A popular Kenyan supermarket is on the spot for mistreating its employees across various branches in the country.
The alarm has been raised by Kisii County Senator Richard Onyonka, who has sought a statement from the Standing Committee on Labour and Social Welfare regarding the labour practices and welfare of employees working for Shivling supermarket.
Speaking on Thursday, October 31, Onyonka noted that the supermarket was deducting employee salaries over stock variances.
Additionally, he said that the supermarket was accused of making employees work extended hours without compensation.
Also Read: Carrefour Supermarket Slapped with Ksh 1 Billion Fine
Other Accusations Against the Retailer
At the same time, Shivling supermarket management has been accused of racial discrimination against its Kenyan workers.
Other accusations include non-remittance of statutory deductions to the National Health Insurance Fund (NHIF), and National Social Security Fund (NSSF) for its employees.
Consequently, Senator Onyonka wants the committee to table the most recent audited report on wages and overtime payments made to employees of Shivling Supermarkets in Kisii County and nationwide.
Onyonka has requested the Committee to provide a report on the terms of employment, remuneration, and policies that govern the general welfare of employees.
The supermarket is more than 20 years old in the Kenyan market, with branches in Migori, Homa Bay, Kericho, Kisii, Nyamira, and Kisumu.
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Previous Cases Involving Supermarket
In December 2023, the Competition Authority of Kenya (CAK) penalized Carrefour Supermarket Ksh1.1 billion for abusing its buyer power over its suppliers including Pwani Oils Limited.
According to the Competition Authority of Kenya, the popular supermarket was accused of unfairly exploiting small and medium-sized enterprises (SMEs).
However, CAK noted that the supermarket in response, denied exerting buyer power against Woodlands or treating them unfairly.
The state agency further claimed the retailer admitted to issuing standard-term supply contracts with clauses facilitating the deduction of rebates and deducting the same.
“The Authority pursuant to investigation penalised Majid AI futammi which trades in Kenya under the brand name Carrefour a total of 1,108,327,873.60 for separately abusing its superior bargaining position over two \of its suppliers,” read the statement.
Consequently, the retailer was ordered to refund Ksh.16.7 million in irregular rebates and expunge all clauses in its contracts that facilitated abuse of buyer power.
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