NAIROBI, Kenya – A parliamentary watchdog has summoned Kenya Railways Corporation (KRC) Managing Director Philip Mainga to explain the 19-year delay in paying Sh21.9 million owed to retired employees.
The Public Accounts Committee (PAC) of the National Assembly also directed Transport Principal Secretary (PS) Mohammed Daghar to appear before it, following revelations that 270 former employees have been waiting for their benefits since 2006.
According to the Auditor General’s report on the 2022/2023 financial year, the Sh21,950,404 remains unclaimed in the State Department of Transport’s account at the Central Bank of Kenya.
The report also noted that the funds lack a detailed list of beneficiaries or an explanation as to why the responsibility for payment was transferred from KRC to the State Department.
“Further, the State Department did not explain why the role of paying Kenya Railways retirees was transferred to them,” the report stated.
When PS Daghar appeared before PAC, the Butere MP Tindi Mwale-led committee grilled him over the prolonged delay, expressing concern that many retirees had fallen into financial hardship, depression, or even died waiting for their money.
Aldai MP Maryanne Keitany questioned the State Department’s inaction for nearly two decades.
“What has the money been doing in the account all these years? Was it meant to accrue interest? And if so, will the retirees receive their dues with interest? These people worked hard for this money, yet they’ve been left suffering in the streets protesting some have even passed away waiting,” she said.
Daghar responded that the funds could only be released upon instruction from Kenya Railways, which first had to vet and verify the retirees.
“It is true that Sh21,950,404 remains unclaimed in the State Department’s account. However, it was transferred to us for safekeeping and is only payable once Kenya Railways submits a verified list of beneficiaries,” he said.
He further explained that tracking down some retirees had proven difficult, which had contributed to the delays.
Daghar’s response, however, angered lawmakers, who dismissed it as casual and inadequate.
“For how long will Kenya Railways claim to be vetting retirees? Many of them have already died,” questioned Chairperson Mwale.
“For those you have already traced, why haven’t you paid them? Even retirees with active bank accounts are still waiting!” he added.
Samburu West MP Naisula Lesuuda criticized the State Department’s claim that some retirees could not be traced.
“These retirees worked for Kenya Railways for years, and their details were in the system. How is it that when it’s time to pay them, they suddenly can’t be found?” she asked.
Rarieda MP Otiende Amollo questioned whether any effort had been made to inform retirees about their pending payments.
“How do you expect retirees to know they are being sought for payment? Have you advertised or taken any initiative to notify them?” he asked.
Funyula MP Wilberforce Oundo accused the State Department of failing in its duty.
“For all these years, you have done nothing not even consulted Kenya Railways about releasing the funds. Doesn’t it disturb your conscience that you’ve sat on these payments for almost two decades?” he asked.
MP Keitany also dismissed the PS’s claim that some beneficiaries could not be traced, revealing that Kenya Railways keeps a complete record of its retirees because they continue receiving monthly pensions.
“I worked at KRC, and I know for a fact that they have a full list of retirees. The PS is misleading this committee by pretending not to have access to these records,” she stated.
Mathioya MP Edwin Mugo pressed for clarity on how the department planned to pay retirees without bank accounts.
Following the heated session, Chairperson Mwale ruled that Kenya Railways MD Philip Mainga must appear before the committee alongside relevant officials.
“We expect you to appear before this committee with the KRC managing director and any staff necessary to resolve this issue. In the meantime, ensure that those retirees who have already been identified receive their payments immediately,” he directed.
