Dairy farmers claim former MP is too old to lead New KCC Limited

From left: New Kenya Co-operative Creameries (KCC) outgoing Managing Director Dr. Kipkirui Lang'at flanked by the Company's Chairperson Matu Wamae during an official ceremony at the Company's offices,Nairobi to welcome Nixon Sigey (right) as the new Managing Director of the company. 30/12/2014. PHOTO DAVID NJAAGA

Dairy farmers want former politician Matu Wamae removed as chairman of the New Kenya Co-operatives Creameries on grounds that he is too old to lead the parastatal.

In the suit filed through MMC Africa Advocates, the farmers from Murang'a County also claimed Mr Wamae had irregularly sat at the helm of New KCC Ltd for more than 12 years despite Government guidelines that he should serve for a maximum of six years.

"He is 78 years old, which is way past the 60 years mandatory retirement age for State officers. His advanced age cannot allow him to lead the annual board meetings as farmers feel he does not adequately represent their concerns," said lawyer Peter Munge.

Milk supplied

The farmers complained that Wamae was running down the co-operation and that under his leadership, farmers were being paid too little for milk supplied. They also said payments are sometimes delayed due to losses being made (by the company).

A report by the Auditor General shows the corporation made a Sh66 million loss before tax, which reduced earnings to shareholders.

Wamae first served as an executive director of the Industrial and Commercial Development Corporation in the Jomo Kenyatta government in the 1960s. He then became the Mathira MP between 1983 and 1988, and from 1992 to 1997.

He was first appointed chairman of New KCC in 2005 by Njeru Ndwiga, the Co-operatives minister at the time, for a three-year term that was renewed in 2008 by former President Mwai Kibaki.

In 2011, Mr Kibaki extended Wamae's tenure for a further three years before President Uhuru Kenyatta extended his reign for two consecutive terms in 2013 and 2017.

The farmers argued that allowing Wamae to serve on the board despite his advanced age for a sixth term was in breach of good corporate governance, which sets the limit of board members to two terms of three years each.

Chairman's term

"In any case, renewal of a board member's or the chairman's term should be subjected to evaluation and open to the public. The President failed to comply with the law when he unilaterally appointed Wamae without clear procedures," said Munge.

He said the Public Service Commission (PSC) also failed to advertise the position after Wamae's term expired, which gave the President the leeway to renew his term.

According to the lawyer, State corporations are offices within the public service with regulations on retirement age and should not be abused for political rewards.

"The President should have been guided by the principle of fair competition and merit as the basis for appointment to New KCC. His decision locked out young and qualified people who would have steered and guided the corporation well," said Munge.

He argued that only PSC should have been allowed to assess Wamae's suitability through a competitive process of recruitment.

The farmers want an order quashing Wamae's appointment on account that it was unconstitutional. They also want a declaration that the President has no power to appoint chairmen of State corporations without involving PSC.

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