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New Kenya Cooperative Creameries Limited v. John Kahiato Bari James Waciuri Kanadea Jackson Warui Wanjau All suing on behalf of themselves and representatives of all former employees of the Kenya Co-operative Creameries Limited & Attorney General

(2020) JELR 98466 (CA)

Court of Appeal  •  Civil Appeal 191 of 2018  •  10 Jul 2020  •  Kenya

Wanjiru Karanja, William Ouko, Patrick Omwenga Kiage



The 1st respondents herein were former employees of the Kenya Co-operative Creameries Limited (KCC), which has since been wound up. Prior to the claim that is part of this appeal, the 1st respondents, through their Union had filed another claim against KCC via Industrial Cause No. 24 of 1998. They were seeking to be paid their terminal benefits after being summarily dismissed from employment. The court found that they were entitled to the said benefits. Pursuant to the court’s order, it was alleged that the management of KCC produced a schedule of payments due to every employee in terms of their terminal benefits and gratuity totalling to Kshs. 109,640,482 plus the unremitted Maziwa Sacco dues totalling Kshs. 92,803,457.

Shortly thereafter, the 1st respondents discovered that an official receiver was appointed by a third party creditor, Kenya Commercial Bank (KCB) to take over KCC’s assets in a bid to recover monies advanced to it. In a move to secure their interes…

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