Kenya Broadcasting Corporation (KBC) says that it is at risk of shutting down, sending employees home over a court ruling issued in its Ksh10 billion pension scheme case.
Justice Maureen Onyango ordered the media house to remit the money owed to KBC Retirement Benefits Scheme, stating that the state broadcaster has been illegally deducting pension money from the employees’ salaries.
In its response, KBC cautioned that it may be forced to halt operations and also fail to pay the salaries of employees if forced to immediately pay the amount which can rise up to Ksh12 billion.
The Ksh2 billion extra was calculated as a three per cent compound interest per month on the money owed.
"I find that KBC having made the requisite deductions from its employees' salaries, 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," Justice Onyango of the Labour Relations Court ruled.
KBC was faulted by the scheme's Board of Trustees who argued that the broadcaster could not explain where the funds deducted from employees’ paychecks were channelled to.
The employees further lamented that the national broadcaster as well as deducted property rent collections from June 2011.
“KBC’s continued failure 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,” Justice Onyango added.
She directed both parties to submit responses within 30 days and a detailed breakdown of the money comprising interest accrued.
KBC rebranded in June 2021. The government-owned media house launched a state-of-the-art studio and unveiled high-wattage anchors including veterans, the late Badi Muhsin, Tom Mboya, Catherine Kasavuli and Pauline Sheghu.
Other top anchors who joined the media house included Shiksha Arora, Ahmed Juma Bhalo, Nancy Onyancha, Caren Kibet and Harith Salim.
