The late President Daniel Arap Moi. Inset: New KCC head office in Nairobi.
When former President Daniel Arap Moi introduced free school milk programme, popularly known as Maziwa ya Nyayo, in 1979, the scheme proved to be a blessing to many Kenyans.
Millions of children found their way to public primary schools driven by the presence of the small packets of milk that soon became one the most sought-after items in the schools.
For the 20 years the programme was in place, staff at the Kenya Cooperative Creameries (KCC) toiled to make the ever-surging demand for what at the time became a precious commodity never exceeded supply.
But rather than bask in the glory of their contribution to the advancement of education in the country, the former employees have been left languishing in poverty, nearly three decades since the programme came to an end due to lack of funding.
While school-going children drank litres upon litres of the sweet milk, little did they know that down their throats also went terminal benefits for the employees.
The programme is now at the center of untold suffering by former employees of the government-owned Creamery.
Mr Bernard Kalanda, James Wachiuri, Akola Nambisia and Emmanuel Muema are just some of the ex-staff now paying for the mismanagement of the programme that endeared the late Moi to many Kenyans.
Mismanagement at the giant State-owned company led to its collapse and after a failed takeover bid to resuscitate the firm, all employees were summarily terminated in November, 1997, following a strike.
Down went their terminal benefits, gratuity and unremitted Maziwa Sacco dues amounting to Sh204.4 million.
Mr Nambisia, a former employee of KCC, recounted to the Senate Labour and Social Welfare committee the origins of their plight, tracing it back to the late 1990s.
The despondent 69-year-old, who worked at KCC between 1978 and 1997 as a salesman and driver, narrated how the famous milk scheme is at the heart of their decades-long grievances.
He said a number of them have since died in misery and suffering without being paid their dues and those who are still alive continue to suffer.
“The school milk programme was the root of the problem,” said Mr Nambisia. “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.”
With the company’s debts mounting exacerbating its financial challenges, the Creamery was forced to redirect funds meant for workers’ Sacco contributions to the milk programme.
According to the sexagenarian, when KCC employees sought explanations for the non-remittance of their Maziwa Sacco contributions in 1997, they were unjustly barred from their workplaces.
The move, he said, marked the beginning of a protracted legal battle, spanning from the Industrial Court to the Court of Appeal.
Mr Kalanda, who is the chairperson of a welfare group of the former employees, worked at the company between 1984 and 1997.
For 62-year-old Mr Wachiuri, he worked as a laboratory technician while Mr Muema worked as a plant operator between 1985 and 1997.
“We appreciate the committee for making all the efforts to reach out to the institutions involved but unfortunately they are not here. They need to be summoned afresh so that this issue we have pursued for 26 years comes to a reasonable closure,” said Mr Kalanda.
The development comes after the management of New KCC failed to appear before the committee chaired by West Pokot Senator Julius Murgor.
The former employees petitioned the Senate in July this year asking senators to help end the decades-long dispute over their compensation.
In the petition, they want to be paid their terminal benefits, contributions to Maziwa Sacco and the provident fund dues deducted by KCC but not remitted to the Scheme, all totaling to Sh204.4 million plus interest accrued since 1997.
In the petition, the ex-staff said that after their dismissal, their union filed a case at the Industrial Court where the court ruled that the employees were entitled to their terminal benefits.
Following the court ruling that ordered either the reinstatement of the workers or payment of their terminal dues, KCC prepared a compensation schedule.
The schedule included terminal benefits amounting to Sh109.6 million, outstanding Sacco dues of Sh92.8 million and Sh2 million from the provident fund.
However, another case was filed in the Employment and Labour Relations Court, and the court ruled that the employees be paid their dues by the new KCC and the government.
Nonetheless, the new KCC appealed the decision and the Court of Appeal overturned the Labour Court's decision.
In July 2020, a three-judge bench at the Court of Appeal overturned the High Court ruling, which had held the newly incorporated New KCC liable for the terminal dues of the aggrieved workers.
The judges expressed hope that the Attorney-General would advise the government to honour its commitments to pay the workers who had suffered for long.
“Considering the timelines for concluding on petitions brought to the Senate, we need to be forward-thinking should we need to direct New KCC to sell off some assets to pay off the debts,” said Senator George Mbugua, the committee’s vice chairperson.
The Senate committee 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 issue after they failed to appear before the panel.
Nominated Senator Miraj Abdillahi voiced her frustration at the non-attendance of the government officials, noting that the petitioners had made significant efforts to be present.
“The petitioners travelled from far and wide to attend this meeting, only to be met with the absence of those from whom we seek answers. They should be surcharged to reimburse the petitioners who are searching for justice,” said Ms Abdillahi.
Senator Murgor called upon Advocate Namada Simoni, who represents the petitioners, to provide a comprehensive list of the former KCC employees he is representing to clarify the number of beneficiaries involved in this case.
He reiterated the committee’s commitment to ensuring that justice is served and that the ex-employees receive their due SACCO deductions and terminal benefits.
“This committee stands for justice, and we will stand by the former employees to ensure they receive what they are rightfully owed,” he said.
