NAIROBI, Kenya – The Senate Committee on Labour and Social Welfare has vowed to secure justice for the former employees of the Kenya Cooperative Creameries (KCC).
These workers have been embroiled in a legal and financial struggle for over 26 years, stemming from the government’s failure to settle payments during the School Milk Programme in the late 1990s.
Raphael Nambisia, a representative of the petitioners and a former KCC employee, recounted their ordeal before the committee.
“The School Milk Programme, popularly known as Maziwa Ya Nyayo, was the root of the problem,” Nambisia explained.
KCC’s financial woes began when the government defaulted on payments, leading to massive debts.
These debts forced KCC to divert funds intended for workers’ SACCO contributions to sustain the milk programme.
In 1997, KCC employees sought explanations for the non-remittance of their SACCO contributions but were unjustly barred from their workplaces, igniting a prolonged legal battle from the Industrial Court to the Court of Appeal.
The Senate meeting, chaired by Senator George Mbugua, highlighted the adverse impact of this protracted battle on the workers.
An Industrial Court ruling eventually ordered either the reinstatement of the workers or the payment of their terminal dues.
KCC prepared a compensation schedule, which included terminal benefits amounting to Sh109,640,482 and outstanding SACCO dues of Sh92,803,457.
However, in July 2020, the Court of Appeal overturned a High Court ruling that had held New KCC liable for the terminal dues of the aggrieved workers.
The three-judge bench ruled that New KCC, incorporated in 2004, could not inherit the liabilities of its predecessor, despite acquiring its assets.
Despite this setback, the judges expressed hope that the Attorney-General would advise the government to honor its commitments to the former employees.
“Legalities aside, we hold onto the hope that the Attorney-General will find it in him to advise the government to honor its word and pay the respondents who have suffered long,” the judges stated.
Namada Simoni, the lawyer representing the ex-employees, clarified to Senators Gloria Orwoba and Mohamed Faki that while New KCC acquired most of the old KCC’s assets and liabilities, the dues owed to the former employees were excluded.
“All other liabilities, including those owed to farmers and Kenya Commercial Bank, were settled,” Simoni stated.
The Senate Committee has resolved to hold meetings with the Office of the Attorney-General, the National Treasury, New KCC, and the Ministry of Cooperatives and MSME Development.
