Broke Kenya Broadcasting Corporation (KBC) is now unable to meet its financial obligations, including statutory deductions.
In the latest revelations, it has emerged that the state broadcaster has failed to remit Ksh984.3 million in employee retirement benefits.
This is according to a report filed by Auditor General Nancy Gathungu for the year ended June 2020, which revealed that the broadcaster in knee-deep into financial crisis and is struggling to stay afloat.
“Management attributed the delay to remit the deduction to its inability to settle its obligations as and when they fall due,” reads the report.
“The corporation is exposed to the risk of incurring penalties and interest with the continued delay in remittance of the deductions.”
KBC has also been unable to honour other statutory deductions amounting to Ksh464.6 million, cooperative liabilities of Ksh28.3 million and Kenya Revenue Authority (KRA) dues of Ksh712.3 million.
“The statement of financial position reflects trade and other payables balance of Ksh2.6 billion…Included in the balances are statutory and other deductions of Ksh2.2 billion,” said Ms Gathungu.
In 2019, it emerged that KBC had not cleared Ksh982 million in salaries and pensions owed to staff and retirees.
“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,” said Communication Workers Union (Cowu) General-Secretary Benson Okwaro.
KBC joins the Postal Corporation of Kenya (PCK), which was recently flagged for failing to remit employee and taxman dues amounting to Ksh1.8 billion.