CAO Cases

Arne Hoel, The World Bank

Sub-Saharan Africa

Kenya / Bidco Bev. & Det.-01/Thika

Complainant
A group of Bidco current and former workers
Date Filed
June 10, 2016
Concerns
Labor conditions, terms of employment, occupational health and safety, freedom of association, rights of casual workers, employee grievance mechanism
Case Status
Open - Compliance
 

Synopsis

Complaint

IFC has an active project with Bidco Africa, a Kenyan private limited liability company that is one of East Africa’s leading manufacturers and distributors of fast moving consumer goods. IFC’s loan of up to US $36.5 million will 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.

 

The complaint was filed with CAO on behalf of a group of former and current workers of the Thika plant. The complaint raises concerns related to labor and working conditions, including terms of employment, occupational health and safety, and freedom of association. 

 

CAO Action

CAO found the complaint eligible for assessment in June 2016, and conducted a field visit to discuss options for addressing the complaint with the relevant parties. Subsequent to its field visit, CAO was unable to receive a clear indication from the complainants about how they wish to move forward. As such, CAO was unable to conclude the assessment process. In accordance with CAO’s Operational Guidelines, the complaint was referred to CAO's Compliance function for appraisal.

 

The purpose of CAO’s compliance appraisal is to determine whether or not an investigation of IFC's role in the project is merited in order to provide assurance to the World Bank Group President and the public of IFC’s compliance with relevant social and environmental policies and procedures.

 

This complaint raises concerns that potentially affect a large number of the client’s employees. While the complainants acknowledge improvements in some areas of the client’s labor practices, they raise ongoing concerns regarding a range of issues that are governed by IFC Performance Standard 2. CAO has decided to conduct a compliance investigation of IFC’s E&S performance in relation to this project, and the Terms of Reference for the compliance investigation were published on April 4, 2017.  CAO conducted a site visit to Kenya in May, 2017.

 

All documents relating to this case are available under "View Documents" below.

 

Status

The compliance investigation is  underway.

 

Status as of  November 9, 2017

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: Closed

Compliance

  • Under Appraisal: Completed
  • Under Audit: In Process