
- Full and prompt payment of dues owed to former employees who left the company voluntarily or through voluntary early retirement and redundancy.
- 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
- 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.
“What stops your employer from doing the same?” they ask, emphasising the broader implications of unchecked labour violations in Kenya.
As the affected individuals await action, they continue to highlight their stories of despair, hoping that their collective voice will spark change in Kenya’s corporate governance landscape. Standard Group has yet to issue a statement addressing their sentiments at the time of publishing this article.
