Kenya County Government Workers Union has decried continued non-remittance of pension funds by devolved units, stating that the debts currently stand at Sh41.2 billion.

Secretary General Roba Duba regretted that counties have been opting to pay “urgent” debts over remitting pension dues.

Addressing a press conference in Nairobi, Duba said the union is going to petition the National Treasury to look at ways of addressing the matter urgently.

“The issue of pension scheme management has not been given the necessary attention it deserves within the country,” he stated.

Duba added that laws governing the running of the schemes have not been followed by various stakeholders.

“We, therefore, implore upon the government to ensure compliance in terms of proper governance to ensure effective running of the schemes to duly take care of the welfare of pensioners,” he stated.

The Sh41.2 billion money is owed to Local Authorities Pensions Trust (LAPTRUST) and Local Authorities Provident Fund (LAPFUND).

LAPFUND is a defined contribution retirement benefits scheme catering to all employees of county governments, urban areas, cities, and towns (formerly local authorities) and associated institutions, including all members of the county assembly (MCAs).

Members contribute 12 per cent of their pay to the fund while the sponsor, which is the county government, contributes 15 per cent of the member’s gross salary.

In August 2023, a watchdog committee of the Senate waded into the raging debate on the delay by county entities to remit pension funds, warning of dire consequences should the arrears not be settled within the shortest time pension.

The County Public Investments and Special Funds Committee (CPISFC) said the delay by the counties in remitting the funds has impacted negatively on the lives of retired public servants.

Regulation 10(4) of the Retirement Benefits (Occupational Retirement Benefits Schemes) Regulations, 2000 provides that all the pension contributions deducted from members by the employer must be remitted to the pension scheme in full before the 10th day of every calendar month.

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