Standard Media Group suspends catering services to staff as cash crunch worsens

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The Standard Media Group has asked its employees to seek alternative means to get food after a company that was providing catering services to the Mombasa road-based company suspended its services.

Staff at the company have been eating their meals through a check-off system four times a day from a cafeteria run by NAS Servair. The cost of the meals is then deducted from their salaries at the end of the month and paid to the caterer.

With the Standard currently unable to pay its staff on time, it appears that it has also not been paying the caterer. Yesterday, the media house informed its employees that they would no longer be eating at the cafeteria.

“We wish to inform you that Cafeteria services are temporarily suspended. We are actively working to find a solution to ensure that your meal needs are met,” said Standard Group in a memo to its employees.

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“In the meantime, we recommend that you make alternative arrangements for your meals. Apologies for the inconvenience caused,” said the memo.

A number of journalists have already left the Standard Group which has a presence in broadcast through KTN, KTN News, KTN Burudani, KTN Farmers, Radio Maisha, Spice FM and Vybes Radio.

In print, it owns Standard newspapers and The Nairobian weekly; as well as Standard Digital which runs online versions of the two divisions. It also owns the advertising firm Think Outdoor.

The company is however facing a serious financial crisis that has made it go for months without paying its staff. It is said that those holding the controlling shareholding at the company have refused to pump in more money at the loss-making media house and have asked management to sort out the mess.

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