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Government to pay Shs4 billion to former KCC staff

Former employees of Kampala City Council (KCC), which was transformed into Kampala Capital City Authority (KCCA), who were retrenched almost 10 years ago, will receive their terminal benefits in July this year.

The State Minister for Finance (Planning), Hon. David Bahati, told Parliament that Shs4.08 billion was provided in the budget for the 2020/2021 financial year and will be paid out to the former employees of KCC following a High Court verdict and Presidential directive on the matter.

“The Shs4.08 billion has been budgeted for in the next financial year and will be paid in July,” said Bahati during the plenary sitting on Wednesday 13 May 2020.

In 2012, 10 former employees of defunct KCC led by former Principal Assistant Town Clerk for Makindye, Justine Kasule, petitioned court alleging that their services were illegally terminated 17 months after KCCA came into being.

The ex-workers sued the Ministry of Public Service, then KCCA Executive Director, Jennifer Musisi, KCCA, Attorney General and the Secretary, Public Service Commission challenging the use of what they called illegal administrative guidelines, issued contrary to those under KCCA Act.

On April 24 2018, Justice Mugambe ruled that the termination was embarrassing and inconveniencing because the applicants were dismissed unceremoniously before attaining 60 years as per laws pertaining to civil servants, and thus awarded each of the 1,013 applicants with general damages of Shs5 million. 

The Minister was however, challenged by Kawempe Division North MP, Hon. Abdulatif Sebaggala, who said that the figure provided for the ex-workers was lower than what was the court ruled.

“There are over 1,000 ex-workers of KCC who were to benefit from the court award of approximately Shs91 billion. I believe the Minister has to get more information especially the judgement made by the High Court so that he can come up with a clear figure for payment,” said Sebaggala.

He added that the figure of shs4.08 billion had not appeared anywhere, not even in the Presidential directive on the matter, observing that the delay to pay the terminal benefits had affected the welfare of many of the ex-workers.

Bahati clarified that the payment registered at the Finance Ministry, of the terminal benefits, is in line with a court order benefiting 449 staff who were retrenched from KCC in 1992.

“If you have any other figure, we can compare notes and harmonize, after this plenary sitting,” he said.

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