Struggling Kenya Broadcasting Corporation (KBC) has failed to pay Sh984.3 million in staff retirement benefits.
According to Auditor General Nancy Gathungu’s report for the fiscal year ended June 2020, the State broadcaster has failed to settle its dues.
“Management attributed the delay to remit the deduction to its inability to settle its obligations as and when they fall due,” the report reads in part.
Gathungu adds, “The corporation is exposed to the risk of incurring penalties and interest with the continued delay in remittance of the deductions.”
KBC is required to remit statutory, loan, and members’ deductions to Saccos and banks.
KBC had also failed to pay additional unspecified statutory deductions totaling Sh464.6 million, cooperative liabilities totaling Sh28.3 million, and Kenya Revenue Authority (KRA) dues totaling Sh712.3 million, the report shows.
“The statement of financial position reflects trade and other payables balance of Sh2.6 billion…Included in the balances are statutory and other deductions of Sh2.2 billion,” said Gathungu.
Ex-KBC employees have recently petitioned the broadcaster for payment of their unpaid benefits.
In 2019, unionized employees, for example, issued a notice to strike, claiming that salary and pensions were not being paid to employees and retirees.
Due to the broadcaster’s reluctance to deliver the money, the Communication Workers Union (Cowu) put the broadcaster on notice as required by law.
Pensioners were the hardest hit, according to General-Secretary Benson Okwaro, who indicated at the time that KBC had been unable to pay them Sh982 million in dues from the previous year.
“Retirees have not been paid over the past year. Five saccos are owed about Sh50 million while various banks are demanding Sh10 million from the State broadcaster,” Okwaro said then.
KBC had neglected to pay mandatory deductions to the Kenya Revenue Authority, the National Social Security Fund, co-operative unions, and healthcare and insurance expenditures, the union revealed.