The High Court has ordered the government to pay 29.1 billion shillings to former employees of the defunct Coffee marketing Board as special damages for being retrenched without being paid their terminal benefits.
More than 1500 employees of the government owned company had their services terminated between 1991 and 1998 under the Public Enterprises reform and Divestiture Act of 1993. Their terminal benefits were meant to be paid from the proceeds of divestiture but that didn’t happen. The matter was brought to the attention of the president who directed that the former employees be paid. But government technocrats did not release the funds prompting the former employees to take the case to court. Coffee Marketing Board was a limited liability company fully owned by the government in the 1970’s. The export of Coffee was the monopoly of the company to protect small coffee producers from fluctuations in the price of the commodity on the world market.
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