Pyrethrum authority reaches pay deal with ex-workers

Pyrethrum farm at Mau Narok in Nakuru County. FILE 

By GERALD ANDAE

The Pyrethrum Regulatory Authority (PRA) has reached an out-of-court settlement with former employees, allowing for its bank accounts to be freed.

The advocate for the employees said the dispute over the pension dues would be settled on mutually agreed terms and that the case would be withdrawn from the High Court.

“We agreed with the authority that there be a grace period of six months within which the money owed to the affected employees would have been cleared,” said Benson Milimo.

More than 100 ex-workers who were retrenched in 2009 had sued PRA— formerly the Pyrethrum Board of Kenya (PBK)— for additional compensation of Sh129 million but were only granted Sh61 million by the court.

PRA managing director Alfred Busolo said Sh10 million would be paid to the workers immediately and the balance of Sh51 million cleared by June this year.

“We have made an undertaking of clearing the debt by June this year to allow the factory to operate effectively,” said Mr Busolo.

The workers had been paid Sh195 million as compensation by the government. The award of Sh61 million was given in May last year with the court ordering that the amounts be settled by November.

READ: Ex-pyrethrum board workers demand pay

The employees moved to court in December after the authority failed to pay the dues, getting orders to attach the bank accounts held in Co-op Bank.

This crippled operations at the authority, threatening payments to farmers for crop deliveries and staff salaries.

PRA could not pay the Sh20 million received from the government for flower deliveries for the previous six months ago which was in arrears.

The authority owed farmers Sh55 million up to October on the flowers delivered. The government gave the board Sh50 million in October to pay farmers and salaries to employees.

Kenya used to supply up to 70 per cent of the total world pyrethrin demand which now stands at 8,000 tonnes. Kenya now produces only 500 tonnes per year.

Kenya controls 52 per cent of America and Canadian, 40 per cent of the European, six per cent of Australia and Asia and two per cent of African natural insecticides market.