Ruto Questions Standard Group Owner Over Unpaid Employees Salaries

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 billionare 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.

“Gmoi, your Standard media’s 5 days a week extortionist propaganda headlines on me & my administration’s transformative track record will get you nothing & nowhere. blackmail to yield to your greed? Never. Kenya belongs to all Kenyans, not you alone. Jaribu 8 days a week. ” Do your worst,” Ruto wrote.

Ruto Links Standard Group Criticism to Gideon Moi

President William Ruto’s fresh attack on KANU Chairman Gideon Moi and the Standard Group, accusing the media house of running a sustained campaign, follows discrediting reports on his administration.

Directly addressing Gideon Moi, whose family is associated with the ownership and control of Standard Group PLC, Ruto argues that the media house has been painting a negative image of his governance.

According to Ruto, the Standard Group has, over the years, been scrutinizing the Kenya Kwanza administration, including its governance, taxation, public spending, and unfulfilled campaign promises.

Standard Group Response to Ruto

In response to the president’s allegation of inappropriate reporting, the Standard Group defended its editorial independence.

The media house further affirmed that it would continue reporting on matters of public interest, including governance and leadership issues. It emphasized that it does not take instructions from any individual or office.

Further, the company raised concerns about the unpaid government debt, citing that the State owes the company KSh1.2 billion, which has led to operational lag.

In addition, Standard Group clarified that following the criticism from the president and unmet financial demand, the company would hold the government responsible for any damages and harm to the company and its staff.

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.

Also Read: Revealed: The Ksh1.2 Billion Cake Causing Tensions Between President Ruto And Gideon Moi

Standard Group Employee Layoffs

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.

Also Read: President Ruto Says He Is Being Blackmailed By Gideon Moi

Standard Group Leadership Changes

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.

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