This archive report was first published on 22 June 2021.
On August 25, 2020, a photo of Nzoia Sugar Managing Director Michael Makhoha was taken, amidst a court battle over his suspension.
Employment and Labour Court Judge Onesmus Makau has issued an order halting the suspension of Nzoia Sugar Managing Director Michael Makhoha, pending a hearing and determination of the matter.
The court's decision comes after Makhoha, through his lawyer Bryan Khaemba, challenged the suspension by Agriculture CS Peter Munya, arguing that it was illegal.
According to court documents, Makhoha was appointed as the Managing Director of Nzoia Sugar Company Limited on July 14, 2019, and has been lawfully discharging his duties since then.
However, Munya suspended Makhoha through a letter dated June 7, 2021, for a period of three months, effective from June 10, 2021, to pave way for investigations into alleged complaints.
The complaints, which were from various stakeholders and leaders from the region, alleged financial impropriety, non-payment of farmer's arrears amounting to more than Sh 700 million, and withholding of staff salaries to the tune of approximately Sh2 Billion.
Lawyer Khaemba argued that Munya acted ultra vires in suspending Makhoha, contrary to section 5(3) of the State Corporations Act, which vests the power to engage and employ staff, including the Chief Executive, on the State Corporation in the Board of Directors and the Minister.
