Written By Mary Mumbua 📝
Kenya Broadcasting Corporation’s (KBC) financial woes have worsened after a judge granted its employees nearly Sh10 billion in unpaid pensions and lost income for over 11 years.
Payment of the sums all at once could result in the broadcaster’s closure, as it informed the court that it may “halt its operations” if it is unable to meet its financial obligations, including salary payments.
Despite admitting its debt to the retirement scheme, the company never explained where the funds deducted monthly from its employees’ paychecks, which was the basis of the court dispute, were located.
The Labour Relations Court faulted the cash-strapped broadcaster for failing to remit the money to the KBC Staff Retirement Benefits Scheme as required by the Retirement Benefits Act, according to Justice Maureen Onyango’s decision.
“I find that KBC having made the requisite deductions from its employees’ salaries, it had a duty to remit such funds to the Scheme within 15 days. KBC has continuously failed, ignored or refused to make the requisite remittances despite the agreements with the Retirement Benefits Authority as well as the court (earlier) ruling delivered on May 15, 2020,” said Justice Onyango.
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