MediaMax Insolvency: Emerging reports say that MediaMax has is attempting to avoid carrying the burden of settling dues owed to sacked employees. This is after the media house reportedly filed for insolvency.
Reports say that “Mediamax has hired the services of Kereto Marima, a corporate insolvency and restructuring practitioner to execute the move.” Bizna Kenya, had however, not received confirmation of this filing at the time of press. Insolvency is when when a company’s debts outweigh assets or if the company cannot pay its bills when due.
Last month, it emerged that the media house which is associated with the Kenyatta family was broke and unable to pay dues owed to the fired employees. According to one report, fired employees who were summoned at the Emory Hotel in Kileleshwa, Nairobi by the media house’s human resource managers were offered what was being considered an outrageous contract termination package.
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“The employees who were called for a meeting with the management were told that their salary arrears for three months and terminal benefits would be lumped together and staggered over a period of up to three years,” said a report that appeared in a local media news online journal. “Those who were briefed by Mediamax human resources about the redundancy at Emory Hotel 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.”
The latest reports on the troubled media company with insolvency, all fired employees will lose their dues unless the firm’s assets are disposed off. MediaMax currently runs the People Daily Newspaper, Tv stations (Kameme and K24) Radio stations ( Emoo FM, Milele FM, Kameme FM, Msenangu (formerly Pilipili FM), Mayian FM and Meru FM.
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MediaMax has gained notoriety as one of the most ruthless employers in Kenya. The company fired close to 100 employees at night through text messages. This was after instituting a fifty per cent salary reduction.