Court orders Rotich to resolve Sh4bn pension row in seven days

What you need to know:

  • The former employees lodged their claim before the Retirement Benefits Authority (RBA).
  • Former Telkom Kenya workers are seeking more than Sh1.2 billion, Teleposta pensioners over Sh1 billion while KCB retirees are demanding more than Sh600 million.

A Cabinet Secretary has seven days to resolve a Sh4.36 billion claim against him.

High Court judge Mumbi Ngugi ordered National Treasury Cabinet Secretary Henry Rotich to appoint a tribunal to determine the multi-billion-shilling claims by 2,222 retirees demanding pension arrears.

“Why do public officers wait for the courts to compel them to discharge their duties?” asked Lady Justice Ngugi. She directed the AG to advise Mr Rotich what was expected of him.

“It does not sound good for this court to direct a minister to do what is expected of him.”

The former employees lodged their claim before the Retirement Benefits Authority (RBA).

The judge directed lawyer Titus Koceyo, for the pensioners from Kenya Commercial Bank, Standard Chartered Bank, Cooperative Bank and Telkom Kenya, to give Mr Rotich and RBA chief executive Edward Odundo time to act.

Other pensioners are from Barclays Bank, Postbank, Postal Corporation of Kenya, National Bank of Kenya, National Museums of Kenya and the Kenya Airports Authority.

Former Telkom Kenya workers are seeking more than Sh1.2 billion, Teleposta pensioners over Sh1 billion while KCB retirees are demanding more than Sh600 million.

National Bank retirees are seeking over Sh300 million while Cooperative Bank is required to pay Sh260 million.

“The minister of Finance’s failure to appoint and gazette members of the tribunal amounts to abuse of office and he is therefore unfit to hold public office as he facilitates breaches of constitutional rights of the pensioners,” Mr Koceyo said.

The RBA dispute resolution tribunal’s term expired last September and the minister has not named a new team.

Justice Ngugi ordered that the case be mentioned on March 3.