KENYA – The Kisumu High Court in Kenya has issued orders preventing Moses Kiprop, the newly appointed Managing Director of Chemelil Sugar Factory, from assuming office.
The court’s decision comes in response to a petition filed by farmer Michael Sidigu, challenging Kiprop’s appointment, as published in a special gazette notice by Agriculture Cabinet Secretary Mithika Linturi.
Sidigu’s petition, filed at the Kisumu Employment and Labor Relations Court under Judge Justice Stephen Radido, cites violations of labor laws and the factory’s own human resources guidelines as grounds for the challenge.
According to the factory’s guidelines, the ideal candidate for the Managing Director position should be under 56 years old. However, Kiprop, the appointed MD, is 58 years old, prompting Sidigu to argue that the appointment is inconsistent with the established rules.
Adding complexity to the situation, Sidigu asserts that the appointment lacks a crucial concurrence letter from the Chief of Staff and Head of Public Service, a procedural requirement that, if true, could cast doubt on the legitimacy of the entire appointment process.
The court has scheduled the case for a hearing on January 23, 2024, with the respondents named in the suit including the Attorney General, the Board Chairman of Chemelil Sugar Factory, Agriculture CS Muthika Linturi, and the Public Service Commission.
In the interim, Jacqueline Kotonya, the acting MD at the state-owned mill, was expected to hand over to the newly appointed MD, pending the outcome of the legal proceedings.
This development unfolds against earlier changes proposed by the government to transform the sugar company.
The National Assembly had tabled a memorandum suggesting the potential merging of Chemelil and Muhoroni Sugar companies, coupled with a restructuring of balance sheets aimed at enhancing productivity in the sector.
Chemelil Sugar Factory has faced a myriad of challenges, including a legal dispute with the National Social Security Fund (NSSF) over alleged failure to remit statutory deductions amounting to Kes33 million (US$212752).
The company had been accused of neglecting to remit workers’ statutory deductions totalling Kes20 million (US$128,941) between November 2016 and February 2018.
To address ongoing managerial issues, the court had previously directed Agriculture CS to facilitate the recruitment of a new CEO for the sugar company and to either appoint or advertise for the recruitment of the board of directors.
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