NMG Slashes Employee Salaries

  • The Nation Centre building in Nairobi's Kimathi Street where the Nation Media Group offices are located. Monday, October 21, 2019
    The Nation Centre building in Nairobi's Kimathi Street where the Nation Media Group offices are located.
    Simon Kiragu
  • Nation Media Group (NMG) has moved to slash employee salaries owing to the economic recess brought about by the Covid-19 pandemic.

    In a statement released on Wednesday, April 29, signed by Group Executive Director Stephen Gitagama, NMG stated that the pandemic had resulted in global uncertainty, negatively impacting business.

    "Management has so far undertaken several cost-saving interventions to keep the business running and continue to deliver services to our customers. As part of these measures, the Board of Directors have taken a reduction on their Director's fee," the statement reads in part.

    Nation Media Group CEO Stephen Gitagama.
    Nation Media Group CEO Stephen Gitagama.
    Daily Nation

    "However, in order to ensure the sustenance of livelihoods of staff and their dependents during this challenging period, we have to do more, collectively.

    "Consequently we have taken a painful but necessary decision to temporarily reduce the gross pay for all staff earning a gross monthly pay of Ksh50,000 and over, effective from May 1, 2020," the statement adds.

    The media house stated that the salary cuts would range from 5 to 35% all dependant on gross earnings, further informing that the Human Resource Department and line managers would get in contact with individuals to establish individual changes.

    All other terms of employee contracts, NMG informed would remain intact.

    "This is an extremely tough decision, and we understand the impact this will have on you and your family. However, please be assured that we have considered several other alternatives, and the decision taken is the most sustainable option in the current circumstances.

    "This unavoidable action is temporary and will be reviewed every three months depending on the company's performance and as the Covid-19 situation evolves," the statement further reads.

    NMG stated that it would undertake a restructuring of the company and Nation Sacco loans so as to cushion employees from the economic adversities. 

    "Where required, we shall provide you with your financial services providers for extension of any special incentives and moratoriums that you may be eligible for as a result of this temporary salary reduction," the statement reads in part.

    "We appreciate your hard work and commitment to the company and count on your support to ensure that we pull through this together," it concludes.

    Following the outbreak of Covid-19 in the country, many businesses have been forced to close, others forced to cut back on labour, while others have undertaken to retain employees, but at slashed salaries.

    The national government has since moved to put in place measures to cushion members of the public and companies from the economic effects of the pandemic. Most notably, income tax relief.

    Media houses in the country have been backed to salary cuts, with some opting to lay off staff during this period. 

    This has been attributed to the negative toll on businesses that have since been a source of revenue to the media through advertising.

    Standard Group and Mediamax are among the media companies in the country that have publicly announced salary cuts for their employees during this period.

    Journalists docked at a media center while covering an event.
    Journalists docked at a media centre while covering an event.