Senators are calling for extra time for a joint team handling county pension arrears, saying the work of confirming the true size of the debt and agreeing on how it will be paid cannot be finished without a full set of records from all counties.
The request comes after the Senate Select Committee on County Public Investments and Special Funds reviewed the taskforce’s progress and found that the figures supplied so far still show major gaps.
The taskforce was set up after lawmakers raised alarm over sharp differences between the pension debt amounts declared by county governments and those presented by the pension schemes.
These mismatched records, together with years of accumulated penalties and interest, have pushed the total arrears to more than Sh80 billion.
The team was therefore assigned to match all numbers, verify the main sums owed and the added charges, and design a clear method for paying the money.
During the weekend session with the taskforce, Committee Chairperson and Vihiga Senator Godfrey Osotsi stressed the need for a complete account from every devolved unit. He said this would allow the team to produce a final report that covers all counties, especially those with the heaviest backlogs.
“I will be seeking an extension from the house (Senate) so that you can firm up the report and include/ try to reach out to Nairobi and Mombasa Counties, which are yet to meet the task force,” Osotsi said.
Nairobi and Mombasa have been flagged before as the ones with the highest unpaid pension deductions, and their absence from the initial meetings has delayed the completion of the report.
Pension schemes have placed the total outstanding amount at Sh85.05 billion. This includes Sh48.79 billion owed to Lapfund, Sh32.35 billion owed to Laptrust and Sh3.91 billion owed to CPF.
The Senate committee now wants the taskforce to reach a joint payment plan that brings together the National Treasury, the Council of Governors and the pension schemes.
The goal is to create a long-term solution that counties can use to clear the arrears without further delays or more penalties.
Lawmakers noted that retired county workers continue to face uncertainty because of the slow settlement of these deductions.
They said a confirmed and agreed plan will help secure the future of workers who served in county governments and also prevent the debts from rising any further.
With the request for more time now before the Senate, the committee expects the taskforce to complete the final stages of data collection, reconcile the conflicting amounts and present the formula that all sides can adopt for paying the long-standing arrears.
