Retrenched Workers Secure Injuction Against Telkom Kenya Sale Over 3.2bn.

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High court barred Telkom Kenya from entering agreements with a third party regarding the properties until it settles the award granted by the court of Appeal nearly three years ago to the 997 former workers.

The telecommunications company is expected to pay them sh 3.2 billion in severance benefits. The former employees through their lawyer to present the orders to Telkom Kenya and Attorney General Githu Muigai and they are expected to respond to the court in seven days and appear in court on May 15 for confirmation of compliance.

“Pending the interparties hearing on this case, I hereby issue a temporary injuction restraining Telkom Kenya Limited and Attorney General from entering into a sale of Telkom Kenya to a third party, selling any of its 37 listed properties among others or until it shall have settled the claimants’ dues,” said Justice Marete.

The retirees who were retrenched in 2006 claim Telkom Kenya has started to dispose of its prime properties in the face of a biting financial crisis that could render it bankrupt. The company however could end up insolvent even after disposal of prime properties and given the liquidity crisis, it would be possible for the former employees to be compensated.

Telkom was to pay the workers two-and a half month’s salary for every year worked and a golden handshake which it did not honour therefore breaching the terms of the retrenchment.

The restructuring programme saw contracts for 2,500 employees aged more than 50 years terminated.