As the corona pandemic continues to ravage, Royal Media Services, the parent company of Citizen Tv and Radio, has disclosed a general salary reduction for all its staff, as the negative effects of Coronavirus outbreak in Kenya begin to sink in.
Last two weeks the Standard media group announced its plans to lay off over 170 workers across the country sending more chills in a Mainstream media industry already feeling the heat from reduced advertising. the COUNTY DIARY has learnt.
In an internal memo released by management on Friday, RMS says its workers will be subjected to a compulsory pay cut of between 20% and 30% without an option.
The Covid-19 catastrophe, though, appears to have given RMS a perfect opportunity to implement cost-cutting options it has been toying with over the past few months.
According to the grapevine, There has been talk of the company seeking to cut its costs after cleaning its payroll of ghost workers last year. Fluctuation in the working system.
The phenomenal outbreak of the coronavirus in the world and Kenya, in particular, has had serious repercussions on businesses, including ours,” Royal Media Services MD Wachira Waruru says in the Memo, dated 27th March.
“This reality necessitates that we take difficult but necessary measures to see us through this period, one of which is to scale down our operations until the situation normalizes.”
The move is expected to hit hard its celebrity presenters with seven-figure salaries including JKL show host Jeff Koinange, Strategy Director Linus Kaikai, and Editorial Director Joe Ageyo among others.
A 30% shave from a salary of Ksh1 million, for instance, amounts to Ksh300,000, which cannot be neutralized by the government income tax relief of 5 percentage points from 30% to 25%.