MPs question Sh1.4 billion fee as KBC pension scheme faces collapse
MPs also heard the tragic story of Peter Kimeu, a retiree who died while queuing at a hospital after failing to get treatment due to delays in receiving his pension.
Parliament has taken up the case of Kenya Broadcasting Corporation (KBC) pensioners facing financial distress due to more than Sh3 billion in unremitted staff deductions and a fresh controversy over a Sh.1.4 billion legal fee claim by a lawyer.
The National Assembly’s Committee on Communication, Information and Innovation on Tuesday met representatives of the KBC Staff Retirement Benefits Scheme and promised action to protect the affected retirees and recover the funds.
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Martin Nyongesa, the chairperson of the pension scheme, told the committee that by early 2018, KBC had failed to remit about Sh750 million in deductions from employees, a figure that has now grown to over Sh3.27 billion. He said the Retirement Benefits Authority (RBA) had moved to dissolve the scheme, with a court mention scheduled for September 25.
Nyongesa also disclosed a dispute with lawyer Morara Omoke, who claims to have helped the scheme recover Sh18 billion and is now demanding Sh1.4 billion in legal fees, far above the Sh480,000 previously agreed upon.
He said the engagement was not authorised by the board and that KBC’s total value does not even come close to the amount the lawyer claims to have recovered.
“The former chairperson was misadvised. KBC itself isn’t even worth Sh18 billion. We’re now working to liquidate two parcels of land to address the deficit,” he said.
The revelations sparked outrage among members of the committee who condemned what they called the exploitation of retirees and irregular legal dealings.
“These retirees served the nation diligently. They deserve justice, not betrayal,” Uriri MP Mark Nyamita said.
Mbooni MP Erastus Kivasu questioned the legal fee, asking, “Where is the Sh18 billion that was allegedly recovered? How was this figure arrived at, and who verified it?”
Kisumu East MP Shakeel Shabbir, citing the Donde Act, said the legal claim appeared to be “grossly inflated” as interest charged far exceeded the principal.
“This is the time to rectify the mess. Pensioners cannot continue to suffer while individuals manipulate the system,” Bomachoge Chache MP Alfah Miruka added.
MPs also heard the tragic story of Peter Kimeu, a retiree who died while queuing at a hospital after failing to get treatment due to delays in receiving his pension.
“Even if we remit the funds now, the pain these families have endured cannot be undone,” committee chair John Kiarie said.
The committee advised the scheme’s trustees to lodge a formal complaint with the Advocates Complaints Commission and asked KBC to speed up asset transfers to help cover the unpaid dues.
It also called on the Ethics and Anti-Corruption Commission and the Judiciary to investigate potential wrongdoing.
“All retirees must live with dignity,” said Homa Bay County MP Joyce Bensouda. “This case is a litmus test for how we treat those who built this country. It reveals systemic gaps in pension administration, gaps we must now close.”
The matter remains under active review, with the committee vowing to engage KBC, RBA, and other state institutions to ensure accountability and protection of pensioners’ rights.
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