Postal Corporation of Kenya (PCK), alias Posta, has failed honour its taxes and retirement benefits obligations, failing to remit employee and taxman dues amounting to KSh1.8 billion.
A report by Auditor General Nancy Gathungu shows trade and other payables balance included pensions and gratuities deductions amounting to KSh1.32 billion that had not been remitted to the staff pension scheme.
Another KSh108.5 million is owed to Cooperatives and KSh305.6 million being staff bank loans deductions were not remitted.
The Auditor General’s report submitted to lawmakers pointed out that payables due included kSh585.1 million being statutory deductions, Value Added Tax withheld, customs and excise taxes and other taxes not remitted to Kenya Revenue Authority.
In the report, the Auditor -General said Posta is technically insolvent.
Early this month, Posta signed a KSh700 million logistics deal with the Independent Electoral and Boundaries Commission (IEBC). The deal will see the firm provide logistics services during the August 2022 General Elections.
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