Court Orders Jambo Biscuits To Pay Britania Employees Sh37.7M Deducted But Not Remitted To Sacco

Jambo Biscuits Limited will now pay Britannia Sacco Sh 37.7 million, monies deducted from employees of biscuit manufacturer but which were not remitted to the Sacco.

“The plaintiff has proved its claim. I enter judgement for the Sh37,707,107.40 as prayed,” ruled Tuiyot.

However, the judge said the plaintiff did not specify the rate of interest it seeks on the amount, it shall attract interest at court rates from the date of filing of the suit.

The basis of Britannia’s claim is that Jambo made deductions from its employee’s salaries for the months of July 2007 to December 2007, but failed to forward the amount to the Sacco as required.

It was added that towards part of settlement of the claim, Jambo made eight payments amounting to Sh. 904,000 during the months of November 2007, December 2007 and January 2008reducing the principal debt from Sh. 2,312,518 million to Sh. 1,408,518 million. The amount claimed was substantially more being Sh. 37,707,107.40 million.

Testifying in court, Daniel Kaliku had asked the court to compel the employer to pay the amount plus interest of 5 percent per month.

Britannia Sacco, a co-operative society, filed a case in court seeking a claim of Sh37.7 million

In defence filed on November 21, 2013, Jambo denied that its employees are members of Britannia Sacco or that it made deductions from its employees on an account of that membership.

The biscuit maker argued that any deductions made were duly remitted to Britannia and denied owing the Sacco the amount. The judge, however, ruled that the Sacco had proved the claim.