The Kenya Broadcasting Corporation (KBC) has been ordered to remit to its employees’ retirement scheme more than Sh10 billion it has been holding in arrears.
The amount could, however, rise to Sh12 billion following the decision by Justice Maureen Onyango that the national broadcaster also pays three per cent compound interest per month from the date the suit was filed in 2018.
Justice Onyango ruled that it was wrong for KBC to deduct pension funds from the employees’ salaries but fail to remit the dues to the KBC Staff Retirement Benefits Scheme.
“The continued failure by KBC to remit the deductions made from its employees’ salaries and other deductions due to the retirement scheme greatly prejudice the workers who will not be able to receive their pension,” she said.
Justice Onyango noted that although the national broadcaster was facing financial challenges, KBC had a greed to progressively settle the payments in an earlier settlement signed in court.
Although the management claimed they had remitted Sh66 million, no statement of account was filed in court to verify.
“In light of their admission of its indebtedness and the evidence placed before court, I find that the employer owes the claimants in the manner alleged. Having made the deduction from its workers, it had a duty to remit the same to the retirement scheme within 15 days each month,” said the court.
The scheme’s Board of Trustees went to court claiming that the employer had failed to remit deductions as well as property rent collections from June 2011.
The board submitted that as at October 31, last year, the scheme’s claim against the national broadcaster amounted to Sh10 billion.
The tabulated amounts included unremitted pension contributions totaling Sh931 million, Sh105 million pension contributions, Sh4.5 million CBA pension arrears and Sh6.2 million for property rent collections.
Others are the actual deficit of Sh2.7 billion as at June 30, 2018, and 3 per cent compound interest on unremitted contributions for 136 months from July 1, 2010, to October 31, last year, which totals Sh5.7 billion.
Justice Onyango directed KBC and the pensions scheme to file the computation of the amounts owed as at the date of judgment on April 27, including daily accruals of interest, and report back to court within 30 days.