Standard Group has issued its staff with a salary reduction memo citing tough economic times as the country battles the Covid-19 pandemic.
In a notice seen by Kenyans.co.ke, staff earning 100,000 and above have a 25% reduction while those earning 100,000 and below have a 20% reduction in salaries effective April 1, 2020.
The staff will not only have to contend with a reduction in salaries but also some of them go on leave waiting to be recalled when needed.
''In view of the reduced level of operations due to the Covid-19 crisis, it has become necessary to request staff to proceed on leave, other than those who will be actively engaged. All over the world, businesses are either closing or scaling down their operations.''
The memo signed by the group CEO, Orlando Lyomu, also went on to appeal to the workers to liaise with their bank's and Saccos for an agreeable repayment plan.
"We have made a special appeal for a moratorium on loan repayments to all banks and Saccos where our staff have secured or unsecured loans. You may, therefore, liaise with your financial institutions for this consideration.''
The cuts and changes at the group have not only affected staff but also the Standard Group board of directors who have agreed to reduce their allowances and defer all their payments to a time when the situation becomes more favourable.
Standard Group now joins Royal Media Services as the other media house that has reduced employee's salaries. On March 27th Royal Media issued a salary reduction of up to 30% on their salaries.
With the virus spreading rapidly many organisations are forced to reorganise so as to be able to survive. Naivasha flower farms too issued a notice to COTU to have non-essential employees sent on indefinite leave.
Experts have indicated that the pandemic situation may last up to four months and will take economies up to six months to recover.
According to Deloitte, economies are affected by the pandemic in three different ways; by directly affecting production, by creating supply chain and market disruption, and by its financial impact on firms and financial markets. However, they argue that a great deal on the effects depends on the public’s reaction to the disease.
