Petitioner sues over rehiring of New KCC boss for third term

The decision by the New Kenya Cooperative Creameries (NKCC) to allow its managing director Nixon Sigey to continue serving beyond a period of six years has been challenged in court by an aggrieved Kenyan.

Mr David Adema wants the Labour Relations Court to quash decision of the NKCC board of directors dated January 2021 to reappoint Mr Sigey for a third term in office.

His tenure ended on December 31, 2020. He was first appointed to the position in January 2015 and the three-year contract was renewed in January 2018 ending in December 2020.

Mr Adema said in court documents that the board, in extending the contract of the MD, took the step unlawfully because it lacked powers to reappoint him for a third term.

He said the board also breached the provisions of the Mwongozo code of governance for State Corporations, which require that chief executive officers of parastatals to serve a maximum of two terms comprising a maximum cumulative period of six years.

The petitioner argued that CEOs of State corporations are supposed to serve for a three-year term renewable once subject to performance evaluated by the board.

“The petition is not personal dispute. It touches on the interest of many Kenyans whose money is being utilised by Mr Sigey through unconstitutional means,” said Mr Adema who is a former sales marketing representative of the NKCC in the South Rift region.

He argued that it was incumbent upon the board, which is chaired by Dr Ignatius Kahiu, to consider the appointment of the CEO in accordance with the set policy.

Mr Adema further argued that the appointment of the CEO was irregular, fell short of a competitive process, lacked public participation and was not gazetted, hence should be nullified.

He asked the court to issue an order for appointment of an acting CEO for six months pending the recruitment and appointment of a new leader.

He listed the NKCC board and Cabinet Secretary for Agriculture as the respondents in the case while Mr Sigey was named as an interested party.

The petitioner is also seeking an order that Mr Sigey refunds to the State corporation all money paid to him as salaries and other emoluments from January 2021 to the date of determination of the case.

“The government circulars instruments determining the two-year tenure in the public service are law and must be obeyed by all and apply equal to all,” said the petitioner.