Economic system

KNH explains Sh8.77bn pending payments for workers pension scheme


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Kenyatta Nationwide Hospital on this photograph taken on December 10, 2019. PHOTO | JEFF ANGOTE | NMG

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Abstract

  • The hospital’s administration says the Sh8.77 billion pending payments as at June 2021 captured by the Well being Sector Finances Proposal is because of a distinction between the scheme’s present revenue and future funding obligations.
  • The Well being Sector Finances Proposal Report stated KNH had pending payments in relation to social advantages amounting to Sh8.96 billion.
  • KNH says the Sh191 million it owed NSSF emanates from contribution arrears between April 2001 and November 2009 when it unsuccessfully sought to be exempted from the statutory pension deductions as a result of it had a “higher pension scheme”.

The Kenyatta Nationwide Hospital (KNH) administration has come out to clarify that it remitted all pension deductions to its employees pension scheme.

The hospital’s administration says the Sh8.77 billion pending payments as at June 2021 captured by the Well being Sector Finances Proposal is because of distinction between the scheme’s present revenue and future funding obligations.

The Well being Sector Finances Proposal Report stated KNH had pending payments in relation to social advantages amounting to Sh8.96 billion.

KNH stated it has a closed-to-new-member outlined advantages scheme the place employees contribute 5 p.c of their primary wage with administration topping it up with 10 per cent of the employees’ primary wage.

“We want to state that the administration has persistently and with out fail remitted the above acknowledged contributions to the scheme for the final 30 years and doesn’t owe the scheme any unremitted funds,” KNH chief government Evanson Kamuri stated in an announcement.

“[The Sh8.77 billion]…is an actuarial deficit in funding which is being addressed by additional contribution of Sh100 million per 12 months since 2014 and different remedial measures being labored on by the sponsor.”

The report, revealed by the Treasury forward of the 2022/23 budgetary allocations, signifies Sh8.77 billion pending payments is in type of pension deficit within the KNH Workers Superannuation Scheme and the rest Sh190.83 million in arrears to Nationwide Social Safety Fund (NSSF).

KNH says the Sh191 million it owed NSSF emanates from contribution arrears between April 2001 and November 2009 when it unsuccessfully sought to be exempted from the statutory pension deductions as a result of it had a “higher pension scheme”.

This comes at a time when parastatals have come below rising stress to cease defaults on pension remittances which is turning into a nightmare for retirees.

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