Employees of the Standard Group have announced a shutdown of operations, citing unresolved issues that have led to growing frustration among staff.
Standard Group employees are grappling with unpaid dues, unremitted contributions, and prolonged financial hardships.
Speaking exclusively to The Kenya Times, a source revealed that some employees have gone unpaid for up to five months.
Additionally, the source disclosed that workers declared redundant were allegedly misled about the settlement of their arrears, further fueling discontent within the workforce.
“Some are owed as much as 5 months. Those who were declared redundant were lied to about settling the arrears,” the source said.
Employees Complain of Unpaid Dues and Unremitted Contributions
In July 2024, Standard Group PLC declared redundancies, leading to a wave of layoffs.
The company promised former employees a one-year redundancy payment plan, with installments due in September, October, and November 2024.
However, former employees in an earlier statement stated that as of November, neither the first nor the second installments have been paid, leaving the former staff in financial distress.
Also Read: Former Standard Group Employee Dies Months After Being Declared Redundant
“Some former staff have faced evictions due to rent arrears, while others cannot afford to pay school fees arrears to get clearance for children in private schools to join public schools,” read the statement in part.
“Many are struggling to put food on the table while those with underlying conditions cannot afford essential drugs and diet. Some have resorted to construction jobs and other casual work to buy food for their children.
Salary Arrears at Standard Group
In addition, the Letter stated that SG was yet to pay outstanding salary arrears owed to current and former employees, covering eight months: June, July, and August 2023, as well as March, April, May, June, and July 2024.
It added that employees were sent home with only one month’s salary and a promise that their dues would be paid overtime, but this has not materialized.
Furthermore, it is alleged that the company failed to remit essential deductions from employee paychecks, including individual income tax (PAYE) to the Kenya Revenue Authority (KRA).
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Also not remitted are contributions to the National Social Security Fund (NSSF), National Hospital Insurance Fund (NHIF), private pension schemes, and Sacco savings, according to the former employees.
“Former staff cannot get tax clearance from KRA, locking them out of crucial job applications,” the letter read further.
“These withheld funds deny former employees access to essential benefits, including healthcare, social security, and retirement savings, which is not only a violation of Kenyan labour laws but also a breach of basic human rights.”
Also Read: Standard Group Records Ksh200M Loss Amid Mass Firings
Former Employees Issue Demands
The employees demanded for immediate remittance of all withheld deductions to NSSF, NHIF, private pension schemes, and Sacco savings, to enable former employees and Sacco members to access the services and benefits they are entitled to under the law
They also demanded full and prompt payment of all salary arrears owed to current and former Standard Group PLC employees for June, July, August 2023, and March through July 2024.
Another demand issued was the adherence to the redundancy payment plan as promised to laid-off employees, with the immediate settlement of overdue installments for September, October, and November 2024.
Furthermore, the employees demanded the 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.
SG which owns The Standard Newspaper, KTN Home, Spice FM Radio Maisha and The Nairobian among other brands reported a Ksh1.26 billion loss in the year 2023.
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