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Java Slashes Employee Salaries by 40 Percent, Refuses to Suspend Java Sacco Loans


Java House has slashed employees’ April salaries by up to 40 percent amid coronavirus pandemic.

In a letter addressed to the employees, the company cited the effects of  COVID-19 affecting businesses thus terming them unfavorable.

According to reports reaching Kahawa Tungu, several employees had taken loans before the COVID-19 menace through the Company’s controlled Java Sacco where deductions are made monthly.

Read: Java Waiters Formulate Way Of Stealing From Unsuspecting Customers

The employees are calling upon the management to suspend the payment of loans as the new salary reductions have left them with barely anything to survive on.

For instance, one who sought anonymity stated that the 40 percent reduction plus the Sh5,000 loan reductions will leave her unable to cater for her daily needs.

“A good percentage of the staff had taken loans with the company controlled Sacco (Java Sacco) and we had pleaded with the management to suspend our payment of loans but we are still going to be deducted 40% of the loans despite the salary cut,” she said.

Read Also: Man Arrested At Java House For Trying To Defile Six-year-Old Girl

Further, she said, “A good number of us are at home, bills are still being paid. Kids away from school, rent, electric bills, water bills. Personally I am being deducted 22,000ksh(40%) and the loan will deduct 5,000. From my salary, I’ll remain with Sh8,540.  If the company can postpone the loan deduction we can’t survive.”

In the wake of COVID-19 menace in the country, businesses have closed down while others have slashed their employees’ salaries citing a tough economic environment.

Media houses for instance have announced salary cuts ranging from 20% to 50%.

Last week, Mediamax, the home of K24 TV, People Daily and Milele FM announced plans to slash employee salaries by between 20-50 percent.

Read Also: Mediamax to Reduce Employees’ Salaries By Up To 50 Percent Over Covid-19 Effects

In a statement to its staffers, Mediamax said that the effects of COVID-19 pandemic had eaten into the company’s profits, which relies heavily on advertising.

“We have consulted extensively and held several meetings with the leadership team and the board of directors to find ways and methods to sustain and keep the Company afloat during this pandemic. We have come up with several measures to ensure that we try to sustain and ensure that the business at this stage survives and sustains itself. Amongst the proposed measures that will directly apply to employees will be a reduction of between 20% and 50% on Gross Monthly Pay based on job levels effective April 2020,” read the statement in part.

Read Also: Standard Group Announces Upto 30 Percent Salary Cuts As Country Grapples With COVID-19

Yesterday, Mediamax employees received consent letters days after the company declared intention to slash salaries starting this month.

Nation Media Group also slashed the salaries of its columnists and contributors by up to 40 percent.

Standard Media Group had at the beginning of the month announced pay cuts with those earning more than Sh100,000 per month having their salaries slashed by 25% while those making less than the Sh100,000 to suffer 20% pay cut effective April 1, 2020.

Currently, the total COVID-19 cases confirmed in the country stands at 296, with 14 fatalities and 74 recoveries.

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Written by Mercy Auma

Passionate about human interest stories and politics. Email

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