Former senior officials of the Technical University of Kenya (TUK) are under scrutiny over the alleged embezzlement of Sh245 million in pension contributions that were unlawfully stashed in a savings account, raising suspicions of collusion at the university’s highest levels.
The contribution schedule into a Kenya Commercial Bank (KCB) savings account indicates that staff remitted Sh81.6 million, while TUK contributed Sh163.3 million between 2010 and 2013 bringing the total to Sh244.9 million.
By April 2013, the account reflected the full amount, then barely a month later, the balance had mysteriously shrunk to just Sh9.5 million. When the university registered its Staff Retirement Benefits Scheme (TUK-SRBS) in November 2013, the savings account held a balance of Sh9.5 million, but the amount was never transferred to the staff pensions scheme.
Documents tabled before Senate show signatories to the account were Prof Francis Aduol (VC), Prof Paul Shiundu (acting Dep VC), Prof Suki K.K Mwendwa (acting deputy VC), Mr Jamleck Kanambiu (acting chief accountant), and Mr Stanley M. Mwangi (acting finance officer).
“A total of Sh244 million was collected, kept in a savings account which was not compliant with the RBA Act and by the time the retirement scheme was registered, the money had vanished,” Retirements Benefits Authority (RBA) chief executive Charles Machira told the Senate Committee on Labour and Social welfare.
According to Mr Machira, both the Kenya Polytechnic University College (KPUC) and its successor TUK admitted to diverting the funds in what they termed “unavoidable circumstances”.
Prof Aduol was appointed founding principal of KPUC in 2008. In 2013, when the Kenya Polytechnic was upgraded to TUK, he became its first vice chancellor and served in this position until his retirement in 2023.
Prof Shiundu was appointed acting vice chancellor on May 16, 2023. In August of the same year, Prof Benedict Mwavu Mutua was appointed vice chancellor.
Prof Mutua, under intense questioning by the senators, conceded culpability.
“We accept that the law was broken,” he admitted, attributing the failure to remit deductions to financial strain arising from the National Treasury’s failure to disburse the full amounts due to the institution.
Prof Mutua further told senators that all signatories to the savings account have since retired or left the institution except for one whose name he did not mention. Prof Aduol has since been appointed a commissioner at the Independent Electoral and Boundaries Commission (IEBC).
Kitutu Chache Senator Richard Onyonka pressed the RBA chief for clarity, asking: “From your observation, was this amount ever remitted to you, or was it diverted to other uses?”
“What is the hope of employees who suffer deductions which was not then remitted to the scheme?” posed Murang’a senator Joe Nyutu.
The RBA chief explained TUK is required to provide a remedial plan outlining measures to be put in place to ensure the remittance of the outstanding contributions. But all RBA has gotten are commitments that were never honoured.
“So in 2017, the Authority decided to escalate supervisory intervention by appointing an interim administrator/receiver, Octagon Pension Services Ltd.”
Its mandate was to identify anomalies and recommend whether to revive or wind up the scheme. By then, the funding level had fallen to 20 percent, far below the 100 percent required by law, which led the RBA to pursue liquidation.
“In 2017, in fulfilment of the liquidation option and with the view of protecting members’ rights, we moved to court seeking orders to wind up this scheme. The orders were issued seven years down the line in 2024,” said Mr Michira.
The High Court order brought the curtains down on the long-running saga that has brought anguish and distress to TUK employees, who are members of the scheme.
He noted that the amount held by the custodian of the TUK pension scheme is Sh755 million against outstanding liabilities of Sh4.3 billion, in essence the funding level is 17 percent
“In reality, a member entitled to Sh1 million in pension benefits can only be paid Sh170,000,” Mr Machira told the committee chaired by Kilifi Senator Justice Stewart Madzayo.
In March 2025, the Senate Committee on Labour and Social Welfare launched investigations into the collapse of the Technical University of Kenya Staff Retirement Benefits Scheme, following a petition by affected workers alleging financial mismanagement.
Mr Fred Sawenja, the secretary of the TUK chapter of the Universities Academic Staff Union (Uasu), said the retirees and staff who are about to retire are faced with the real risk of losing their lifelong pension savings after many years of dedicated public service.
“We believe that these are persons of interest who should be probed further and held accountable for sins of commission or omission,” he said.
Those cited include Prof Aduol, the university secretary, Chief Legal Officer Ruth Kirwa, and the bursar and chief finance officer Mr Ben Sanda.
In his submission, Mr Sawenja noted that many scheme members had died while waiting for their pension, others have retired into poverty, while others have developed psycho-social stress and complications due to the failure of the scheme.
