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Economy

RBA barred from taking over Mumias staff fund

Justice Lucy Njuguna. PHOTO | Paul waweru
Justice Lucy Njuguna. PHOTO | Paul waweru 

The High Court has suspended the Retirement Benefits Authority’s (RBA) decision to place Mumias Sugar Company’s staff provident fund under administration after the miller failed to remit Sh80 million for retirement benefits and group life cover.

Justice Lucy Njuguna allowed the miller and the Mumias Sugar Company Staff Provident Fund’s application seeking to stop the RBA from appointing Roberts Insurance Brokers as the interim administrator.

She said she was satisfied that Mumias Sugar and the staff provident fund had committed to clear the unremitted arrears.

“It’s only fair and just that the application herein be granted. The same is allowed.”

The company and the staff provident fund moved to court seeking interim orders suspending the RBA’s decision until an appeal filed with the Retired Benefits Appeals Tribunal is heard and determined.

The RBA placed the Mumias Provident Fund under administration on June 28, 2017 but Mumias filed an appeal at the Tribunal on July 10.

The sugar firm was at the time informed that the Tribunal was not fully constituted and could not sit to hear the application, prompting the petitioners to move to High Court.

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