RBA hold talks over planned liquidation of Sh1.4b pyrethrum pension scheme

NAIROBI, KENYA: The Retirement Benefits Authority has kicked off dialogue on the liquidation and payment process for pensioners under the Pyrethrum Board of Kenya Staff Superannuation Scheme.

This follows a court ruling in December 2016 that ordered liquidation of 700 member pension scheme which the court found to be unable to pay its debts amounting to Sh1.4 Billion.

Hundreds of pensioners on Thursday attended a meeting with various parties inclusive of representatives from the office of the Attorney General (AG) who is the liquidator, Retirement Benefits Authority (RBA) and the Agriculture and Food Authority (AFA).

Speaking to the press after the meeting, the pensioners’ secretary Harun Tinga said that the meeting entailed discussions on the manner in which the money owed to the pensioners will be paid.

“We are glad that this first meeting has materialised. Today we dwelt on how the pensioners want the money disbursed to them even as we wait for the government to release it,” said Tinga.

He added that the officials who didn’t speak to the press revealed to them that negotiations between various government organs have also kicked off on the source of money which the government will use in the payoff.

The pensioners called on the RBA to ensure that they get their dues in a one payoff manner to ensure they do something tangible with their lifetime savings.

“It will be unfair if the pensioners are paid in bits what they saved when they were young. We are urging the RBA to ensure we all get the money once and allow the pensioners live a more decent life they planned for,” said Tinga.

He pointed out that monthly payments will deny the pensioners the real value of their savings citing that majority of them are living in abject poverty.

“We have widows and widowers who are very old and this is money they saved at their tender age. Some have gotten into heavy debts hoping to settle them with these funds. Monthly payments will do very little to transform their lives,” he said.

The members called on the government to ensure the payment is done in the shortest time possible citing that a number of them have died while waiting for their dues.

Only 170 members of the scheme are still in active employment and have expressed their support of the court ruling with a plan to join other pension schemes of their choice.