Parliament intervenes in KBC pensioners’ dispute over unremitted funds and legal fee row

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Parliament intervenes in KBC pensioners’ dispute over unremitted funds and legal fee row

The National Assembly’s Departmental Committee on Communication, Information and Innovation (CII), chaired by Hon. John Kiarie, has thrown its weight behind distressed pensioners of the Kenya Broadcasting Corporation (KBC) following a long-running dispute involving unremitted pension contributions and a controversial legal fee claim.

During a session held at Parliament Buildings, the Committee met with petitioners from the KBC Staff Retirement Benefits Scheme to examine concerns around unpaid deductions amounting to Ksh.3.27 billion, a pending court-led liquidation process, and a Ksh.1.4 billion fee demanded by an advocate.

Mr. Martin Nyongesa, Chairperson of the KBC Pension Scheme, informed the Committee that by early 2018, KBC had failed to remit Ksh.750 million in staff deductions, a figure that has now ballooned to over Ksh.3 billion. 

The Retirement Benefits Authority (RBA) responded by threatening to liquidate the scheme, leading to a complex legal battle scheduled to be mentioned before the High Court on September 25, 2025.

Adding to the pensioners’ woes is a dispute with advocate Morara Omoke, who claims to have recovered Ksh.18 billion for the scheme and is demanding Ksh.1.4 billion in legal fees, far above the Ksh.480,000 initially agreed. 

Mr. Nyongesa termed the advocate’s engagement irregular, with no board resolution backing the procurement. “The former chair was misadvised. KBC itself isn’t even worth Ksh.18 billion. We’re now working to liquidate two parcels of land to address the deficit,” he said.

Committee members expressed unanimous concern over the alleged exploitation of pensioners and the suspicious legal arrangement. Hon. Mark Nyamita emphasized the Committee’s support, stating, “These retirees served the nation diligently. They deserve justice, not betrayal.”

Hon. Erastus Kivasu questioned the legitimacy of the legal fee claim, asking, “Where is the Ksh.18 billion that was allegedly recovered? How was this figure arrived at, and who verified it?”

Hon. Shakeel Shabbir cited the Donde Act, asserting that interest cannot exceed the principal, and termed the computation “grossly inflated.” Hon. Alfah Miruka added, “This is the time to rectify the mess. Pensioners cannot continue to suffer while individuals manipulate the system.”

The human cost of the crisis was brought into sharp focus with the story of Mr. Peter Kimeu, a pensioner who died while queuing at a hospital after failing to access treatment due to delayed pension payments. 

“Even if we remit the funds now, the pain these families have endured cannot be undone,” noted Hon. Kiarie.

The Committee advised the scheme’s trustees to file a formal complaint with the Advocates Complaints Commission and urged KBC to fast-track the transfer of assets to settle the pension arrears. 

It also called for swift intervention by the EACC and the Judiciary to investigate any potential mismanagement.

“All retirees must live with dignity,” emphasized Hon. Joyce Bensouda. “This case is a litmus test for how we treat those who built this country.” Hon. Kiarie added, “It reveals systemic gaps in pension administration, gaps we must now close.”

The petition remains under active consideration, with the Committee pledging to engage relevant ministries, RBA, and KBC to ensure the pensioners’ rights are protected and justice is delivered.

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