This archive report was first published on 12 November 2019.
Mediamax Networks Ltd's decision to lay off 160 employees on October 30th, 2019, has turned out to be a costly one for the company. The employees, who were promised immediate compensation, are still waiting for their dues, with the company citing cash-flow problems.
According to sources, the employees were told that they would be paid within two days of receiving their redundancy letters, but nearly two weeks later, they are still waiting. The company's failure to pay the employees has left them in a difficult situation, with some even unable to access their Sacco savings.
One of the former employees told Business Today that the Sacco has locked their accounts until the company clears with them. The employees are also facing the pain of empty pockets, with the company owing them millions in accrued leave allowances and a gratuity of 15 days for every year worked.
The company's decision to lay off the employees has also raised questions about its financial preparedness for the retrenchment. Acting CEO Ken Ngaruiya is under pressure to explain the company's cash-flow problems and its failure to pay the employees.
Mediamax has approached its principal shareholders, including President Uhuru Kenyatta and Deputy President William Ruto, for a bailout. The company's failure to pay the employees has also held back plans by some employees to move to court over the lay-off.
