The Local Authorities Pensions Trust, the University of Nairobi, and Moi University pension schemes are among the leading institutions with the highest amounts of deducted, but unremitted pension funds for their members, now totalling Sh57 billion in 47 institutions.
According to documents before the National Assembly Committee on Finance and National Planning, as of December 31, 2024, the Local Authorities Pensions Trust had a total of Sh8.8 billion in unremitted pensions.
The University of Nairobi Pension Scheme (2007) has failed to remit Sh8.3 billion, while the Local Authorities Provident Fund is holding Sh6.8 billion in unremitted funds.
The entrance to the University of Nairobi. The University of Nairobi Pension Scheme (2007) has failed to remit Sh8.3 billion.
Photo credit: File | Nation Media Group
The document, tabled by the Retirement Benefits Authority (RBA), indicates that cumulatively, 47 pension schemes are holding a combined amount of Sh56.9 billion.
Of this amount, Sh54.4 billion is being held by institutions in the public sector, while Sh2.4 billion is pending from private sector institutions.
The document does not list the private sector institutions holding the Sh2.4 billion of unremitted pensions in the private sector.
The document further indicates that the Public Service Superannuation Scheme is yet to remit Sh6.1 billion, Moi University Pension Scheme is holding Sh4.4 billion, and the Kenyatta University Staff Retirement Scheme has yet to remit Sh4.4 billion.
The entrance to Moi University's main campus in Kesses, Uasin Gishu County on February 8, 2024. Moi University Pension Scheme is holding Sh4.4 billion.
Photo credit: Jared Nyataya | Nation Media Group
The Retirement Benefits Authority reports that the County Pension Fund has yet to remit Sh4.3 billion.
The Postal Corporation of Kenya Staff Retirement Benefits Scheme has yet to remit Sh1.2 billion, Multimedia University College Pension Scheme has Sh691 million, the Water Sector Institutions Pension Scheme Sh494 million, while Moi Teaching and Referral Hospital is yet to remit Sh474 million.
The entrance to Mumias Sugar Company.
Photo credit: File | Nation Media Group
At the same time, Nzoia Sugar Company holds Sh329 million in staff pension funds, Mumias Sugar Company Sh306 million, Moi University Provident Fund Sh287 million, and the National Water Conservation and Pipeline Corporation Staff Retirement Benefits Scheme holds Sh237 million in unremitted pension funds.
The document shows that South Nyanza Sugar Staff Pension Scheme is holding Sh227 million, Mumias Sugar Company Provident Fund Sh179 million, Chemelil Sugar Company Staff Pension Scheme Sh131 million, while Rongo University Pension Scheme has yet to remit Sh78 million.
The Sports Stadia Management Board Staff Pension Scheme has yet to remit Sh74 million, Kenya Wildlife Service Staff Retirement Scheme Sh40 million, Taita Taveta College Staff Benefits Scheme (2006) Sh38 million, Kenya Utalii College Sh26 million, while the Kenya Industrial Research and Development Institute also has Sh26 million in unremitted pensions.
The document also indicates that the Jomo Kenyatta Foundation Staff Retirement Benefits Scheme has yet to remit Sh23 million, Kenya School of Government Sh22 million, Kenya Broadcasting Corporation (KBC) Sh21 million, South Eastern University of Kenya Pension Scheme Sh18 million, while Maseno University has yet to remit Sh13 million.
According to the document, the National Museums of Kenya Staff Pension Scheme has yet to remit Sh12 million, Lake Basin Development Authority Sh10 million, Dedan Kimathi University Staff Retirement Benefits Scheme Sh10 million, Judicial Service Staff Superannuation Scheme Sh8 million, while Pwani University is also still holding Sh8 million.
A signpost near the entrance to the East African Portland Cement Company factory in Athi River. East African Portland Cement is listed as holding Sh8.5 million in pension funds.
East African Portland Cement is listed as holding Sh8.5 million in pension funds, KENAS Staff Retirement Benefits Scheme Sh7.6 million, Egerton University (Grades 1-4) Sh6.8 million, National Cohesion and Integration Commission Sh6.4 million, while Kenya Water Institute Staff Retirement Benefits Scheme has yet to remit Sh4.3 million.
Other institutions in default include the Kenya Dairy Board Staff Pension Scheme (Sh2.7 million), Kenya National Bureau of Statistics (Sh1.6 million), WASPA Pension Fund (Sh1.4 million), Koitalel Samoei University Staff Pension Scheme (Sh1.3 million), and the National Water Conservation Staff Superannuation Scheme, which is yet to remit Sh473,367.
The committee chairman, Kuria Kimani, now wants the National Treasury to take legal action against the accounting officers of the various institutions that have failed to remit pension funds despite deducting the money from employees.
“There is no reason at all why you should deduct someone’s money and fail to remit it. The National Treasury should charge their accounting officers for flouting the PFM Act by deducting money from employees and failing to remit it,” Mr Kimani said.
Karachuonyo MP Adipo Okuome lamented that some retirees, whose money is being withheld, are suffering while the Treasury has yet to take action against the institutions responsible.
“It’s a shame that someone can sit on retirees' money, and the Treasury is not doing anything about it. Or are you part of the problem?” he asked.
Samuel Kiptarus from the National Treasury told MPs that Cabinet Secretary John Mbadi had established a multi-sectoral task force to look into pending pension bills, and it has yet to finalize its report.
Mr Kiptarus, a member of the task force, said that Mr Mbadi had tasked the team with, among other things, determining the actual pension owed to retirees, assessing the progress made in clearing arrears over the years and making appropriate recommendations on how to clear the outstanding pensions.
“So far, we are waiting for the task force to present its report,” Mr Kiptarus told the committee.
However, Mr Kimani dismissed the task force, arguing that the institutions responsible for the violations are already known, making the task force redundant.
“Sometimes we promote illegality through task forces. The information is already here with us. We simply wrote to the Retirement Benefits Authority, and they provided a full report of all the institutions and the amounts. What else is the task force doing or looking for?” he asked.
According to the Retirement Benefits Act, in cases of non-remittance by an employer, the RBA will direct the employer to pay the contributions and accrued interest to the scheme in full within a specified period. Additionally, a penalty of five percent on the unremitted contributions or Sh20,000 (whichever is higher) must be paid within seven days of receiving notice.
The RBA may also issue a temporary cessation order on deductions from employees until the employer is able to remit the required funds. If the employer remains unable to comply, the RBA will facilitate members' transfer to other schemes where their contributions can be properly remitted.
