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GDC asks court to dismiss workers petition in benefits row

Company says allowing petition would give workers double benefits after elevation to management

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by Peter Obuya

News26 September 2025 - 11:30
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In Summary


  • GDC argues that it is standard human resource practice worldwide that management staff are not entitled to overtime pay.
  • The company says it had instead introduced a call-out allowance for managers who work beyond normal hours.
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State parastatal Geothermal Development Company has asked a court to dismiss a petition filed by 62 of its employees, arguing that the workers are pushing a selfish agenda designed to keep union benefits while also enjoying management perks.

The company said the employees, who were redesignated from Grade 8 (unionisable staff) to Grade 7 (management), now want to cling to allowances reserved for union members under the Collective Bargaining Agreement, such as overtime, while at the same time, they are still pocketing higher salaries, house allowance, and commuter benefits given to employees in the management team.

In affidavits filed before the Employment and Labour Relations Court in Nairobi, GDC argues that it is standard human resource practice worldwide that management staff are not entitled to overtime pay.

The company says it had instead introduced a call-out allowance for managers who work beyond normal hours.

The state-owned firm has also defended its medical scheme, explaining that while unionisable employees can cover a spouse and six children, management staff are entitled to fewer dependents: a spouse and four children, but with superior benefits for each beneficiary.

On hardship allowance, the company argues it is bound by government directives, including those from the Salaries and Remuneration Commission, which has regularised the allowance at Sh12,300.

Through lawyer Cecil Miller, the company further there has been no gazette notice or SRC circular authorizing an increase in house allowance for workers in Nakuru from Sh35,000 to the Sh40,000 as is payable to Nairobi employees, despite Nakuru’s elevation to city status.

The company added that the High Court has already suspended new management guidelines issued in May 2024, making some of the employees’ prayers legally untenable.

“The petitioners want to retain union benefits while enjoying management privileges and at the same time block new graduates with similar qualifications from earning equally,” GDC says in its affidavits.

The company warned that taxpayers risk losing money that cannot be recovered if the petition succeeds.

The workers, led by lawyers Evans Kimaiyo, had earlier sued the company, accusing it of unfair labour practices and discrimination.

They argue that their redesignation to management stripped them of allowances they previously enjoyed under union terms, leaving them disadvantaged compared to their peers in similar state corporations.

They also faulted the company’s medical scheme, claiming that management cover is inferior to that of unionisable staff, and insisted that the changes breached their constitutional rights to equality, fair labour practices, and fair remuneration.

The petitioners want the court to either reinstate them to union terms or compel GDC to harmonise their pay and allowances with those enjoyed by other public sector workers in comparable grades.

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