Court bars Telkom from selling assets

The Industrial Court on Thursday temporarily stopped Telkom Kenya Limited from selling 37 of its prime properties.

Justice Njagi Marete issued the orders barring the largely French-owned Company from entering into sale agreement with a third party until it has settled an eight-year-old award of Sh3.2billion to some 997 retrenched workers.

“Pending the inter parties hearing of this case, I hereby issue a temporary injunction restraining Telkom Kenya limited and the Attorney General, or any person whatsoever acting on their behalf from entering into a sale of Telkom Kenya to a third party or selling any of its 37 listed properties among others until it settles the claimants’ dues,” said Justice Marete.

The judge directed the former employees though their lawyer Antonny Oluoch to serve Telkom and the AG with the orders before appearance in Court on May 15 for confirmation of compliance and further directions.

In the suit, the employees who were retrenched in 2006, claim that Telkom has begun to dispose its prime properties in a bid to clear its financial crisis and avoid falling into bankruptcy.

They argue that the disposal of assets would greatly destabilise their payment agreement as earlier decreed by the Court of Appeal.