Cash Strapped Standard Group Asks Employees to Take Early Retirement

A photo of the entrance of Standard Group PLC, located along Mombasa road, Nairobi.
A photo of the entrance of Standard Group PLC, located along Mombasa road, Nairobi.
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Kenyans.co.ke

Cash-strapped Standard Group has now asked employees to take early retirement as the Moi-owned media house restructures amid revenue haemorrhage as advertising revenues shrink.

In an internal memo leaked by a staff to Kenyans.co.ke, the Acting CEO Joe Munene has assured staff that those who will take the offer will not go empty-handed, a move expected to help the company slash its payroll further amid complaints by the editorial teams of thinning talent pool.

The request comes months after the company sent home staff to cut costs amid struggles to pay salaries and other expenses.

The company has been paying staff in installments, an indication that the media house which owns the Standard newspaper and KTN among other brands is struggling financially.

Standard Media Group Broadcast Managing Director Joe Munene.
Standard Media Group Acting Chief Executive Officer and Broadcast Managing Director Joe Munene.
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The Standard

"After careful consideration and in our ongoing efforts to adapt to changing business needs, we are pleased to announce the availability of a Voluntary Early Retirement (VER) Package," read part of the statement.

"The VER program offers all our employees voluntary opportunity for employment separation with an attractive benefits package."

Some of the benefits include payment for days worked until the date of exit,  severance pay of 15 days for every completed year of service, and payment for leave days accrued and not taken at the time of exit.

Others include a notice pay as per contract of employment, pension dues in accordance with the Scheme Rules of Contract of Employment respectively as well as a payment of goodwill for every completed year of service.

The employees who take up the offer will also be entitled to medical, and group life insurance up to the end of the year.

The offer will run from Friday, October 6, to the close of business on Wednesday, October 11.

Nonetheless, the management indicated that it reserved the right to accept or decline a request for the package.

The VER process will, however, not interrupt the ongoing redundancy process which will be conducted concurrently.  

Inside the studios at the Standard Media Group during the 2022 General Election
Inside the studios at the Standard Media Group during the 2022 General Election.
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KTN News