Govt To Resolve Longstanding Dispute Over KCC’s Unpaid Terminal Benefits
The national government has established an interministerial committee to address the long-standing dispute over unpaid terminal benefits for former employees of the defunct Kenya Cooperative Creameries (KCC).
This is according to Cooperatives and MSME Development CS Wycliffe Oparanya, who said the move follows a renewed Senate push led by Migori Senator Eddy Oketch.
The dispute dates back to 1999 when KCC was placed under receivership, leaving hundreds of workers without their dues.
CS Oparanya explained that KCC Ltd was liquidated in 2000, with its assets sold to KCC (2000) Ltd, a private entity, and in 2003, the government repurchased the assets, forming New KCC Ltd as a state corporation in 2004.
“The former employees were part of KCC Ltd, which was liquidated. When New KCC Ltd was established, it was not legally liable for the previous entity’s obligations,” Oparanya stated.
Despite a 2013 High Court ruling in favor of claimants seeking Sh204.4 million, New KCC appealed in 2020 when the Court of Appeal ruled it was not liable but urged the Attorney General to find a resolution.
The interministerial committee, comprising the Ministries of Agriculture, Cooperatives, and Treasury, will audit and verify claims before submitting recommendations to Parliament for budgetary allocation.
CS Oparanya further addressed concerns over unpaid cooperative society shares, revealing that salary deduction claims were under review alongside other employment dues.
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