Parliament has put the Kenya Broadcasting Corporation (KBC) on the spot over its failure to remit over Sh3 billion in staff deductions owed to the KBC Staff Retirement Benefits Scheme.
The National Assembly Committee on Communication, Information and Innovation, chaired by Dagoretti South MP John Kiarie, heard that by early 2018, KBC had failed to remit Sh750 million in staff deductions—a figure that has now ballooned to Sh3.27 billion.
The Chairperson of the KBC Pension Scheme, Martin Nyongesa, informed the committee that the Retirement Benefits Authority (RBA) had responded by threatening to liquidate the scheme, leading to a complex legal battle in the High Court.
“The pensioners’ woes have been worsened by a dispute with Advocate Morara Omoke, who claims to have recovered Sh18 billion for the scheme and is now demanding Sh1.4 billion in legal fees—far above the Sh480,000 initially agreed upon,” said Nyongesa.
He termed the advocate’s engagement as irregular, noting there was no board resolution backing the procurement. Nyongesa added that the former chairperson had been misadvised, arguing that KBC itself is not even worth Sh18 billion. He said the scheme is now working to liquidate two parcels of land to help offset the deficit.
Kiarie expressed concern over the alleged exploitation of pensioners and the questionable legal arrangement, emphasizing the committee’s support:
“These retirees served the nation diligently. They deserve justice, not betrayal from those they trust.”
Mbooni MP Erastus Kivasu questioned the legitimacy of the legal fees claim, demanding to know where the alleged Sh18 billion recovered was and how the figure had been verified before pensioners were asked to foot the huge legal bill.
Kisumu Town East MP Shakeel Shabbir cited the Donde Act, asserting that interest cannot exceed the principal, and described the computation as grossly inflated, seemingly aimed at siphoning money from already struggling pensioners.
Bomachoge Chache MP Alfah Miruka said this was the right time to correct the anomaly:
“Pensioners cannot continue to suffer while individuals manipulate the system for personal gain. This should not be the case.”
Kiarie added that even if the funds were remitted now, the suffering endured by the affected families could not be undone. He referenced the tragic case of Peter Kimeu, a pensioner who died while queuing in a hospital after failing to access treatment due to delayed pension payments.
Homa Bay County MP Joyce Bensouda called for pensioners to be allowed to live with dignity and urged her fellow legislators to pursue the matter to its conclusion, stating that those who served the nation should not be left to wallow in poverty.
The MPs called for swift intervention by the Ethics and Anti-Corruption Commission (EACC) and the Judiciary to investigate possible mismanagement. They described the case as a litmus test of how the country treats its senior citizens and noted it exposes systemic gaps in pension administration—gaps that must now be closed.
The petition remains under active consideration, with MPs pledging to engage relevant ministries, the RBA, and KBC to ensure pensioners’ rights are protected and justice is delivered.
“We are advising the scheme’s trustees to file a formal complaint with the Advocates Complaints Commission and are urging KBC to fast-track the transfer of assets to settle the pension arrears,” said Kiarie.
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