Struggling government broadcaster, Kenya Broadcasting Corporation (KBC) is on the spot over Sh2.7 billion that employees claim was deducted from their salaries but failed to be remitted to their retirement benefits scheme.
The pension has not seen any deposits for almost a decade and KBC Staff Retirement Benefits Scheme members now fear they will retire into poverty.
The broadcaster has now been taken to the Employment Court in Nairobi by trustees of the fund who say the deficit stands at Sh2.7 billion and continues to rise.
according to court documents, at least 70pc of KBC employees are aged over 48 years and are living in fear of retirement given that they will neither receive pension lump sum nor be eligible for pension income because of the financial damage directly caused by the State broadcaster.
“The actions of KBC have put the scheme in great financial jeopardy. Former employees who worked hoping they would receive payment to sustain them in retirement may be rendered destitute,” fund trustees state.
The broadcaster has said it’s unable to pay the sum all at once and if compelled it will be crippled further saying that even retired KBC staff are not receiving their pension.
In affidavit signed by a Jeremiah Marakia, KBC says should an order requiring it to start remitting the monthly deductions from this month be followed, it will also be unable to pay salaries to the current staff and would effectively jeopardise the livelihoods of all its staff.
Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]