Frustrated workers contracted by Mafuko Industries Limited, a manufacturing and industrial company based in Meru, Kenya, have come forward to air their concerns following the implementation of a refundable security deposit deduction policy for its petroleum sector employees. Lalji Ramji Filling Station Limited, a subsidiary of Mafuko Industries, introduces a refundable security deposit deduction policy.
The policy, introduced through a memo issued via WhatsApp groups, has raised questions regarding the lack of proper engagement with staff prior to its implementation.
According to the internal memorandum shared with staff members, beginning in April 2025, all employees at Lalji Ramji Filling Station Limited, a subsidiary of Mafuko Industries, are to contribute a refundable security deposit of Ksh 50,000.
The amount will be deducted in monthly installments of Ksh 5,000 over a period of 10 months.
The letter further explains that the deducted amounts will be held by the company as a refundable security deposit. Workers contracted by Mafuko Industries raise alarm over new refundable security deposit deduction policy, citing lack of transparency and financial burden.
It is stipulated that the full amount will be returned to the employees once they complete their tenure with the company and after meeting all necessary conditions, although these conditions are not explicitly outlined in the memo.
The memo, which was issued through WhatsApp groups and directed at employees within Mafuko Industries' petroleum division, has caused widespread unease among workers.
Many have expressed frustration at the lack of direct communication or engagement regarding this new policy. The company's management, as per the memo, has not held any consultations or discussions with workers before rolling out the deduction.
“There has been no consultation or meeting with workers. The company simply announced this deduction without any dialogue. This is highly concerning, especially as there was no room for any questions or feedback from us,” one source, who requested to remain anonymous, voiced strong concerns about the decision.
The announcement has raised several questions among the workers, especially regarding the lack of clarity on the terms of the refund.
While the memo mentions that the security deposit will be refunded after employees meet certain conditions, the specific criteria for a full refund have not been explained.
Employees are left wondering about the nature of the conditions they must fulfil to ensure they receive their full deposit back.
Furthermore, the fact that the deduction will be made over a 10-month period places a financial burden on workers, particularly those with limited disposable income.
Many employees are now grappling with how the policy will affect their monthly income and whether the promised refund will be processed fairly once they leave the company.
The memo was signed by the Administration Manager, Neer's Ramji, and the Director, Sailen L. Ramji.
The introduction of this policy without prior consultations or clear communication from the company administration raises broader concerns about the level of engagement with employees at Mafuko Industries.
This practice is seen as an example of top-down decision-making, where management imposes policies without taking into account the impact on staff or seeking their input.
In response to this new policy, workers have voiced their concerns and are now calling for intervention from relevant bodies that oversee workers' rights and ensure fair treatment within the workplace.
Key agencies such as COTU (Central Organization of Trade Unions), the Ministry of Labour and Social Protection, and Labour Unions like the Kenya Union of Commercial, Food and Allied Workers (KUCFAW) are being urged to step in and address the workers' grievances.
As a platform dedicated to holding companies accountable and amplifying the voices of workers, we will continue to monitor the situation closely.
Our commitment to transparent and fair reporting means that we will follow up on any responses from Mafuko Industries or relevant authorities and keep the public informed of any new developments.