President William Ruto has criticized the ownership of The Standard Group over allegations that employees have gone for months without pay. The Standard Group, a listed media company is owned by the family of Kenya’s second president the late Daniel arap Moi.
In a statement on June 25, Ruto accused the Standard Group owner, whom he described as a billionaire, of hiding behind financial difficulties, while workers continued to report to work despite delayed salaries.
“Bro, the BILLIONAIRE you are; HIDING behind ‘debts’; forcing many months’ UNPAID labor slaving to defend your STANDARD headlines extortion GANGSTERISM driven by GREED; is HEARTLESS to loyal workers, INSULT to journalism and BETRAYAL to free media that STANDARD once belonged,” Ruto said.
In his earlier remarks, the president had emphasized that the right of media houses to criticize the government must be defended; however, the case shifted when the president called out the Standard Group for their publications on June 24.
Standard Group’s Finances
According to Standard Group’s audited results for the year ended December 31, 2024, the company had a loss of approximately KSh 1.1 billion.
The KSh 1.1 billion loss was recorded after the company’s 2023 audit revealed a KSh 1.26 billion loss.
In the 2024 audit, the company reported current liabilities of KES 4.996 billion against current assets of KES 1.959 billion, resulting in a working capital deficit.
Further, the audit report indicated that the Standard Group shareholders’ equity was negative at KSh 2.22 billion.
In recent years, the media company has laid off hundreds of workers after sliding into the red.
For instance, in July 2024, Standard Group undertook a redundancy program, laying off several employees.
According to employees, Standard Group had extended a one-year payment plan for redundancy dues, following the mass employee layoffs.
Redundancy dues were expected between September and November 2024, according to the Standard Group employees.
During an exclusive session with the The Kenya Times, a former employee of the company claimed they had gone unpaid for up to five months, while alleging that some of the promised redundancy dues were not settled.
In June 2024, Standard Group appointed Marion Gathoga Mwangi as Group Chief Executive Officer, succeeding Joe Munene during the financial crisis period.
Joe Mumene had been serving in an acting capacity following the departure of former CEO Orlando Lyomu.
During Marion Gathoga’s tenure, the company pursued restructuring initiatives, cost-containment measures, and strategic reforms to restore financial stability.
However, less than a year later, Gathoga Mwangi announced her exit, citing personal reasons.
“Personal circumstances that I cannot overlook have informed my decision on my future with the company. The transition has begun, and this may be the last newsletter I write to you,” Gathoga stated.
Faith Mwangi is a digital news writer at The Kenya Times with a strong foundation in multimedia journalism. She specializes in current affairs, education, and social justice reporting, with a keen focus on underreported stories affecting communities. Driven by a commitment to authentic storytelling and ethical journalism, she continues to grow in the dynamic digital media landscape. She can be reached at [email protected]
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