It was further stated that Spectre International is liable to refund the employee’s contributions towards the Provident Fund but failed. Finally, the court ordered that the parties meet, compute, and agree on the amounts declared as due in terms of Sacco deductions and the Provident Fund. However, the parties could not agree on the computations, and on September 21, 2023, the Court directed the employees to file their computations within 7 days (the claimants filed their computations on September 22, 2023, while Spectre International filed its computations on September 8, 2023). The Court took submissions on the computations on October 12, 2023, with a view to having a settlement
By The Weekly Vision Team
Spectre International has been ordered by the Employment and Labour Relations Court in Kisumu to remit Ksh. 18,965,797/72 deduction from 166 employees in Sacco contributions, which the company has so far failed to do. The bottom line of the case is in a judgment delivered on May 31, 2023, where the Court issued a declaration that Spectre International is liable to refund the employees’ contributions deducted towards Sacco’s contributions but not remitted to Sacco.
The company’s chairman is Siaya Senator Dr Oburu Odinga, while ODM party leader Raila Odinga’s wife, Ida Odinga, is the managing director. Other directors are Raila Odinga Jr. and Israel Agina, while Judy Owino is the MD’s assistant and Yvonne Odinga is the Human Resources and Administrative Manager. The chief accountant is Nellie Cheptoo, while Justus Biwot is the firm’s technical manager. In a judgment dated December 6, 2023, by Judge Stephen Radido, it reads in part, “In settlement of the sums due under the judgment delivered on May 31, 2023, the Court endorses and adopts the computations filed by the Claimants in Court on September 22, 2023, in the sum of Kshs 18,965,797/72.”.
It was further stated that Spectre International is liable to refund the employee’s contributions towards the Provident Fund but failed. Finally, the court ordered that the parties meet, compute, and agree on the amounts declared as due in terms of Sacco deductions and the Provident Fund. However, the parties could not agree on the computations, and on September 21, 2023, the Court directed the employees to file their computations within 7 days (the claimants filed their computations on September 22, 2023, while Spectre International filed its computations on September 8, 2023). The Court took submissions on the computations on October 12, 2023, with a view to having a settlement.
During the hearing, the employees urged the Court to reject the computations by their employer because the computations only factored in contributions that had been made by the employees and not the employer, while both had been making contributions to the Provident Fund. They also contended that their computations reflected the 13 months awarded by the Court, while Spectre International had based its computations on 6 months.
Concerning the Sacco contributions not remitted, the employees argued that Spectre International computations had completely omitted to include the said unremitted contributions. The Court considered the material placed before it and resolved that both the employees and the employer were required to make contributions towards the Provident Fund and, therefore, it was incorrect and mischievous of the employer to factor only the employees’ contributions while computing the refunds due.
Further, Spectre International did not place before the Court any evidence during the hearing that it made any direct payments to the trustees of the Provident Fund on behalf of the employees during the material period.
In the same Kisumu court, Spectre International had been sued by Fredrick Otieno Oswe, who was an employee of Spectre International in May 2008. On or around February 8, 2010, Oswe applied for a loan from Equity Bank Ltd., which was approved, and the security was his salary. The loan was to be repaid in 60 monthly instalments of Ksh. 14,729. On February 9, 2010, Oswe signed a Loan Authorization Form instructing Spectre to make monthly deductions from his salary (through the payroll) and remit them to Equity Bank.
On November 15, 2017, Oswe instituted the instant cause, alleging that Spectre had not remitted the loan deductions to Equity despite making deductions from his salary, leading to loan arrears of Ksh. 624,579 as of March 14, 2018. He also alleged that Spectre had made deductions from his salary beyond the 60 months.
In his affidavit, he demanded that the court order Spectre International to pay him the unpaid salary arrears of Ksh. 164,836 together with interest thereon from the date when they fell due until payment in full. The matter was heard on October 12, 2023. The Specter International Managing Director, Ida Odinga, and a Credit Manager with Equity testified. Oswe complained that Spectre did not regularly remit deductions made from his salary towards the loan repayment and that Spectre made deductions beyond and above what had been agreed.
He produced copies of his bank statements from Chase Bank Ltd. and KCB Bank Ltd. The statements leave no doubt that Spectre made monthly deductions from his salary for repayment of the loan. Equity also produced copies of the loan account statements, and the statements show a loan balance of Ksh. 624,579 as of March 1, 2018. The loan repayments were scheduled to end on or around April 30, 2015.
A judgment by Judge Stephen Radio on December 6, 2023, reads, “In light of the above, the Court issued a declaration that Spectre International is liable to settle the outstanding loan arrears together with interest and penalties due to Equity Bank. An order is hereby issued awarding Oswe Kshs 117,832/- as against the Spectre International”.
