An interministerial committee has been established by the government to address the ongoing dispute over unpaid terminal benefits for former employees of the defunct Kenya Cooperative Creameries (KCC).

This initiative aims to bring a long-awaited resolution to the matter, which has spanned over two decades.

Cooperatives and MSME Development Cabinet Secretary Wycliffe Oparanya confirmed the formation of the team, which will be tasked with auditing and verifying claims before making recommendations to Parliament for budgetary allocation.

The committee will consist of officials from the Ministries of Agriculture, Cooperatives, and Treasury.

Addressing concerns about unpaid dues, Oparanya explained that the government is also reviewing claims related to salary deductions and unpaid cooperative society shares, alongside other employment-related matters.

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The dispute traces back to 1999 when KCC was placed under receivership, leaving hundreds of workers without their dues.

A year later, the company was liquidated, and its assets were transferred to KCC (2000) Ltd, a private entity.

The government later reacquired these assets in 2003, giving rise to New KCC Ltd as a state corporation in 2004.

However, the compensation claims of former employees remained unresolved.

“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 noted.

In 2013, the High Court ruled in favour of the claimants, awarding them Sh204.4 million.

However, New KCC appealed the decision, and in 2020, the Court of Appeal ruled that New KCC was not liable for the payments but encouraged the Attorney General to pursue a resolution.

This new move by the government signals a renewed push to finally settle the issue, with many hoping that the formation of the committee will lead to a final resolution for the workers after more than 20 years of uncertainty.