NAIROBI, Kenya, Sept 19 – The Ministry of Labour and Social Protection has expressed regret over the prolonged delay in the payment of terminal dues owed to former employees of Pan African Paper Mills in Webuye, Bungoma County.
The issue, which has been a source of concern for years, was recently raised in the Senate by Bungoma Senator David Wakoli.
The factory, once a major employer in the region, was placed under receivership in March 2009.
Over 1,500 workers were rendered redundant, and despite promises of compensation, many former employees have yet to receive their terminal benefits.
The government had initially earmarked Sh229 million as compensation to cover arrears of pay, holiday pay, and notice pay.
In response to Senator Wakoli’s question on the reasons for the payment delay, the State Department for Industry acknowledged that the funds requested from the National Treasury in 2021 were not factored into the budget.
“Due to the budget ceilings at the sector working group for FY 2024/2025, the amount to pay former employees could not be covered,” the Ministry stated.
The Ministry, however, maintains that efforts to expedite the payments are underway.
The government body has appealed to the National Treasury to prioritize the matter in the upcoming fiscal period, but no clear timeline for the payments has been provided yet.
“We are working closely with the Treasury to secure the necessary funds,” said a spokesperson from the Ministry of Investment, Trade, and Industry.
“Our goal is to ensure that all former employees receive their dues as soon as possible.”
As the wait for the payments drags on, the former employees, many of whom rely on these funds for their livelihoods, continue to call for a swift resolution to the issue.
