OK Zimbabwe suspends workers’ salaries as corporate rescue deepens crisis

Embattled Zimbabwe Stock Exchange listed retail giant OK Zimbabwe Limited has suspended salaries and wages for its employees with immediate effect as the company intensifies efforts to stabilise operations under corporate rescue proceedings.

In a resolution dated 22 May 2026, the company’s Joint Works Council said the decision was taken as part of measures aimed at turning around the struggling business and restoring profitability.

The resolution states that OK Zimbabwe’s Board of Directors held an urgent meeting on 23 February 2026 to address the company’s financial difficulties and determine an appropriate course of action.

Following deliberations, the board resolved to voluntarily commence corporate rescue proceedings in terms of Section 122 of Zimbabwe’s Insolvency Act. The company was subsequently placed under corporate rescue on 24 February 2026.

The resolution further confirms that Bulisa Mbano of Grant Thornton Zimbabwe was appointed as the corporate rescue practitioner overseeing the process.

According to the document, the Joint Works Council resolved to suspend the company’s payroll and compensation structure as part of efforts to stabilise the business amid weakening performance and declining revenues.

“The Company has agreed with its staff to suspend all salaries and wages with immediate effect and will, therefore, not be running any payroll beginning the month of May 2026 until further notice,” the resolution reads.

The council described the measure as “difficult and uncomfortable” but necessary to support efforts to return the company to profitability.

The suspension of salaries is expected to affect workers across the retailer’s operations, although the resolution states that the Joint Works Council will ensure compliance with relevant labour laws governing such adjustments.

OK Zimbabwe, one of the country’s largest supermarket chains, has in recent years faced mounting operational and financial pressures amid a challenging economic environment.