Senate summons CEOs over missing Sh244 million from Technical University of Kenya Pension Scheme

Lecturers and workers of the Technical University of Kenya officially during a strike on January 23, 2025. (Photo: Gee X)

By Lucy Mumbi
Thursday, October 2, 2025

The move follows revelations that Sh244 million deducted from employees’ salaries between 2009 and 2013 was never remitted into the registered scheme.

Senators have summoned CEOs of the Kenya Commercial Bank, Central Pensions Fund and Octagon Pension Services to appear before the Labour Committee over missing millions from the Technical University of Kenya Staff Retirement Benefits Scheme.

The move follows revelations that Sh244 million deducted from employees’ salaries between 2009 and 2013 was never remitted into the registered scheme, alongside unremitted contributions exceeding Sh2.8 billion and accumulated interest of Sh1.3 billion.

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The Senate Standing Committee on Labour and Social Welfare escalated its investigation on Thursday by rejecting submissions from mid-level representatives of the scheme’s administrator, custodian bank and fund manager, instead invoking constitutional powers to compel the personal attendance of the institutions’ chief executives.

The session, chaired by West Pokot Senator Julius Murgor, continued the probe that began on September 25, during which TUK Vice Chancellor Prof Benedict Mutua and Retirement Benefits Authority (RBA) CEO Charles Machira disclosed the missing funds and interest totals.

“The amounts in question are staggering, and the impression being made is that some people benefited from millions meant for others. Therefore, the seriousness of this issue demands we insist on the attendance of the decision makers of these institutions,” Kilifi Senator Stewart Madzayo said.

Kajiado Senator Seki Lenku stressed that only CEOs could provide binding assurances.

“Representatives cannot offer finality on information and action sought, which will draw out the process,” he said.

Those appearing before the committee included TUK Vice Chancellor Prof Mutua, Council Chairperson Idle Omar Farah, CPF Pensions Manager Michelle Nyandiko, Octagon Pension Services Director Anthony Odhiambo and KCB Head of Investor Services Florence Nduba. Petitioners led by UASU TUK Chapter Secretary Fred Sawenja were also in attendance.

However, senators refused to proceed, insisting that only the chief executives of the financial institutions could adequately respond to allegations of mismanagement.

Murang’a Senator Joe Nyutu clarified that the insistence on hearing from CEOs was not meant to undermine the representatives of the financial institutions but to ensure that authoritative and actionable commitments were obtained.

“Our insistence on hearing from CEOs is not meant to belittle the representatives of the institutions but is rooted in Senate precedents and the pragmatic need for authoritative, actionable commitments,” he said.

Senators also revisited allegations by petitioner Sawenja that a member education meeting had been disrupted by former acting Vice Chancellor Prof Francis Aduol, allegedly preventing service providers from disclosing critical information. Senators demanded that Prof Aduol appear to clarify whether the providers withdrew voluntarily or under pressure.

Citing Article 125 of the Constitution and the Parliamentary Powers and Privileges Act, which grants committees the authority to summon individuals and impose fines of up to Sh500,000 for non-compliance, the committee directed that the CEOs of KCB, CPF and Octagon Pension Services must personally appear at the next sitting, scheduled for October 21, 2025.

Failure to attend, senators warned, would trigger formal sanctions.

The institution reportedly failed to remit staff contributions for years, with funds deposited into an unregistered and non-compliant account.