8 December 2012

Kenya: KEPSA and FKE Fault Court Over KQ Ruling

EMPLOYERS and a private sector lobby group have accused the judiciary of meddling in affairs of private businesses warning that the trend could lead to divestments.

Kenya Private Sector Alliance and Federation of Kenya Employers yesterday raised concerns over some recent court decisions which they said will hurt business.

The group took particular issue with the reinstatement of sacked KQ workers on Monday, a ruling they said, is unrealistic given that the airline's finances cannot support rehiring of the employees.

"If we are to create jobs, we require a thriving private sector that has a freehand to do legitimate business and take decisions based on commercial realities," said the two lobby groups in a statement.

The group cited other examples including reinstatement of managing director of Kenya Literature Bureau and the group managing director of Premier Group of Industries.

"We have noted that in most of the Judgments the Judges have ordered for maximum compensations payments of up to 12 months salary as damages, costs and interest at court rates," said KEPSA and FKE.

They said that some of the orders given were inconsistent and in conflict with the law and established Industrial relations practice.

"The court has become a stumbling block in the country's efforts to manage costs and deliver value to shareholders and the economy."

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