Senators seek extension for taskforce to tackle Sh80 billion county pension debt
The proposal follows concerns over discrepancies in reported debts and the rising penalties that have pushed total liabilities beyond Sh80 billion.
Senators are now seeking an extension of a multi-agency taskforce to finalise a framework for settling billions of shillings in outstanding pension arrears across county governments.
The proposal follows concerns over discrepancies in reported debts and the rising penalties that have pushed total liabilities beyond Sh80 billion.
More To Read
- Regulator revives plan to limit early pension withdrawals to 30 per cent before age 50
- Why employers who fail to remit statutory deductions could face criminal charges
- MPs warn Treasury over lapses in fiscal discipline, pension system delays
- State agencies owe Sh6 billion in unpaid statutory deductions, Treasury warns
- New Bill could allow civil servants to access entire pension upon exit
- Kenya’s pension assets soar to record high, surpassing Sh2 trillion
The Senate Select Committee on County Public Investments and Special Funds (CPISFC) met with the Taskforce on Non-Remittance of Pension Deductions to Pension Schemes by County Governments over the weekend to review progress on resolving the ballooning pension debt owed by county entities.
The committee recommended the establishment of the taskforce after uncovering major inconsistencies between pension debt figures reported by county governments and those claimed by pension schemes.
Details emerged that liabilities had risen to more than Sh80 billion, largely driven by accrued penalties and interest. As a result, the taskforce was mandated to reconcile these conflicting figures, harmonise principal amounts with the accumulated charges and develop a clear payment framework to settle the outstanding debts that continue to threaten the financial security of retired county employees.
During the briefing, Committee Chairperson and Vihiga Senator Godfrey Osotsi emphasised the need for a comprehensive report capturing data from all devolved units, especially those with the largest backlogs.
“I will be seeking an extension from the house (Senate) so that you can firm up the report and include/ try to reach out to Nairobi and Mombasa Counties, which are yet to meet the task force,” Osotsi said.
Nairobi and Mombasa counties have previously been identified as carrying the highest pension liabilities.
The total arrears, according to pension schemes, amount to Sh85.05 billion, which is broken down as follows: Sh48.79 billion owed to Lapfund, Sh32.35 billion to Laptrust and Sh3.91 billion to CPF.
The committee wants the taskforce to conclude a payment formula that is acceptable to the National Treasury, the Council of Governors and the pension schemes to provide a long-term solution to these historical pending bills.
Top Stories Today
