Kenya. Devolved pensions owed Sh24bn dues on key date
The pension industry Monday kicked off the 90th anniversary celebrations for the local authorities’ schemes (LapTrust) reeling from Sh24 billion dues unremitted by the counties.
County Pension Fund chief executive Hosea Kili said if paid, pension schemes will partner with the government under a private-public arrangement for implementation of the low-cost housing schemes in major urban centres.
“This is an opportunity for Kenyan workers to contribute towards development of their country by using pension funds to build low-cost houses as well as sponsor development of public projects via infrastructure bonds,” he said.
Devolution Cabinet Secretary Eugene Wamalwa speaking at the event said pension schemes and county governments should consult on the best way to recover the monies.
“Kisumu, Nakuru and Nairobi donated several residential estates to Laptrust to enable it recover the unremitted dues. Under the ‘Big Four’, pension schemes could sign equity shareholding agreements with county governments and fund development of houses that will be sold to Kenyans with both sharing the proceeds,” he said.
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