Counties owe pensioners Sh42b in accrued arrears

Pensioners in all the 47 devolved units want to be paid Sh42 billion in pension arrears owned to them by counties.

Speaking on Tuesday, Kenya County Government Workers Union (KCGWU) Secretary General, Roba Duba said the arrears have accrued since the era of the defunct municipal councils.

“I am urging the Cabinet Secretary for Devolution and governors to pay pensioners so that they can lead better lives,” said Mr Duba.

He was speaking during the 19th anniversary of the Local Authorities Pension Trust (Laptrust), one of the custodians of county pensioners' money.

Duba said county governments have also been failing to remit pension deductions to schemes, which has further aggravated the retirees’ owes.

Laptrust Chief Executive Officer Hosea Kili particularly cited the case of the Nairobi County Government which apparently owes the scheme Sh15 billion.

Mr Kili said City Hall should consider ceding some of its assets in order to offset the debt as it has done in the past.

He proposed a scenario where if City Hall could cede some of its land in the capital, Laptrust could build a parking lot and a market on that land, and share revenues with Nairobi County.

"Pension funds across the world are usually invested in social welfare projects. We would like to partner with Nairobi County on such projects," said Kili.

Nairobi County Governor Mike Sonko, however, brushed off such proposals and said Laptrust's debt was not as big as what the scheme was alleging.

Mr Sonko said City Hall has only failed to remit three-months deductions to Laptust which cannot amount to Sh15 billion.

Devolution CS Eugene Wamalwa told the counties to pay their pension debts so that retirees do not suffer.

“Lack of proper planning is what is making the county retirees suffer. More than 86 per cent of Kenyans do not have access to pension services,” Mr Wamalwa said.