In a recent court ruling on September 15, 2023, former employees of Nyanza Textile Industries (Nytil) have been awarded a compensation of 6.2 billion Shillings by the High Court in Jinja. Nytil, originally established in 1954 as a government-owned company, operated until 1995 when it was sold to Southern Range Nyanza Limited.
Previously, their compensation claims had been dismissed by a Jinja Court in 2009. In 2019, the claimants appealed, leading to the recent order for the government to compensate them. The Attorney General had failed to instruct the Auditor General’s office to verify their claims.
Justice Faridah Shamilah Bukirwa Ntambi, in her ruling, stated that 3,426 former workers are entitled to receive their terminal benefits totaling 6.2 billion Shillings. One of the claimants, Mr. Mallon Dobayo, was granted permission to pursue his claim independently, reducing the total number of verified claimants to 3,425. Justice Bukirwa also ordered the government to pay 3 million Shillings in general damages to each of the 3,425 ex-workers.
The successful claimants are entitled to the costs of the suit and general damages. Interest on general damages at a rate of 10 percent per annum from the date of judgment until full payment has been made was also ordered.
Additionally, the government has been instructed to pay the applicants interest on the terminal benefits at a rate of 8 percent for the past 28 years, dating back to June 1995 until full payment has been made.
After the ruling, Mr. Machel Nyambok, the applicants’ lawyer from M/S Alliance Advocates, expressed satisfaction, noting that this judgment had been long overdue. He also highlighted that relatives of those who passed away before the judgment are also entitled to receive their due compensation and advised them to start the process of obtaining Letters of Administration.
Former Cost Accountant, Mr. Francis Ssenabulya, emphasized the importance of the government fulfilling its obligation, given the taxes it had collected from the now-defunct Nytil. Meanwhile, 74-year-old former security guard, Mr. Moses Musaazi, expressed his eagerness to receive the money, stating his intention to use it to build a house in Masaka, where he plans to spend the rest of his life.
