County governments seek to set up own pension scheme

County governments are in the process of establishing and implementing a uniform pension scheme to cater for their employees.

Governors, County Assemblies Forum (CAF), County Public Service Boards (CPSB) and County Assemblies’ Service Boards proposed the setting up of a County Pension Fund to take up the role of managing county governments’ pension scheme.

During a consultative meeting held at Maanzoni Ranch in Machakos County, Council of Governors (CoG) Chairman Governor Isaac Ruto (Bomet) and Human Resource and Social Welfare Committee Chairman Governor James Ongwae (Kisii), CAF Chairman Abdi Nuh and chairpersons of the boards resolved to come up with the fund, taking into account the different pension schemes used by employees presently.

Ruto and Ongwae regretted that 18 months after devolution was established, the pension issue remains unresolved.

The meeting resolved to form a technical committee that will oversee the process of establishing a pension fund and its manager and come up with a report within two months.

The committee chaired by Ongwae consists of representation from CAF, CPSB Forum, County Workers Union, Kenya Union of Civil Servants, Kenya Law Reforms and Retirement Benefits Authority.
“Our meeting was very fruitful. We agreed on a uniform fund, which will have picked from Laptrust,” said Ruto.

LEGAL SUITS

Ongwae noted that counties’ employees have been using different pension schemes and with the adoption of the proposed one, they will operate at the same level.

Meanwhile, the devolution stakeholders want the Senate to fast-track the passing of the Statute Law (Miscellaneous Amendments) Bill sponsored by the county assemblies, which seeks among other things to merge Laptrust and Lapfund. The two administrators are currently offering administrative services for counties.
“If this bill is passed, it will harmonise county pension,”said Ongwae.

Ruto said they cannot continue having employees whose retirement is unclear.
He said it is only three years to the next polls and some county employees will require pension as they go home, adding he would not want to hear them say the pioneer office holders in the county leadership failed in their mandate.

“This meeting is timely for us to decide on which institution would take care of our pension interests. It is not necessarily a parastatal. We can have one which invests in our counties as well; the counties can also have some property. What is wrong with that?” He asked.

The leaders present said they preferred the proposed fund due to its neutrality, saying it does not have legal suits like Lapfund and Laptrust.