NAIROBI, Kenya, Apr 1 – A parliamentary oversight committee has summoned Kenya Railways Corporation (KRC) Managing Director Philip Mainga to explain the 19-year delay in paying out Sh21.9 million owed to retired employees.
The National Assembly’s Public Accounts Committee (PAC) also directed Transport Principal Secretary (PS) Mohammed Daghar to appear before it, after revelations that 270 former employees have been awaiting their benefits since 2006.
A report by the Auditor General on the 2022/2023 financial year indicates that Sh21,950,404 remains unclaimed in the State Department of Transport’s account at the Central Bank of Kenya.
The report further notes that no comprehensive list of beneficiaries has been provided, and it remains unclear why the responsibility for these payments was transferred from Kenya Railways to the State Department.
“The State Department did not provide an explanation as to why the mandate of paying Kenya Railways retirees was shifted to them,” the report states.
During his appearance before PAC, Daghar faced tough questioning from committee members, who raised concerns over the prolonged delay and its impact on retirees many of whom have endured financial struggles, depression, and even death while waiting for their dues.
Funyula MP Wilberforce Oundo strongly criticized the State Department’s inaction, questioning why nothing had been done for nearly two decades.
“For all these years, you have done nothing not even a basic consultation with Kenya Railways about releasing the funds. Does it not disturb you that this matter has been ignored for so long?” he asked.
Samburu West MP Naisula Lesuuda challenged the excuse that some retirees could not be traced, questioning how an institution that had records of its employees for decades could now claim they were missing.
“These retirees were in your system for years, but when it’s time to pay them, you suddenly can’t find them?” she asked.
Rarieda MP Otiende Amollo demanded to know whether any public efforts had been made to notify the retirees that their money was available.
“How do you expect them to know they are being sought for payment? Have you advertised or made any announcements to reach them?” he asked.
Aldai MP Maryanne Keitany criticized the State Department’s failure to act for nearly 20 years, questioning why the money had been lying idle in an account instead of being distributed.
“What has this money been doing in the account all these years? Was it meant to accrue interest? And if so, will retirees receive payments with interest? These people worked hard for their money, yet they continue to suffer. Some have taken to the streets in protest, while others have died waiting,” she lamented.
Mathioya MP Edwin Mugo sought clarification on how retirees without bank accounts would be paid, urging the department to come up with a clear plan.
MP Keitany also refuted the claim that some beneficiaries could not be found, stating that Kenya Railways maintains a complete record of retirees for pension processing.
“Having worked at Kenya Railways, I can confirm that they have a full list of retirees because they process pensions every month. The PS deliberately failed to bring the KRC MD to mislead this committee,” she alleged.
Committee Chair Tindi Mwale was particularly frustrated by the slow pace of action, questioning the continued verification process by Kenya Railways.
“How long does Kenya Railways need to vet this list? Some of these retirees have already died. For those who have been traced, why haven’t they been paid yet?” he asked.
Following the heated session, Chairperson Mwale ordered that Kenya Railways MD Philip Mainga must appear before PAC alongside relevant officials.
“We expect you to return to this committee with the Kenya Railways MD and any other necessary officials. In the meantime, ensure that retirees who have already been identified receive their payments without further delay,” he ruled.
Source: capitalfm
