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MPs back KBC pensioners in Sh3bn row over lost funds, legal fee dispute

MPs back KBC pensioners in Sh3bn row over lost funds, legal fee dispute
Martin Nyongesa, chairperson of the Kenya Broadcasting Corporation (KBC) pension scheme before the National Assembly’s Committee on Communication, Information and Innovation at Bunge Towers, Nairobi on July 29, 2025. PHOTO/NATIONAL ASSEMBLY
In Summary

Martin Nyongesa, who chairs the scheme, told MPs that by 2018 KBC had failed to remit Sh750 million in staff deductions, a figure that has now shot to Sh3.27 billion.

A parliamentary committee has stepped in to address a long-standing crisis affecting pensioners of the Kenya Broadcasting Corporation, involving over Sh3 billion in unremitted staff deductions and a disputed Sh1.4 billion legal fee demand by an advocate.

The National Assembly’s Committee on Communication, Information and Innovation, led by John Kiarie, on Tuesday met petitioners from the KBC Staff Retirement Benefits Scheme who raised concerns over delayed pension payments, looming liquidation, and a controversial legal arrangement that has further complicated efforts to recover the lost funds.

Martin Nyongesa, who chairs the scheme, told MPs that by 2018 KBC had failed to remit Sh750 million in staff deductions, a figure that has now shot to Sh3.27 billion.

The Retirement Benefits Authority has since moved to initiate liquidation proceedings, with the matter due for mention at the High Court on September 25.

Nyongesa further said the situation has been worsened by a lawyer, Morara Omoke, who is demanding Sh1.4 billion as legal fees for allegedly helping the scheme recover Sh18 billion. He dismissed the demand as irregular and baseless, saying there was no board resolution backing Omoke’s engagement.

“The former chairperson 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,” Nyongesa said.

Members of the committee strongly criticised the alleged exploitation of the pensioners and called for investigations into the deal. Mark Nyamita said the matter was unacceptable, noting, “These retirees served the nation diligently. They deserve justice, not betrayal.”

Erastus Kivasu questioned the credibility of the legal fee claim, saying, “Where is the SH18 billion that was allegedly recovered? How was this figure arrived at, and who verified it?”

Shakeel Shabbir cited the Donde Act and said the interest in the case far exceeded the principal, calling the computation “grossly inflated.”

Alfah Miruka urged authorities to act swiftly, stating, “This is the time to rectify the mess. Pensioners cannot continue to suffer while individuals manipulate the system.”

The committee also heard about the human toll of the crisis, including the death of Peter Kimeu, a pensioner who collapsed while queuing at a hospital after being denied treatment due to delayed payments. “Even if we remit the funds now, the pain these families have endured cannot be undone,” Kiarie said.

MPs advised the scheme’s trustees to lodge a complaint with the Advocates Complaints Commission and told KBC to fast-track asset transfers to help settle the arrears. They also called on the EACC and the Judiciary to probe any signs of misconduct.

“All retirees must live with dignity,” said Joyce Bensouda. “This case is a litmus test for how we treat those who built this country.”

Kiarie added, “It reveals systemic gaps in pension administration, gaps we must now close.”

The petition remains under review, with the committee promising to engage KBC, the Retirement Benefits Authority, and other state actors to secure the pensioners’ rights and ensure accountability.

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