By Our Reporter
The Kenya County Government Workers Union (KCGWU) has accused county governments of illegally holding back over Sh40 billion in pension contributions meant for the Local Authorities Provident Fund (LAPFUND). This crisis has lasted over 20 years.
Roba Duba, KCGWU National Secretary General, said some unpaid pension arrears began before devolution started and condemned county governments for deducting contributions from workers’ salaries but failing to send them to LAPFUND as required by law.
“This money should be sent to LAPFUND to support its operations and members’ benefits. It’s illegal for counties to hold back or misuse workers’ funds,” Duba said.
Duba expressed frustration over failed efforts to recover the funds and warned that the arrears are growing due to interest and penalties. He urged Cabinet Secretary for Treasury and National Planning John Mbadi to act quickly.
In response, Mbadi recognized the issue’s importance, stating that a task force formed by his office to investigate pension remittance issues has completed its report. “It’s illegal and unconstitutional to hold back workers’ money. Counties have been the worst offenders, and my office is taking firm action,” he said.
Mbadi promised to fully implement the task force’s recommendations to ensure timely pension payments moving forward. “Our goal is to fix the problem of delayed payments for good to protect county workers’ retirement benefits,” he added.
Mbadi also announced plans to meet with union officials to address the long-overdue Collective Bargaining Agreement (CBA), unchanged since 2012. “I will meet with the National Secretary General to discuss this matter. I don’t want to decide without proper discussions,” he noted.
Mbadi praised LAPFUND for protecting members’ savings and making smart investments, including affordable housing projects. He urged other pension and insurance schemes to use Public-Private Partnerships (PPPs) to grow their funds and support national development.
“Corruption will not be tolerated, and members’ contributions must be protected. I thank LAPFUND, under my ministry, for their projects, including affordable housing that supports the government’s agenda and creates jobs,” he concluded.
