Senators have rejected a proposal from the state to establish an inter-ministerial committee aimed at resolving the ongoing dispute between KCC and its former employees, which involves compensation claims exceeding Sh200 million.
Solicitor General Shadrack Mose proposed the inclusion of the ministries of Agriculture, Cooperatives, and the National Treasury to audit and verify the claims of ex-workers. “The committee should gather, audit, validate, and recommend whether to settle these claims and to what extent, within reasonable timelines,” he said during his appearance before the Senate’s Labour and Social Welfare Committee on Thursday.
However, committee members dismissed Mose’s proposal, arguing it would lead to unnecessary bureaucratic delays. Nominated Senator Gloria Orwoba emphasized that the Senate was well-equipped to handle the issue without forming another committee. “We have addressed significant national matters within this committee, including the concerns of tea farmers,” she stated.
Orwoba pointed out that substantial resources had recently been allocated to the New KCC, including Sh700 million for modernization and Sh1 billion to ensure timely payments to farmers. “Given these resources and the Sh200 million sought by the petitioners, why can’t we prioritize settling these dues?” she asked.
Kilifi Senator Stewart Madzayo drew comparisons to previous Senate-led resolutions in labor disputes, citing the successful mediation between Kenya Railways and its pensioners. “Many petitioners are now advanced in age since this issue began in 1997. We can achieve a swift resolution if we apply the same approach,” Madzayo noted.
Senator George Mbugua, the committee’s vice chairman, expressed frustration over the lengthy delays, emphasizing the urgency of the matter. “Some petitioners have passed away while awaiting justice. We cannot let this drag on any longer,” he urged, calling for a clear timeline for resolution.
The committee is working to facilitate payments to former KCC workers following a petition submitted to the House. Raphael Nambisia, a representative of the petitioners, recounted their struggles, which began in the late 1990s due to the government’s failure to pay KCC for supplying milk to primary schools under the School Milk Programme, leading to heavy debts and misallocation of funds.
In 1997, KCC employees faced unjust workplace barring while seeking clarification on unpaid Sacco contributions, igniting a prolonged legal battle from the industrial court to the Court of Appeal. Following a ruling that mandated either their reinstatement or payment of terminal dues, KCC devised a compensation plan, totaling Sh109.64 million in terminal benefits and Sh92.80 million in outstanding Sacco dues.
However, in July 2020, a three-judge bench of the Court of Appeal overturned a High Court ruling that held New KCC responsible for the terminal dues, clarifying that New KCC, incorporated in 2004, was a separate entity and not liable for its predecessor’s obligations. The judges urged the state to honor its commitments to the affected workers.
The former employees, represented by John Bari, are seeking Sh109.64 million along with a Sh92.8 million refund for Sacco contributions that were not remitted.
