Statutory Demand Stands: High Court Clears Way for Insolvency Action Against Standard GroupStatutory Demand Stands: High Court Clears Way for Insolvency Action Against Standard Group

The ruling matters because it lands as the media house loses its chief executive and tries to steady its finances. In a decision dated 9 October, Justice Freda Mugambi of the High Court dismissed the company's application with costs, discharged the interim orders that had held the claim back and left the statutory demand in force.

What the court decided

The claim was brought by Moses Onyango Ochola, a former employee, for salary arrears, gratuity and other terminal benefits. He issued a statutory demand on 23 March 2026, which is the formal notice that can open the way to winding-up proceedings if a debt is not paid.

The judge found that Standard Group had itself calculated and approved the sum of KSh 7.54M in July and August 2025. The chief talent officer, the payroll supervisor and the finance controller approved the computation in July 2025, and the chief executive approved it on 14 August 2025. The figure was emailed to Mr Ochola on 18 August 2025.

The company argued that the claim was still subject to reconciliation, including contract terms and statutory deductions, and that employment disputes belong in the Employment and Labour Relations Court. It also said the demand could harm its reputation and operations.

Why the argument failed

Justice Mugambi said the company had not pointed to any specific part of the computation that was disputed, and had offered no alternative figure. In her words, the company's position was "not a dispute but a reason for not paying."

She also held that a former employee does not necessarily need a court judgment or award before issuing a statutory demand, provided the debt is due and not genuinely disputed. The court cautioned against using insolvency proceedings to pressure companies over claims that are truly contested, but found no evidence that Mr Ochola had abused the process. It added that the harm the company feared could be avoided by paying the acknowledged debt.

A company in transition

The ruling follows the resignation of chief executive Chaacha Mwita, which takes effect on 1 November 2026. As Mwenendo earlier reported, Standard Group's chief executive resigns after seven months, with no successor named.

Three independent non-executive directors joined the board on 15 October: Anthony Ambaka Kegode, Tom Odongo and Elishah Njeru. Two non-executive directors, Edward Mwasi and James McFie, left on 31 August.

No public statement from Standard Group on the ruling had been reported at the time of writing. If the company does not settle the demand or meet the applicable legal requirements, further insolvency proceedings remain possible.