Counties yet to remit Sh65b pension cash, union reveals
By Rawlings, May 31, 2023
Pension debts have increased tenfold since the onset of devolution due to lack of proper regulations and enforcement, Kenya County Government Workers Union has said.
Two pension funds, Local Authorities Pensions Trust (LAPTRUST) and Local Authorities Provident Fund (LAPFUND) are embroiled in a fight for the numbers of county government workers in the 47 counties.
The union is proposing legislation to empower the National Treasury to disburse funds directly to the statutory institutions.
In addition, the Union recommends that the Office of the Controller of Budget (CoB) reins in counties to ensure compliance with the remittance of statutory deductions.
“We recommend that you review the County Governments Act and other regulations to leverage on individual responsibility and stiff punishment for office holders who fail to remit statutory deductions in real-time,” Kenya County Government Workers Union Secretary General Roba Duba (pictured) said when he appeared before the Senate County Public Investment and Special Funds committee yesterday.
The union officials said the debts owed to the pension schemes by the counties stand at Sh65.7 billion out of which LAPFUND is owed Sh31.37 billion while LAPTRUST is owed Sh34.33 billion.