County workers are staring at a bleak future in retirement after revelations the devolved units owe pension firms more than Sh80 billion.
The Senate Public Investments and Special Funds Committee has revealed the amounts after months of inquiry into the matter.
“We have handled an inquiry into the matter of no remittance of pension deduction by counties, where the counties owe pension funds in excess of Sh80 billion as a result of non-remittance of pension funds,” panel chairman Godfrey Osotsi said in a report to the House.
The committee arrived at the figure after meeting the National Treasury, the Kenya Revenue Authority (KRA), the Controller of Budget (CoB) and the National Social Security Fund (NSSF).
The panel also met Retirement Benefits Authority (RBA) and the two-pension funds-Local Authorities Provident Fund (Lapfund) and Local Authorities Provident Trust (Laptrust).
The counties, county government workers’ union, pension firms and the National Treasury have been giving contradicting figures on the amounts owed to pension firms.
The schemes are Lapfund, Laptrust and County Pension Fund (CPF).
In March, the Treasury had revealed that the counties owed the schemes in excess of Sh65.70 billion.
The Nairobi government has about 13,000 employees, with a good number hitting retirement age every year.
Several attempts to clear the debt, including a debt swap, have failed.
Garissa county owes pension schemes the third highest amount.
The report shows that the Nathif Jama-led government is yet to pay the pension schemes Sh1.83 billion.
The debt includes Sh1.62 billion owed to Lapfund, Sh194.10 million owed to CFP and Sh18.15 million that is yet to be remitted to Laptrust.
The funds are deducted from staff salaries but are not remitted to the pension schemes.
According to the report, the counties owe the Laptrust Sh31.1 billion.
CPF is owed Sh2.59 billion while Lapfund has yet to receive Sh31.37 billion as of January 30, 2023.
“Most of the county governments owe money to the various pension funds. However, county governments are not reflecting these pension liabilities in their pending bills stock,” the report states.
According to Treasury, only three counties have cleared their pension arrears and penalties. They are Kajiado, West Pokot and Nyeri.
Some eight counties have made partial payments.
They include Nyamira, Kakamega, Tana River, Bungoma, Kitui, Makueni, Uasin Gishu and Lamu.
The remaining 36 counties are yet to remit their pension contributions to the schemes.
They are Baringo, Bomet, Turkana, Busia, Elgeyo Marakwet, Embu, Garissa, Homa Bay, Isiolo, Taita Taveta, Tharaka Nithi, Kericho, Kiambu, Kilifi, Kirinyaga, Samburu and Narok.
Others are Kisii, Kisumu, Vihiga, Kwale, Laikipia, Trans Nzoia, Machakos, Wajir, Mandera, Marsabit, Meru, Migori, Mombasa, Murang'a, Nairobi, Nakuru, Nandi, Nyandarua and Siaya.
However, making a presentation before the committee on Monday, Controller of Budget Margaret Nyakang'o said the counties disclosed pending pensions of Sh11 billion but the firms declared Sh85 billion.