KBC at the risk of shutting down
The Kenya Broadcasting Corporation (KBC) has said it is in danger of shutting down, repatriating workers due to a court decision in its Ksh 10 billion pension payment case.
Judge Maureen Onyango ordered the press to pay the KBC Retirement Benefit Scheme, saying the state-run broadcaster had illegally deducted pension money from employees’ salaries.
In its response, KBC warned that it would be forced to suspend its operations and not pay staff salaries if it was forced to pay immediately an amount that could amount to Ksh 12 billion.
An additional Ksh 2 billion was calculated as interest of 3% per month on the amount owed.
“I have concluded that KBC after making the required deductions from the salaries of its employees, was responsible for reimbursing these funds to the Program within 15 days.
“KBC has continued to fail, neglect or refuse to make the required payments despite agreements with the Pension Benefits Authority as well as the (early) court decision issued on May 15, 2020,” said Judge Onyango of the Court of Human Rights. .
KBC was challenged by the then-board board claiming that the broadcaster could not explain where the money deducted from staff payments went.
Employees further complained that the national broadcaster had cut property tax collections since June 2011.
“KBC’s continued refusal to submit deductions from its employees’ salaries and other deductions from the pension scheme is detrimental to employees who will not be able to collect their pensions,” added Judge Onyango.
She ordered both parties to submit a response within 30 days with a detailed analysis of the amount including increased interest.