Court Slaps Standard Group with Ksh34 Million Payout Order to Former CEO Orlando Lyomu

In a major setback for Standard Group, the Employment and Labour Court has directed the media house to pay its former Chief Executive Officer (CEO), Orlando Lyomu, over Ksh34 million.

The ruling, issued on April 9 by Justice Stella Rutto, comes after the company failed to honour a previous court order issued in October 2024.

The hefty sum includes unpaid salaries, leave days, and bonuses that had been pending for nearly a year. The payment is to be made in 12 monthly installments, beginning May 5, 2025.

Court Orders Standard Group to Pay Millions to Orlando Lyomu

Justice Stella Rutto’s judgment came after Standard Group failed to honour a previous court agreement that required them to pay Lyomu Ksh38 million. That amount included salary arrears, six months’ salary in lieu of notice, unpaid leave, and a March 2023 bonus.

Initially, the court had ordered Standard Group to pay Lyomu in monthly installments of Ksh750,000 beginning October 2024. It also included legal fees amounting to Ksh1,021,140.

The media house was expected to complete this payment within three months. However, things did not go as planned. By December 2024, the former CEO reported that Standard Group had defaulted on the agreement.

By March 2025, he had only received Ksh4.5 million of the expected Ksh5.25 million, prompting him to return to court for enforcement orders.

In her latest ruling, Judge Rutto ordered that the remaining Ksh33 million be paid in 12 equal installments.

This means the company will now pay Lyomu over Ksh2.75 million every month until the full amount is cleared.

Also, the court directed Standard Group to pay the legal costs in two installments of over Ksh500,000 each through the law firm of Nyachae & Ashitiva Advocates.

This fresh ruling shows how seriously the court views employer-employee obligations, particularly for top-level executives who often leave office amid financial disagreements.

Financial Woes Continue to Haunt Standard Group

Orlando Lyomu’s departure in June 2023 came as Standard Group struggled with long-standing financial challenges.

He had taken over the CEO role in May 2018 after the exit of Sam Shollei and had previously served as the Group’s Finance Director and Chief Operating Officer.

Despite being one of Kenya’s oldest and most respected media houses, Standard Group has faced cash flow problems for years.

These issues have led to delayed salaries, staff retrenchments, and downsizing of operations. The ongoing court battles with Lyomu only further highlight the depth of the financial crisis.

The ruling could not have come at a worse time for the media house. Paying over Ksh2.75 million monthly to a former CEO, plus an additional Ksh500,000 for legal fees over two months, will likely strain its already tight budget.

Moreover, failing to honour the court’s initial agreement paints the company in a negative light, both in legal circles and in the eyes of the public.

Observers say this could also discourage potential investors or partners who see the company as unable to meet its contractual and legal obligations.

This case sets a strong example of how courts are stepping up to protect workers’ rights, even in top management positions.

It also sends a warning to employers about the consequences of defaulting on court settlements. With the court now closely monitoring the installments, the Standard Group will have little room for error.

The first payment deadline of May 5, 2025, is fast approaching, and any further delays could lead to even stricter legal action. For Lyomu, this ruling is a step closer to justice and compensation after years of service to the media giant.