How KPA staff exploited gap in rules to register more dependants in medical scheme

A conflicting clause in the Collective Bargaining Agreement (CBA) and Human Resource Manual of the Kenya Ports Authority (KPA) led to the staff at the authority registering more children and spouses above the age prescribed.

The revelations emerged during a meeting between management of KPA and the National Assembly committee on Commercial Affairs and Energy during the consideration of the authority’s audit report for the financial year 2019/2020 and 2020/2021

During the deliberations, it emerged that while the KPA Human resource manual provided for staff to register a maximum of four children up to the age of 22 and a spouse of up to the age of 60, the CBA signed between the staff and the management had no limit on the number of dependents and age limit for spouses to register for medical scheme.

This created a conflict within the authority between the staff and the management leading to the suspension of their HR manual and reverted to the provisions contained in the CBA.

This opened floodgates where an audit report currently being examined by the committee indicates that some employees registered up to 11 children and more spouses above 60 years in the scheme.

The committee put to task the management that was led by managing director William Ruto to task on how it discarded its own human resource manual and resorted to using a CBA

Members of the committee argued any medical insurance has limits to its staff hence it cannot be that a government entity has no such safeguards.

“Even here in parliament, we can only register a certain number of children and one wife,” said the committee chairman and Pokot South MP David Pkosing.

“The HR manual of KPA provides for four children yet the staff registered up to 11 children, was this an abuse of office? Posed Mr Pkosing.

Ms Cheryl Majiwa, a representative of the National Treasury attached to the committee told MPs there is normally a cap placed on dependants and amounts disputing explanations by KPA that there was no such limit in their HR policy.

“Normally there is a cap on medical expenses depending on the level of staff,” Ms Majiwa said.

According to the Auditor General’s report, medical documents availed by the authority for audit review indicated that the authority had 6, 583 principal members, 4,632 spouses and 13, 379 as at June 2020

However, the management through a circular suspended section 1 (a) and (f) of the Kenya Ports Authority human resource manual 2017 which requires an employee to be eligible for medical treatment for self, spouse below the age of 60 years and a maximum of four children up to the age of 22 years.

This according to the audit report led to the employees registering up to 11 children a move which resulted into registration of 1,067 in excess dependants

The report also indicates that a total of 73 spouses above the age of 60 years were registered as dependants.

Due to the registration of children above the age of 22 years and spouses above 60 years, the report indicates that the authority incurred an additional combined figure of Sh5, 777,300 more in its medical expenses.

Ms Nancy Gathungu in her report pointed out that the move by KPA to vary the terms of its employees was against section 11 of the Kenya Ports Authority Act, CAP 391 which states that it’s only the minister who has powers to approve any changes in terms of salaries or other terms of employees.

Ms Gathungu says the ministerial approval was not availed during the audit.

“Ministerial approval of suspension of the provisions of the policy manual was not availed for audit review contrary to section 11 (c) of the Kenya Ports Authority Act Cap 391 which gives powers to the minister to approve any major altercations in salaries, wages or other terms and conditions of service of employees,” reads the audit report.

The lawmakers also questioned how the authority allowed some of the employees in the management level who are not to enjoy treatment in private facilities were allowed to access services in those hospitals leading to the authority incurring Sh104, 384,460

Mr Ruto however defended the registration of more dependants saying it was not irregular as there was suspension of the provisions ion their HR manual which limited dependants to four children up to the age of 22 years and spouses below the age of 60

“This change was an emotive issue leading to suspension of the clauses in the Human Resource manual 2017 and deferment in the CBA 2018-2019 and 2020-2023. The matters were still under negotiation hence the registration is not irregular,” Dr Ruto said.

On the access of private facilities, Dr Ruto said the employees have access to private hospital wards depending on the grade.

For instance those in grade HE1 have access to private suites, those in HE2 and HM1 are entitled to access private ward while those in grade HM2, HM3 and HM4 are entitled to be in semi-private ward.

Those in grade HG1 up to HG4 are entitled to patient care in the general ward of a private hospital.

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