Senators are seeking an extension for a multi-agency taskforce mandated to resolve the ballooning pension arrears owed by county governments, with fresh disclosures showing total liabilities have now surpassed Ksh80 billion.
The Senate Select Committee on County Public Investments and Special Funds met the Taskforce on Non-Remittance of Pension Deductions to Pension Schemes over the weekend to review progress. Lawmakers expressed concern over major discrepancies between figures submitted by counties and those provided by pension schemes, noting that penalties and interest continue to inflate the debt.
The taskforce was formed to reconcile these conflicting numbers, harmonise principal amounts with accumulated charges and craft a clear payment framework to safeguard thousands of retired county workers whose benefits remain pending.
Committee Chairperson and Vihiga Senator Godfrey Osotsi said counties with the biggest backlogs particularly Nairobi and Mombasa must be included in the final assessment before the report is tabled.
“I will be seeking an extension from the House so that you can firm up the report and try to reach out to Nairobi and Mombasa Counties, which are yet to meet the taskforce,” Osotsi said.
Pension schemes estimate that counties owe a combined Ksh85.05 billion: Ksh48.79 billion to Lapfund, Ksh32.35 billion to Laptrust and Ksh3.91 billion to CPF.
The committee wants the taskforce to conclude a repayment formula acceptable to the National Treasury, Council of Governors and pension schemes, saying only a unified solution will prevent further financial strain on former county employees and stop the debt from rising.
