MPs Grill Nyayo Tea Zones Corporation Over Staff Dismissals and Outstanding Debts
“Insurance would only compensate if there was proof of a break-in. Without it, we had to take internal action,” the HR Director added.
The Public Investments Committee on Social Services, Administration, and Agriculture (PIC-SSAA), chaired by Nabakholo MP Hon. Emmanuel Wangwe, has put the Nyayo Tea Zones Development Corporation on the spot over staff dismissals linked to stock losses and unresolved long-term debts. Photo/Parliament of Kenya.
By Robert Assad
The Public Investments Committee on Social Services, Administration, and Agriculture (PIC-SSAA), chaired by Nabakholo Member of Parliament Emmanuel Wangwe, has put the Nyayo Tea Zones Development Corporation on the spot over staff dismissals linked to stock losses and unresolved long-term debts.
While examining the Corporation’s audited financial reports spanning from the 1996/1997 to the 2023/2024 financial years, committee members questioned the rationale behind the dismissal of employees despite inconclusive investigations into missing stock.
Corporation CEO Mr. David Chepkony admitted before the committee that while initial reports pointed to a break-in, police investigations found no evidence of forced entry. This raised suspicion of internal collusion.
“When reported to the police, findings showed no signs of forced entry into the store, even though items were missing. This suggested the loss may have occurred over time,” said the Corporation’s Director of Human Resources.
Due to the lack of physical evidence, the Corporation’s insurance declined to compensate for the losses. Consequently, staff implicated in the case were subjected to disciplinary proceedings and eventually dismissed.
“Insurance would only compensate if there was proof of a break-in. Without it, we had to take internal action,” the HR Director added.
Lawmakers also voiced concern about unresolved trade debts, some dating back several years. The Corporation’s Finance Officer explained that staff are required to clear any outstanding debts upon exit. While some complied, others failed to settle their obligations.
“In cases involving deceased debtors, we do not write off the debt immediately. Instead, we examine possibilities of recovering the amounts from any pending benefits,” the officer said. For former staff now employed elsewhere, recovery efforts are still ongoing.
Currently, the Corporation has earmarked KSh 3.3 million as a provision for doubtful debts owed by ex-employees. The committee will continue reviewing the Corporation’s financial practices and is expected to issue its recommendations in due course.
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