State awards Sh74m to former PanPaper workers

Business Daily Kenya:  The National Treasury has released Sh74 million as ex gratia payment to about 1,300 former employees of PanPaper Mil...

Business Daily Kenya: 

State awards Sh74m to former PanPaper workers. Photo/File

The National Treasury has released Sh74 million as ex gratia payment to about 1,300 former employees of PanPaper Mills. The cheque was handed over to the former receiver manager, PricewaterhouseCoopers by the Industrialisation Principal Secretary, Nduati Mwangi in Webuye over the weekend.

Receivers settled the statutory component of employees’ claims in 2009 in accordance with the Companies Act and the applicable insolvency laws.

However, employees are still owed their unsecured component of fees but the government offered to make an ex-gratia payment to former employees that were in employment at the time the factory was placed under receivership.

Employees will each receive three months’ salary as at the receivership date. Nduati announced that at least 400 former employees received their dues by June 9 while majority will be paid in the course of this week subject to their providing relevant documentation for verification and validation.

The factory that had been shut for seven years was sold by the receivers to a local strategic investor, Tarlochan limited, a subsidiary of Rai Group of companies in April 2016.

None of the paper production lines was working at the time of the hand over. Two lines are now operational since the company changed hands in May last year producing approximately between 50 and 60 tonnes of paper daily.

Bungoma Governor , Kenneth Lusaka said the gesture was a fulfillment made by President Uhuru to employees, investors and stakeholders of the paper factory that it would be up and running to improve the lives of Kenyans.

The post State awards Sh74m to former PanPaper workers appeared first on Mediamax Network Limited.

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