The Kenya Broadcasting Corporation (KBC) is embroiled in a legal battle with its employees over Ksh2.7billion deducted from salaries but yet to be remitted to their retirement benefits scheme.
In a report by Daily Nation, the employees have moved to court to sue the National broadcaster at the employment court over the accumulated amount which continues to pile up with time.
One of the claimants in the court case stated they fear to retire without a penny due to the broadcaster’s failure to remit the deductions from their salaries for almost a decade.
“At least 70 percent 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,” says Ms. Jane Kiambi, in court documents.
Non-remittance of the amount by KBC risks the scheme being de-registered by the Retirement Benefits Authority(RBA).
“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,” reads a statement from the trustees.
However, an affidavit sworn by KBC Finance Manager, Jerimiah Marakia, indicates the broadcaster it is unable to pay the sum at one go.
Marakia further argues that KBC would not be able to pay salaries of its current staff if forced to pay the amount.