Govt to pay 3,500 ex-Nytil

The government has agreed to pay 3,495 former workers of the defunct Nyanza Textiles Industries (Nytil) Shs6.8b in terminal benefits, bringing an end to a 14-year legal battle over non-payment.

Nytil was established in 1954 by the colonial government as a parastatal company; however, post-independence governments ran the enterprise until 1996 when they sold it to Southern Range Nyanza Limited, which is running it to date.

While their compensation claims were dismissed by Jinja High Court in 2009, the claimants appealed and in 2019, the Court of Appeal ordered the government to compensate them.

Jinja High Court Judge, Justice Faridah Bukirwa, who delivered the Attorney General’s consent last Wednesday, said the claimants will, however, have to produce two witnesses to prove claims for damages and costs before Court rules on the same.

She has given the former employees three weeks to file consent forms. They are expected in Court on June 13. 

Mr Machel Nyombok, one of the former workers’ lawyers, said the government must also incur the damages because the case has dragged on for a long time; other claimants have died, while others incurred a lot of expenses, especially on transport.

“Everybody will be paid, including those who are deceased as long as relatives bring letters of  administration,” he said.

Mr Cosmas Okeu, the chairperson of the former staff, said the government owes him about Shs600m.

He said: “I joined Nytil when I was 18 years, and I am currently 77 years old. When the government pays my terminal benefits, I want to construct a house because I am currently renting.’’ Mr Francis Ssenabulya Walugembe, said its unfortunate that some workers have died before receiving their money.