Govt Intervenes As Standard Group Begins Paying Journalists Pending Salaries

Co-operative, Small, and Medium Enterprises Development Cabinet Secretary (CS) Simon Chelugui has announced that his Ministry has taken action regarding the financial woes that have been compounding the Standard Group Limited.

Chelugui was responding to a post on X (formerly Twitter) on Friday, November 10 by former KTN journalist Lindah Oguttu who revealed that the employees at the century-old media house had received their pending salaries for October.

Sources who spoke to Viral Tea had confirmed that the employees received their October salaries made by the media house at midnight on Thursday, November 9, though it remains unclear whether the arrears for the rest of the months were cleared.

Oguttu further called upon Standard Group to conclusively address the matter as well as remit employees' savings to the Sacco.

Cooperatives CS, Simon Chelugui during a past media address. /KENYA NEWS AGENCY

"So Standard Group employees have received their October salaries IN FULL...makofiiiii. Now please pay the arrears.

"When done please remit employees savings to the Sacco. The sacco is broke because you deduct but don't remit the savings," she stated.

Chelugui in response stated "The matter is being actioned by my office Linda. Thank you!" to which Oguttu thanked the CS for reaching out and committing to resolve the matter so that the employees can get their savings from the Sacco.

"You cannot be a company like Standard Group and deduct sacco savings from your employees and not remit it to the sacco.Its wrong. People can't get their savings because the sacco is broke. Pesa ya watu mtalipa (You’ll pay employees their salaries)," the communications strategist stated in another X post, urging the Sacco Societies Regulatory Authority (SASRA) to also intervene.

The developments came hours after Standard Group broke its silence amidst a vow by the Kenya Union of Journalists (KUJ) to mobilise media workers to protest outside its offices across the country in response to complaints by its journalists who went six months without being paid.

Standard Group in a statement revealed that despite the harsh operating environment, made worse by the current economic crisis facing the country, the Mombasa Road-based media house stayed focused on its product innovation and diversification agenda aimed at driving revenue generation and ensuring business profitability.

"In all this, our highly professional staff have remained committed despite the challenges, and continue to produce competitive media content to serve our customers.

"A key challenge for the business has been the significant outstanding debts (pending bills) owed to the company and this has, regrettably, affected some of our operational timelines, including the timely payment of staff salaries. This issue remains a top priority for the company and is being addressed accordingly," the century-old media house assured.

The company further noted that it was undertaking various initiatives, including a major cost reduction and efficiency enhancement drive, as well as a restructuring of the business, to conform to current economic realities.

KUJ had threatened to stage protests in 14 days in the event Standard Group, considered the country's second-largest media house, failed to formulate a plan to remit their journalists.