Pyrethrum pensioners ask RBA to wind up troubled scheme
The Pyrethrum Board of Kenya Staff Superannuation Scheme members attend a meeting in Nakuru on July 31, 2017.
The Pyrethrum Board of Kenya Staff Superannuation Scheme members have urged the Retirement Benefits Authority (RBA) to speed up the process of winding up the scheme.
The cash strapped scheme owes more than 300 pensioners at least Sh2 billion in unpaid dues that have accumulated for nearly 10 years.
The scheme is sponsored by Pyrethrum Processing Company of Kenya which is facing serious cash crisis due to underfunding by the exchequer.
The scheme, in a letter written to RBA by their spokesperson Haron Tinga, said a petition they had launched in 2012 was determined in their favour in 2016 by the court but no action has been taken four years since the ruling was made.
“The court ordered the scheme to be wound up and the sponsor's assets liquidated to generate funds to pay the pensioners," said Mr Tinga.
Interestingly, the government set the process of liquidating the scheme in 2017 by appointing an official at the Attorney General's office to execute the court order.
This order was never contested by the sponsor whose assets spread out in the 18 pyrethrum growing counties in Kenya are valued at more than Sh7 billion.
However, four years since the official liquidator was appointed, no action has been forthcoming from the AG's office as pensioners continue to suffer.
At least 40 pensioners have died so far while many others are sick and are unable to pay their medical bills.
“We want RBA to follow up this matter to its final conclusion because the rate at which pensioners are dying is worrying and we are wondering whether RBA is performing its watchdog duties as it is supposed to do,” lamented Mr Tinga.
“We are tired of empty promises from both the sponsor and the liquidator, the time to act is now,” said Mr Tinga.
The official said it was hurting that RBA has abdicated its roles of protecting the interests of poor pensioners who toiled during their youthful years to save for a better retirement.
“We want to enjoy our pension just like other pensioners, we urge the RBA to move with speed and push for the conclusion of the liquidation process.
