Over 4,000 retirees from the Postal Corporation of Kenya are urging the government to settle their outstanding retirement benefits, which have remained unpaid for over a decade, totaling more than Ksh500 million.
Former employees have expressed concern over the deductions made from the pension funds of current employees since 2015. These deductions, they claim, were not appropriately remitted to the Pension Fund schemes as required. This situation has resulted in both financial losses and the delay in their rightful compensation.
Moses Odingo, the main representative of the retirees, argues that an incorrect formula was used to calculate the pension benefits for all employees who left the service after 1999, leading to significant financial disparities as reported by People Daily.
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Odingo insists that the Retirement Benefits Authority (RBA) should revert to the previous formula for determining the accurate benefits owed to the retired workers. The retirees are growing increasingly concerned about the extended delay in addressing their concerns, which date back to 2010. They fear that, given the ongoing delays, they may not live to enjoy the retirement benefits they earned through their years of service.
“There has been a massive delay in solving our issues since 2010. We fear we may lose our lives before enjoying the benefits of what we worked for. A wrong formula was used and our pursuit ended in court,” Mr. Odingo said.
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The case of the Postal Corporation retirees was brought before the court through a Judicial Review application, and High Court Judge Dennis Odunga ruled in favor of the retirees. He ordered the RBA to expedite the process of finalizing the compensation formula for the former employees.
