Senate probes Technical University of Kenya pension scandal as workers lose Sh5.3 billion
The committee was shocked to learn that for 15 years, the university deducted employee contributions but failed to remit both employee and employer contributions to the custodian bank, KCB.
The Senate has begun investigations into the collapse of the Technical University of Kenya Staff Retirement Benefits Scheme (TU-K SRBS) following a petition by affected workers.
The workers claim financial mismanagement spanning more than a decade, leading to losses amounting to Sh5.3 billion.
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The Senate Committee on Labour and Social Welfare during a session on Thursday chaired by Senator Julius Murgor (West Pokot), University Academic Staff Union (UASU) TUK Chapter Secretary Fred Sawenja outlined a troubling sequence of events that began in July 2009.
He revealed that the university deducted pension contributions from staff salaries before establishing a registered scheme or governance structures.
The scheme was only formally recognised by the Retirement Benefits Authority (RBA) in November 2013, but concerns over remittances arose almost immediately.
"By 2014, the union had already complained to the RBA about missing funds. Within a year of the scheme’s registration, remittances had already become an issue," Sawenja said.
The committee was shocked to learn that for 15 years, the university deducted employee contributions but failed to remit both employee and employer contributions to the custodian bank, KCB.
Formal liquidation order
Even after the RBA sought a court order to wind up the scheme in September 2017, deductions continued for two months beyond the High Court’s formal liquidation order in July 2024.
Sawenja identified former vice-chancellor, Prof Francis Aduol, University Bursar and Finance Officer Ben Sanda, and Council Legal Officer Ruth Kirwa as key figures in the financial mismanagement.
However, Senator Murgor questioned why the scheme’s board of trustees failed to safeguard workers’ interests.
Former Trustee and Academic Staff Representative Peter Kanyuira attributed the failure to a conflict of interest within the board.
He explained that while three trustees were elected by staff, the university council appointed three others and irregularly co-opted four more, shifting control away from employees.
Further scrutiny
Senator Beth Syengo called for further scrutiny and moved to summon all implicated individuals, including the scheme administrator (CPF), custodian (KCB), and fund manager (Coop Trust), for questioning.
Senator Miraj Abdullahi expressed solidarity with the petitioners and questioned why the Central Organisation of Trade Unions (COTU) Secretary-General Francis Atwoli had not intervened.
"These workers served this country in their youth, yet in old age, they have been abandoned. We need the trade union boss to tell us why he is not defending their rights," she said.
Although UASU is not affiliated with COTU, Senator Murgor reassured the petitioners — many of whom are struggling, experiencing psychosocial distress, or have passed away — that the committee would push for justice.
"This committee stands with you. We will see this matter through to its logical conclusion," he vowed.
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