Former Kenya Bus staff get nod to pursue Sh532m loss of job award
Branded buses of Kenya Bus Service Limited in Nairobi on August 16, 2013. About 732 former employees of Kenya Bus Service Limited whose contracts were wrongfully terminated eight years ago have been allowed to go after Sh532 million which had been awarded to them by the court. PHOTO | FILE
What you need to know:
- The money had been granted to the workers on September 6, 2007 after successfully proving that their employer, Kenya Bus Service Limited (KBSL), had sacked them without following the law
- They were however sent home in 2006 on unpaid leave on alleged shortage of funds after most of the buses belonging to KBSL were attached by creditors and eventually sold to recover money owed to them by the company
About 732 former employees of Kenya Bus Service Limited whose contracts were wrongfully terminated eight years ago have been allowed to go after Sh532 million which had been awarded to them by the court.
Industrial Court Judge James Rika gave the orders on Friday saying he was satisfied that Kenya Bus Services Management Limited (KBSML) did not have a case in opposing the award.
The money had been granted to the workers on September 6, 2007 after successfully proving that their employer, Kenya Bus Service Limited (KBSL), had sacked them without following the law.
Their efforts to recover the award from their former employer have been met with resistance but last year they got the services of an auctioneer to attach the company property.
KBSML then filed an objection on July 3, 2013, stating that the employees through Transport and Allied Workers Union were seeking to attach its properties to recover the award yet the two entities, KBSML and KBSL, were not the same.
In his ruling, however, Judge Rika noted that, “the objection is part of the prolonged effort by KBSL, not to meet the obligation arising under the award on record.”
The court said that despite the allegations that the two entities were different, it was obvious from the documents filed in court by KBSML that the directors were the same and they had earlier filed documents in court on behalf of KBSL.
“Indeed, they were represented by the same firm of advocates or network of advocates. The objection is therefore dismissed and Transport and Allied Workers Union granted the liberty to proceed with execution,” Judge Rika added.
Most of the employees had worked with KBSL since 1962 as drivers, conductors, mechanics, cleaners and other maintenance staff in various arms of the company.
They were however sent home in 2006 on unpaid leave on alleged shortage of funds after most of the buses belonging to KBSL were attached by creditors and eventually sold to recover money owed to them by the company.
The firm’s creditors included General Motors, Kenya Grange Limited, CFC, CMC, ICDC and Imperial Bank who had a lien over the company’s buses out of which KBSL business completely came to a halt.
According Massimba Mukabanah, the KBSL boss in his affidavit filed in 2011, “the company was doing well until Michuki rules were implemented.” In order to comply, the firm spent Sh160 million.
