CAO Cases

Arne Hoel, The World Bank

Sub-Saharan Africa

Kenya / Bidco Bev. & Det.-04/Thika

Complainant
A group of Bidco’s former workers
Date Filed
May 23, 2017
Concerns
Unfair dismissal, payment of employment benefits, rights of casual workers
Case Status
Open - Compliance
 

Synopsis

Complaint

IFC has an active project with Bidco Africa, a Kenyan private limited liability company, which is one of East Africa’s leading manufacturers and distributors of fast moving consumer goods. IFC’s investment consists of a loan up to US$36.5 million to support the US$46 million expansion of Bidco Africa. Specifically, the proceeds of the loan will be used for the construction and operation of new facilities to expand Bidco’s production capacity in Kenya.

 

In May 2017, a former employee of the Bidco Oil Refineries Limited lodged a complaint with CAO, claiming to represent more than 480 other former employees (the complainants). The complainants allege that their contracts were unfairly terminated in response to their demand to receive overdue benefits, including leave allowance accrued during their employment. The workers also claimed working under poor conditions while employed at the client’s facilities. They also claimed the client prevented them from joining a trade union. 


CAO Action 

CAO found the complaint eligible for further assessment in July 2017. During CAO's assessment, the company expressed willingness to engage the complainants in a dialogue process facilitated by CAO. However, the complainants could not agree among themselves how to engage the CAO. Therefore, in accordance with CAO's Operational Guidelines, the complaint was referred to CAO's compliance function.

 

Status 

Considering the similarity of the issues and the fact that they are currently under investigation, CAO has decided to merge this complaint with Bidco Bev. & Det.-01/Thika, which is an ongoing compliance investigation.

All documents relating to this case are available under "View Documents" below. Information on the Bidco Bev. & Det.-01/Thika case is available at http://www.cao-ombudsman.org/cases/case_detail.aspx?id=248.

 

Status as of March 15, 2018. 

Project information

Institution
IFC
Project Name & Number
Bidco Bev & Det 33385
Department
Global Manufacturing & Services
Company
BIDCO AFRICA LIMITED
Sector
F-Al - Other food
Region
Sub-Saharan Africa
Country
Kenya
Environmental Category
B
Commitment
US$23 million A loan and up to $13.5 million B loa

Case Tracker

Ombudsman

  • Eligible: Completed
  • Assessment Period: Completed

Compliance

  • Under Appraisal: Completed
  • Under Audit: In Process