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County governments have cumulatively failed to remit Sh65.70 billion to retirement pension schemes for thousands of employees, a new report shows.

According to the report, counties owe the Local Authorities Pension Trust (Laptrust) Sh31.1 billion and the County Pension Funds (CPF) Sh2.59 billion. The Local Authorities Provident Fund (Lapfund) was yet to receive Sh31.37 billion as of January 30, 2023.

The report by the National Treasury, submitted to Parliament, shows that all the 47 county governments — except Kajiado and Nyeri — have huge unremitted deductions.

The funds are deducted from salaries but are not remitted to the pension schemes.

“Most of the county governments owe money to various pension funds. But county governments are not reflecting these pension liabilities in their pending bills stock,” the report states in part.

Nairobi County owes Sh39.66 billion, comprising Sh15 billion owed to Lapfund, Sh32.86 million owed to CFP and ShSh24.62 billion owned to Laptrust. The county accounts for more than half of the outstanding dues.

Often, governors say they inherited huge chunk of bills from defunct councils. Others blame the huge bills on erratic cash release by the National Treasury.

The Nairobi County Government, led by Governor Johnson Sakaja, has about 13,000 employees. Each year, a good number of them reach the retirement age.

Mombasa, Garissa, Migori, Kisii, Homa Bay, Wajir, Machakos and Trans Nzoia are yet other counties that owe in excess of Sh1 billion each.

According to the report, Mombasa owes Sh9.44 billion to pension firms.

Garissa is the county that owes the third highest amount. The Nadhif Jama-led government is yet to pay pension schemes some Sh1.83 billion, the report shows.

The three retirement schemes are demanding Sh1.73 billion from Migori County, and Sh1.28 billion from Kisii county, while Homa Bay and Wajir owe the schemes Sh1.10 billion and Sh1.09 billion, respectively.

Meru owes Sh1.00 billion, while Machakos and Trans Nzoia owe Sh951.66 million and Sh903.97 million respectively.

Other counties are Nandi (Sh576.63 million), Uasin Gishu (Sh558.68m), Tharaka Nithi (Sh478.05m), Vihiga (Sh302.32m), Samburu (Sh250.18m), Nakuru (Sh267.36m), Siaya (Sh203.69m), Kiambu (Sh279.42m), Baringo (Sh340.86m) and Wajir (Sh560 million).