KBC fears closure over Sh10bn pension arrears


The Kenya Broadcasting Corporation offices in Nairobi. PHOTO | WILLIAM OWERI | NMG

Financial woes facing the State broadcaster, Kenya Broadcasting Corporation (KBC), have deepened after a judge allowed its employees to recover nearly Sh10 billion in unremitted pensions and lost income for over 11 years.

Payment of the sums at once could see the broadcaster shut, as it informed the court that it may "halt its operations" because "it shall be unable to meet its financial obligations including payment of salaries".

Though it admitted its indebtedness to the retirement scheme, the company never explained the whereabouts of the funds deducted monthly from its employees’ paychecks, which was the basis of the court dispute.

In the judgment rendered by Justice Maureen Onyango, 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.

"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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