Standard Group which owns KTN, The Standard Newspaper, and a number of radio stations will subject its employees to pay cuts as the economy takes a hit due to the spread of the novel COVID-19.
In a memo signed by the group CEO Orlando Lyomu, the pay cuts will be dependent on the employee’s job group.
For instance, those earning more than Sh100,000 per month will have their salaries slashed by 25% while those making less than the Sh100,000 will suffer a 20% pay cut effective April 1, 2020.
“As a result of the disruption caused so far, we have had many of our customers cutting back on their advertising budgets and in some instances, withdrawing advertising completely,” he said.
“This is the mainstay of our business and so it goes without saying that we are already being impacted heavily. Our priority, therefore, shifts to ensuring the survival of our team and the organisation,” he added.
Non-essential employees have also been asked to proceed on leave and wait to be recalled.
“Due to the 7pm – 5am curfew and additional restrictions on movements outside Nairobi Metropolitan Area, Mombasa, Kilifi and Kwale, and 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 for those who will be actively engaged,” the CEO said.
Company directors will too forego a percentage of their allowances until a time the situation stabilizes.
“The Board of Directors of The Standard Group Plc. have (sic) agreed to not only take a cut on their allowances, but to also defer the payable amount until such a time that things will normalize,” Mr Lyomu said.
The move, he said, will help foster “efforts of management to cut on costs and preserve cash” with the main aim being its employees’ safety and the long-term stability of the company.
Mr Lyomu also appealed to banks and saccos at which their employees might have secured loans to allow an agreeable payment 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.”
Standard Group becomes the fourth media house to slash its employee salaries. Royal Media Services and Radio Africa announced 20 to 30 percent pay cuts while Nation Media Group sent majority of its staff on leave.
Companies have scaled down operations in the wake of COVID-19.
Experts say the situation could take up to six months to stabilize as some 1.3 million people across the globe continue to fight the deadly virus.
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