This archive report was first published on 22 June 2020.
Published on June 22, 2020, Mediamax Networks Ltd, the parent company of K24 and People Daily, has been embroiled in a controversy surrounding the redundancy of its employees.
According to sources, the company's financial difficulties have led to a proposal to lump together the salary arrears of the sacked employees for three months and their terminal benefits, to be paid over a period of up to three years.
The proposal has caused a stalemate between management and the over 100 retrenched staff, with some employees declining to sign the redundancy letters, demanding their dues to be cleared in the shortest time possible.
“Some have signed while others have declined,” one of the retrenched journalists told Business Today on phone. “It’s funny how the company is playing with us.”
The proposal to stagger payments is a clear indication that Mediamax Networks Ltd is facing financial difficulties, with the company's investors, including Mt Kenya billionaires and Deputy President William Ruto, having been bought out by the main shareholders.
President Uhuru Kenyatta, who has been at the forefront of pushing for employment creation and protection of jobs during the Covid-19 pandemic slowdown, has been left embarrassed by the company's actions.
Mediamax's financial woes are attributed to a huge payroll and inefficient systems, with the withdrawal of main betting companies from the market and advertising hitting its revenues, especially for the free People Daily, which relied heavily on betting operators for revenue.
The Kenya Revenue Authority is also investigating the company for possible tax evasion with regard to Pay As You Earn (PAYE) filings.
