A prominent Kenyan supermarket chain, Shivling, is facing serious allegations regarding the mistreatment of its employees across various branches in the country.
Kisii County Senator Richard Onyonka has called for an inquiry from the Standing Committee on Labour and Social Welfare to address these labor practices and the overall welfare of Shivling employees.
On October 31, Onyonka highlighted several issues, including the supermarket’s practice of deducting employee salaries for stock discrepancies.
He also raised concerns about employees being required to work extended hours without proper compensation.
In addition to these issues, Shivling’s management is accused of racial discrimination against its Kenyan workers.
There are also claims regarding the non-remittance of statutory deductions to the National Health Insurance Fund (NHIF) and the National Social Security Fund (NSSF) for its employees.
Senator Onyonka is requesting the committee to present the latest audited report on wages and overtime payments for employees of Shivling Supermarkets, both in Kisii County and nationwide.
He seeks detailed information on employment terms, remuneration, and policies that affect the welfare of employees.
Shivling Supermarket has been a fixture in the Kenyan market for over 20 years, with branches in Migori, Homa Bay, Kericho, Kisii, Nyamira, and Kisumu.
This scrutiny follows a recent case in December 2023, where the Competition Authority of Kenya (CAK) fined Carrefour Supermarket sh 1.1 billion for abusing its buyer power over suppliers, including Pwani Oils Limited.
The CAK found that Carrefour unfairly exploited small and medium-sized enterprises.
In response to these accusations, Carrefour denied exerting unfair buyer power but acknowledged issuing standard-term supply contracts with clauses allowing for rebates and deductions.
The CAK’s statement indicated that the retailer, trading in Kenya as Carrefour, was penalized for abusing its superior bargaining position over two suppliers.
The authority also mandated the retailer to refund sh 16.7 million in irregular rebates and remove all clauses from its contracts that facilitated such abuses.
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