The Standard Media Group is set to send 170 employees home. According to an internal memo dated March 18 that was addressed to all employees of the Standard Media Group by the group chief executive officer, Orlando Lyomu, the sacking will affect all department of the company.
The memo further says that all employees who will be declared redundant will be paid as follows:
a). Payment for days worked until the exit date.
b). Severance pay for fifteen days or days indicated in CBA for union workers, for completed year of service.
c). Notice pay as per contract of employment
d). Payment of leave days accrued and not taken at the time of exit.
e). Pension dues in line with the Scheme rules.
Media houses in Kenya have been sailing in troubled waters due to reduced advertising, delayed payments by the government’s advertising agency, and the advent of digital news coverage and citizen journalism via social media.
In December last year, the Standard Media Group issued a profit warning saying that profits would dip by at least 25 per cent for the year ended 31 December 2019. This dip in profit was attributed to increased newsprint costs and decreased spending power among key existing clients. The media industry, though, is one among multiple industries across Kenya’s economy that are on the verge of collapse due to a badly injured economy.