Anxiety rocks Standard Group staff amid alleged bankruptcy facing Network Sacco

Anxiety is brewing among staff at the Standard Media Group as word spreads that Network Sacco, which directly deducts monthly contributions from their salary, is facing severe financial difficulties.

The Sacco membership, which is drawn from the editorial, management and other departments, has experienced salary delays attributed to cash flow issues occasioned by a reduction in revenues and ballooning debts affecting the company.

The aggrieved employees who have gone six months without pay are demanding to know the truth about their hard-earned savings amid rumours that the Sacco is on the verge of collapsing.

“People cannot be saving their hard-earned money in Saccos only for the money to disappear. Colleagues at the Standard Group are going through hell because of Network Sacco,” Lindah Oguttu, a former KTN TV anchor at the company, tweeted.

A staff member working at the company confirmed that indeed, there are issues with staff claiming that about Ksh200 million in deductions have not been remitted.

“No money has been stolen; the truth is that the company is ailing and has consequently defaulted on all the statutory payments of staff salaries for the past six months, which has as a result affected the remittance of the monthly deductions to the SACCO,” the employee said.

Sacco Review has also learned that there are staff members who deposited up to Ksh4 million in savings but are now unable to get a refund or access a loan against their savings.

At the same time, salaried staff who have resigned and want clearance from the company are finding it hard to access their savings.

The Standard Group publishes the Standard Newspaper, Standard Digital, runs KTN Home and KTN News, and has several radio stations.

This happens as the Kenya Union of Journalists (KUJ) issues a 14-day ultimatum to the company to provide a clear payment plan to settle arrears; otherwise, it will mobilize media workers in a solidarity strike to picket at the company’s offices countrywide.

By Amos Kerich

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