County governments struggling to settle retirees' dues as funds diverted to other uses
By Maureen Kinyanjui |
The diversion of funds has left many retirees, some of whom have passed away, without the financial support they worked hard to secure during their employment.
Over 1,080 former employees of the defunct Nairobi City Council are facing financial hardship, with a total of Sh305 million in retirement dues still owed to them.
Despite funds being approved for payment, reports indicate that the allocated money is often diverted to other purposes, delaying or preventing retirees from receiving their rightful terminal benefits.
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During a session of the Labour and Social Welfare Committee on Tuesday, Public Service Chief Officer Janet Omollo Opiata confirmed that the county government is struggling to settle the retirees' dues.
As of October, only Sh62 million of the Sh305 million owed to the retirees had been paid.
"We usually process all the payments for the terminal dues, and it is usually approved for payment by the Controller of Budget. But the main problem is that once it reaches the operational account, it is usually diverted to pay other suppliers," Omollo revealed.
"That means that we once again have to begin the process afresh, and it is time-consuming," she added.
The ongoing diversion of funds has left many retirees, some of whom have passed away, without the financial support they worked hard to secure during their employment with the county government.
Dandora 1 MCA Allan Gathuku, who chairs the committee, emphasised the need to prioritise the welfare of the elderly retirees.
"These are old people who worked tirelessly to secure their future. We have some situations where some have died and they have never received their dues," Gathuku said.
Fix the mess
"Some are suffering in retirement yet they worked for the county government. We need to prioritise the needs of these former employees and fix the mess," he added.
The issue extends beyond Nairobi.
In Kisumu County, 14 retirees of the defunct Municipal Council of Kisumu are also facing a similar plight.
A total of Sh16 million was allocated in the 2022/2023 financial year to settle their retirement dues, but the funds have yet to be paid.
The retirees, led by Jeremiah Achola, had previously secured a judgment of Sh18.5 million against the defunct council.
In a ruling on Monday, Employment and Labour Relations Court Judge Jacob Gakeri directed the Kisumu Finance executive to ensure the money is paid to the retirees.
The financial mismanagement appears to be a recurring problem.
Payments are requisitioned from the County Revenue Fund to the Controller of Budget for withdrawal and approved for legitimate suppliers. However, once the funds reach the operational account, they are redirected through the Integrated Financial Management System to different suppliers, bypassing the original beneficiaries.
This diversion of funds is not only leaving retirees without their dues but is also causing unnecessary delays and frustrations.
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