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Crisis as KBC faces closure

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By Judith Gicobi

The Kenya Broadcasting Corporation (KBC) says it is on the verge of closing down and sending employees home as a result of a court ruling in its Ksh10 billion pension scheme case.

Justice Maureen Onyango issed an order that the media house to pay the money owed to the KBC Retirement Benefits Scheme, claiming that the state broadcaster had been deducting pension money from employees’ salaries without their consent.

KBC said in its response that if it is compelled to urgently pay the amount, which might reach Ksh12 billion, it may be forced to suspend operations and fail to pay employee salaries.

The extra Ksh2 billion was computed as a monthly compound interest rate of 3% on the money due.

“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.

The scheme’s Board of Trustees reprimanded KBC, claiming that the broadcaster could not clarify how the money withdrawn from employees’ paychecks was spent.

In June 2021, KBC relaunched. The government-owned media business debuted a cutting-edge studio and featured high-wattage presenters such as the Catherine Kasavuli, late Badi Muhsin, Pauline Sheghu , and Tom Mboya among others.

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