Laico Regency Employees In Turmoil

SUMMARY

• The workers say that the hotel has for over a year deducted them money for staff pension, savings and loan repayment in Regency Savings and Credit Cooperative Society and tax payment but failed to pass it to the respective institutions.
• They did not specify the total amount that has not been remitted but put the figure owed to the Regency Savings Society at Sh37.77 million as at mid-December.
• The workers now want the deductions to be submitted in the next seven days to allow them to access loans for survival and also get tax clearance certificates from the Kenya Revenue Authority.

Laico Regency workers are protesting over nine-month unpaid leave and accrued money that the employer deducted from previous salaries and failed to remit to their savings society.

The workers say that the hotel has for over a year deducted them money for staff pension, savings and loan repayment in Regency Savings and Credit Cooperative Society and tax payment but failed to pass it to the respective institutions.

They did not specify the total amount that has not been remitted but put the figure owed to the Regency Savings Society at Sh37.77 million as at mid-December.

The workers now want the deductions to be submitted in the next seven days to allow them to access loans for survival and also get tax clearance certificates from the Kenya Revenue Authority.

“You are under legal obligation to remit to our client, without fail and within statutory timeframes, all deductions made on emoluments of our clients’ membership,”reads a letter from the workers’ lawyers to the management of the hotel.

Regency Savings and Credit Cooperative Society vice chairman Joseph Kibagendi has also written to the acting commissioner for cooperative development Geoffrey Nja’ngombe for intervention.

Workers say that the unremitted money has seen their savings society refuse to refund them their contributions or give them loans that would have helped them navigate through the unpaid leave.

The hotel staff were in March sent on unpaid leave after the onset of Covid-19 pandemic in Kenya saw the State order a dusk-to-dawn curfew and banned public gatherings including the closure of bars and hotel.

The Covid-19 disruption has seen hotels such as Radisson Blu halt operations and send home workers.

Fairmont Hotels and Resorts in late May also closed Fairmont The Norfolk and Fairmont Mara Safari Cub due to low business and laid off all employees.

Laico Regency, formerly Grand Regency Hotel, was owned by businessman Kamlesh Pattin. However, it was repossessed by the government to recover proceeds of corruption and then sold to the Libyan government in 2008.