The Public Investments Committee on Social Services, Administration, and Agriculture (PIC-SSAA), chaired by Emmanuel Wangwe (Nabakholo MP), questioned Nyayo Tea Zones Development Corporation over its decision to dismiss staff following an unexplained loss of stocks.
During the Committee’s review of the Corporation’s audited financial statements for the financial years 1996/1997 to 2023/2024, lawmakers expressed concerns about the disciplinary actions taken without conclusive evidence of wrongdoing.
Appearing before the Committee, the Corporation’s CEO, David Chepkony, admitted that investigations into the missing stocks were inconclusive.
Although the staff in charge of the store reported a break-in and theft, further inquiries suggested it could have been an inside job. Insurance compensation was not possible, as there was no evidence of forced entry.
“When this matter was reported to the police, investigations showed that the stores were not broken into. There were no signs of forceful entry, but items were missing, suggesting that they could have been taken over time,” the Corporation’s Director of Human Resources told the Committee.
“The insurance would only compensate if there was proof of forceful entry. As a result, all staff involved were subjected to disciplinary measures, leading to dismissal.”
The Committee also raised concerns over the Corporation’s long-standing issues with outstanding trade debtors. Management explained that it has been a persistent challenge spanning several years.
“The nature of our operations often requires staff to clear their debts with the Corporation when leaving,” the Finance Officer explained.
“Some managed to settle their debts fully, but others, unfortunately, were unable to do so.”
In cases where debtors had passed away, the Corporation maintained a cautious approach.
“In such cases, we don’t write off the debt immediately. We hold on to the claim and explore whether it can be offset against any benefits due,” the Finance Officer noted.
For former employees who moved to other institutions, the Corporation said it actively pursues repayments. Currently, a provision for doubtful debts amounting to KSh 3.3 million has been made to cover amounts owed by former staff who have left the organization.
The Committee is expected to issue further recommendations following its ongoing review of the Corporation’s financial and operational practices.
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