In a move aimed at addressing a long-standing grievance, the Senate Committee on Labour and Social Welfare has vowed to secure justice for ex-employees of the former Kenya Cooperative Creameries (KCC), a resolution that has eluded them for over 26 years.
Speaking before the committee, Raphael Nambisia, a representative of the petitioners and former employee of KCC, recounted the origins of their plight, tracing it back to the late 1990s.
“The School Milk Programme (popularly known as Maziwa Ya Nyayo) was the root of the problem”, Nambisia lamented.
“KCC was responsible for supplying milk to all the primary schools across the country, but the government failed to settle its payments with the creamery.”
The financial challenges led KCC to incur heavy debt and subsequently redirected funds meant for workers’ SACCO contributions and other payments to the milk programme.
In the meeting chaired by Senator George Mbugua, it was revealed that in 1997, when KCC employees sought explanations for the non-remittance of their SACCO contributions, they were unjustly barred from their workplaces.
This marked the beginning of a protracted legal battle, spanning from the Industrial Court to the Court of Appeal.
The milk scheme provided free milk to all primary schools. The demand for milk also saw farmers being encouraged to increase their milk production to meet the increased demand.
Following an Industrial Court ruling that ordered either the reinstatement of the workers or payment of their terminal dues, KCC prepared a compensation schedule.
This included terminal benefits amounting to Sh109,640,482 and outstanding SACCO dues of Sh92,803,457.
However, in July 2020, a three-judge bench at the Court of Appeal overturned a High Court ruling, which had held the newly incorporated New KCC liable for the terminal dues of the aggrieved workers.
In the ruling, the Court of Appeal shut the door to former employees of overturning a decision that found New KCC liable to pay them over Sh100 million in terminal dues.
A bench of three judges ruled that New KCC, incorporated in 2004, could not take over the liabilities of its predecessor and that the two were separate companies.
Justices William Ouko, Wanjiru Karanja and Patrick Kiage, however pleaded: "Having said so however, and legalities aside, we hold onto the hope that the Attorney-General will find it in him to advise government to honour its word and pay the 1st respondents who have suffered long."
The former employees led by John Kahiato Bari had sued New KCC seeking Sh109,640,482. They also sought Sh92,803,457 refund that the company failed to remit to Maziwa Sacco.
The judges expressed hope that the Attorney-General would advise the government to honour its commitments.
Responding to queries from Senators Gloria Orwoba and Mohamed Faki, on whether New KCC acquired assets of Former KCC, Namada Simoni, the lawyer representing the ex-employees, clarified that New KCC not only acquired assets but also took on liabilities, except those owed to the former employees.
"The only liability that was excluded was the dues owed to these 'wazees' (elderly). 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, National Treasury, New KCC and the Ministry of Cooperatives and MSME Development, in a bid to resolve the matter.
