Anthony Mbaabu Mugwika & 7 others v Ruiri Farmers Co-operative Society Limited [2018] KEELRC 597 (KLR)

REPUBLIC OF KENYA

IN THE EMPLOYMENT & LABOUR RELATIONS

COURT OF KENYA AT MERU

CAUSE NO. 50 OF 2018

(Formerly Nyeri ELRC 154 of 2018)

ANTHONY MBAABU MUGWIKA &7 OTHERS....................CLAIMANTS

VERSUS

RUIRI FARMERS CO-OPERATIVE SOCIETY LIMITED...RESPONDENT

RULING

1. This claim proceeded as an undefended cause. The Claimants, namely, Anthony Mbaabu Mugwika the secretary manager, Ann KendiNdegwa the cashier, Silas Kimathi the society driver, Daniel KaumeM’Ataya a factory manager, John Nteere M’Ndegwa a factory manager, Beatrice Gakii Kaibunga a cherry recorder, Justus Mutea M’Ikunyua a turn man and Daniel Karithi Ncebere a night watchman assert that the claim is for unpaid salary arrears. They claim salary arrears from 2001 till 2017 amounting to Kshs. 11,528,664. 50; general damages for the unlawful, wrongful and illegal denial of salary arrears and allowances; any other relief the court may grant as well as costs of the suit plus interest. In testimony adduced by the Claimants herein, there is proof that there is a sum owed to former and current staff. The Inspection Report of 16thJanuary 2016 by the Co-operative Auditors Mr. Zachary Njeru and Mr. Nicholas Kariuki paints a picture of the financial situation at the Respondent and from it, I discern that the Respondent is reeling under massive debt. According to the auditors, there are debts owed to the current and former employees of the Respondent including a judgment sum from the Nyeri Labour Relations Court in another case concluded in 2017. A total of Kshs. 28,072,286/- was stated to be owed as at December 2016 in salary arrears to the present and former staff.

There is also a surcharge of Kshs. 1,129,892/- owed to theCommissioner of Co-operatives by the staff.

2. In my view, in order to make a proper determination of the matters germane to this suit, there is need for the Auditors to give a breakdown of the sums tabulated as being due to the current staff in the sum of Kshs. 10,571,510/-. The Auditors are to avail the breakdown for each of the 8 Claimants herein within 30 days of today’s date.

It is so ordered.

Dated and delivered at Meru this 7th day of November 2018

Nzioki wa Makau

JUDGE