This archive report was first published on 13 July 2020.
Published on July 13, 2020, reports emerged that MediaMax, a Kenyan media house associated with the Kenyatta family, had filed for insolvency. This move has raised concerns that the company is attempting to avoid paying dues owed to sacked employees.
According to sources, MediaMax has hired the services of Kereto Marima, a corporate insolvency and restructuring practitioner, to execute the insolvency process. Insolvency occurs when a company's debts outweigh its assets or when it is unable to pay its bills on time.
MediaMax's financial struggles have been well-documented, with reports suggesting that the company was broke and unable to pay dues owed to fired employees. Last month, it emerged that the media house had offered sacked employees an outrageous contract termination package, which included lumping together salary arrears for three months and terminal benefits and staggering them over a period of up to three years.
Those who were briefed by MediaMax human resources about the redundancy at Emory Hotel in Kileleshwa, Nairobi, gave varying periods, with newer employees having been given up to 24 months, and up to 40 months (about three years) for long-serving workers.
MediaMax currently runs several media outlets, including the People Daily Newspaper, TV stations (Kameme and K24), and radio stations (Emoo FM, Milele FM, Kameme FM, Msenangu (formerly Pilipili FM), Mayian FM, and Meru FM). The company has gained notoriety as one of the most ruthless employers in Kenya, having fired close to 100 employees at night through text messages after instituting a fifty per cent salary reduction.
