Dairy farmers claim ex-MP too old to lead New KCC

NAIROBI, KENYA: Dairy farmers are seeking to remove former politician Matu Wamae 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 dairy farmers drawn from Murang'a County also claimed that Mr Wamae has irregularly sat at the helm of New KCC Limited 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.

The dairy farmers complained that Mr Wamae is running down the state cooperation and that under his leadership, farmers are being paid little for milk supply to the corporations while the payments are at times delayed due to losses being made.

According to an audit report by auditor general, the corporation made a Sh66 million loss before tax which reduced the amount of earnings to shareholders.

Mr 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 Limited in 2005 by then Co-operatives Minister Njeru Ndwiga for a three-year term which was renewed in 2008 by former President Mwai Kibaki.

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

But the farmers argued that allowing Mr Wamae to serve in the board despite his advanced age for a 6th term was in breach of good corporate governance which sets the limit of board members to two terms of three-years each.