The High Court, in a landmark decision on Friday, mandated the Retirement Benefits Authority (RBA) to promptly address a longstanding grievance concerning the non-payment of pension dues raised by 120 former employees of the now-collapsed ARM Cement.

Justice John Chigiti, presiding over the case, emphasized the urgency of the matter, instructing the RBA to resolve the dispute within 45 days.

The judge criticized the authority for neglecting the pensioners' complaints over the past three years.

"This is a clear case of a failure to act fairly on the part of the decision-making authority. The applicants have established a case of procedural impropriety, and I so hold," Chigiti asserted.

The dispute originated when the retirees, on September 11, 2020, filed a complaint with the RBA, alleging non-payment of their pension benefits.

Read More

  1. Blow to medical interns as court upholds stipend cuts amid fiscal limitation
  2. Multiple Hauliers (E.A) Limited enters insolvency as Official Receiver takes over
  3. Tuju pains as court clears way for auction of Karen property over Sh4.5 billion debt

In response, the RBA contended that it couldn't act on the matter, citing that the pensioners were pursuing legal action against ARM, a move beyond the authority's mandate.

Justice Chigiti rebuked the RBA for not formally informing the retirees about its decision, stating, "A statutory institution like the 1st respondent that deals with fragile members of our society must be better when it comes to the promotion of social justice under Article 43 of the Constitution."

The former employees had taken legal action against both the RBA and Zamara Fanaka Retirement Fund (Pension Scheme), formerly known as Alexander Forbes Financial Services East Africa Ltd.

They asserted their status as former ARM Cement employees and members of the Zamara Fanaka Retirement Fund, which managed their pension contributions.

Despite filing their complaint with the RBA three years ago, the retirees saw no resolution, prompting them to seek legal intervention.

The RBA, in its defence, claimed to have responded on September 7, 2020 and sought input from the scheme on the pensioners' concerns.

The authority believed that the pensioners were seeking a judgment against the scheme, an action deemed outside its jurisdiction.

The court also learned that ARM Cement's financial difficulties led to the failure of remitting contributions to the retirement scheme.

However, Justice Chigiti underscored that RBA, as a statutory institution, should uphold its responsibility to address complaints within the stipulated six-month timeframe.

This decisive court ruling marks a significant step toward justice for the aggrieved pensioners, highlighting the importance of statutory institutions fulfilling their obligations to vulnerable members of society.