Kenya Broadcasting Corporation’s (KBC) financial troubles has worsened after a judge permitted its employees to recover roughly Sh10 billion in unpaid pensions and lost revenue over an 11-year period.
The broadcaster has notified the court that it may “stop its activities” if the monies are not paid immediately because “it shall be unable to meet its financial commitments, including payment of salaries”.
Despite admitting its debt to the retirement plan, the corporation never explained where the monies deducted monthly from its employees’ paychecks went, which was the source of the legal issue.
The Labour Relations Court criticised the cash-strapped broadcaster for failing to transfer the money to the KBC Staff Retirement Benefits Scheme as required by the Retirement Benefits Act, according to Justice Maureen Onyango’s ruling.
“I find that KBC having made the requisite deductions from its employees’ salaries, it 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,” said Justice Onyango.