18th September 2023.
JINJA, Uganda – In a long-awaited legal victory for 3,425 former workers of the now-defunct Nyanza Textile Industries (Nytil), a court has ordered the Ugandan government to pay terminal benefits amounting to UGX 6.2 billion ($1.7 million). The workers, who had tirelessly sought compensation for decades, can finally breathe a sigh of relief.
Nytil, which was originally established in 1954 by the colonial government as a parastatal company, changed hands over the years until it was sold to Southern Range Nyanza Limited in 1995, where it continues to operate to this day.
This legal battle dates back to 1995, when the workers first filed for compensation, only to have their claims dismissed by a Jinja Court in 2009. However, their unwavering determination led them to appeal in 2019, resulting in this landmark ruling.
The breakthrough came as a result of the government’s failure to instruct the Auditor General’s office to ascertain the workers’ claims, ultimately compelling the court to intervene.
Justice Faridah Shamilah Bukirwa Ntambi, who presided over the case, delivered the judgment last Friday, asserting that the former workers are entitled to their long-overdue terminal benefits. Mr. Mallon Dobayo, one of the claimants, was granted permission by the court to pursue his claim independently, slightly reducing the total number of verified claimants.
In addition to the terminal benefits, Justice Bukirwa ordered the government to pay each of the 3,425 ex-workers UGX 3 million as general damages. She emphasized that “the workers being the successful parties are entitled to the costs of the suit, general damages to a tune of UGX 3 million for each, interest on general damages of 10 percent per annum from the date of judgment until payment in full.”
The court further ordered the government to pay 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.
This judgment marks a significant milestone in the pursuit of justice for the former Nytil workers, finally providing them with hope that they will get the compensation after years of waiting and uncertainty.
