A Kenyan senator has requested a parliamentary probe into the treatment of over 3,000 workers at a Sri Lankan apparel manufacturer's Nairobi facility, citing delayed wages and unpaid benefits as the parent company faces financial collapse.
Nairobi Senator Edwin Sifuna has initiated calls for a formal Senate investigation into the deteriorating conditions faced by workers at Hela Intimates EPZ Limited in Kenya, citing widespread grievances affecting more than 3,000 employees. The move comes as the parent company, Sri Lanka-based Hela Apparel Holdings PLC, navigates serious financial challenges and considers winding down operations.
Sifuna raised multiple concerns before the Kenyan Senate, highlighting salary delays extending over several months and the company's alleged failure to remit mandatory deductions to national social security systems and employee savings schemes. Workers also reportedly face uncertainty regarding unpaid severance and terminal benefits, while the company carries substantial outstanding debts to suppliers. The senator requested that the Standing Committee on Labour and Social Welfare examine the current status of these arrears and determine what protective measures exist for workers and creditors when companies cease operations without settling obligations.
In a potentially offsetting development, Sri Lanka's Board of Investment stated that 3,674 employees previously associated with Hela Clothing and Foundation Garments had been transferred to Emerald Clothing as part of a restructuring completed prior to the recent financial deterioration at Hela Apparel Holdings. However, it remains unclear whether the workers affected by the Kenyan senator's concerns were included in this transfer arrangement or how many positions remain unfilled.
