Union demands Sh57bn owed to staff and pensioners after Uhuru order

The national and county governments have been told to settle Sh57 billion debts they owe pensioners and workers' unions.

The call came from the Kenya County Government Workers Union following the directive by President Uhuru Kenyatta on Madaraka Day that all pending bills should be cleared by June 30.

“I am calling on the counties to ensure that even as they pay contractors for services they also clear debts with the workers’ pensions to enable them to lead better lives,” KCGWU secretary general Roba Duba said.

He said the 47 counties owe the union Sh42 billion. The debt, which predates devolution, has adversely affected the staff with most of them unable to save for retirement.

Duba spoke during the 90th anniversary of Local Authorities Pensions Trust (Laptrust) celebrations at City Hall earlier in the week.

City Hall owes Laptrust Sh15 billion. Some Sh600 million has been accrued since January 2019.

Laptrust Chief Executive Hosea Kili suggested a property swap deal with City Hall to offset the debt.

Kili had in the past asked the county government cede a piece of land on which Laptrust can build a modern parking ground and market.

“Pension funds across the world are used to sort out social issues and as Laptrust we are more than willing to partner with the government to undertake various projects. For example, Tanzania has built universities and infrastructure using pension funds,” he said.

Nairobi Governor Mike Sonko said that his administration is in talks with the national government over the settlement of the Sh15 billion debt among others.

He said the national government owed City Hall Sh200 billion. He said a Nairobi revenue regeneration project had been launched.

“We have started a Nairobi revenue regeneration project which will see us get paid. We shall use the same money to pay off Laptrust, the workers' union, Lapfund and any other scheme we owe money,” Sonko said.

He said they had paid pension funds to Laptrust for three months this year.

“The delay in payment was because the county’s finance officer had been arrested but at the moment we have found new signatories and submitted their names to Central Bank. The money will be processed soon,” Sonko said.

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