Victory Farms Ltd, a social venture located near Lake Victoria in Kenya, faces serious allegations of employee mistreatment. As a sustainable aquaculture business specializing in tilapia, primarily serving low-income neighbourhoods, the company is now accused of exploiting its workforce.
Reports indicate that employees endure gruelling shifts exceeding ten hours daily with minimal compensation. Workers receive meagre pay, reportedly as low as Ksh 7,000 per month, with no overtime benefits, despite generating significant revenue for the company—processing about 50 metric tons of fish daily, equivalent to Ksh 18 million.
The sales team also faces similar challenges, with long working hours exceeding ten hours a day, seven days a week, without rest or overtime pay. Although they contribute millions in revenue, their monthly compensation often falls below Ksh 10,000. Promised commissions frequently undergo unreasonable deductions, leaving staff struggling to meet their daily needs. Many are on annual contracts, subject to renewal at the discretion of the Nigerian CEO. In contrast, top international staff, who contribute little to the operations, receive compensation in the hundreds of dollars.
Dark Side of Sustainable Aquaculture: Underpaid Staff at Victory Farms Ltd Endure Grueling Hours in Harsh Conditions for Pennies While Foreign While Foreign Executives Pocket Millions
Victory Farms Ltd, a social venture based near Kenya’s Lake Victoria, has been hit by serious… pic.twitter.com/rA5gRpC38X
— Cyprian, Is Nyakundi (@C_NyaKundiH) September 21, 2024
The senior management team, predominantly foreign (mainly West African), is accused of engaging in unethical business practices that undermine local market dynamics. They act as suppliers, distributors, and retailers within the same market, denying local market vendors opportunities and driving many out of business. Employees report a hostile work environment, where dissent is met with threats of job loss, creating a culture of fear.
Claims of unfair pricing also emerge, as the company promotes an image of affordability while continually hiking prices, adversely affecting local vendors who rely on fish sales for their livelihoods.
Furthermore, the company reportedly favors imported labor over qualified Kenyans for key positions, despite the existence of capable local candidates. Roles such as head of security, head of projects, and head of IT are filled by individuals with little understanding of the local context, disregarding Kenyan labor laws. This practice allows West African personnel to dominate decision-making, often treating local staff poorly and dismissing those perceived as threats to their authority.
The high turnover rate reflects a lack of job security, particularly for many desperate widows working at the farm. Recently, 20 employees were unjustly dismissed over a minor uniform dispute, which could have been resolved amicably.
Disciplinary actions are often handled by the CEO, HR manager, and head of security, who are husband and wife, leading to potential biases in case hearings. Additionally, the resignation of the HR director has raised concerns about the CEO’s poor policies and their impact on employee welfare.
There are reports of impending dismissals aimed at clearing positions for expatriates considered loyal to the CEO, further complicating the already tense work environment.
