A Senate committee has turned down the National Treasury's request to give a county pension task force an extra four months, saying the team has already carried out the work it was created to do and that the remaining issues should now be handled through the Senate.
The Senate Committee on County Public Investments and Special Funds reached the decision during a meeting with Treasury Cabinet Secretary John Mbadi and officials from the ministry. The session focused on reviewing the task force's report, examining pending consultations and discussing proposals aimed at resolving billions of shillings in pension arrears accumulated by county governments.
Documents presented to the committee showed that county pension obligations have continued to grow over the years. The Treasury said the liabilities rose from Sh21.3 billion inherited from the former local authorities before the start of devolution to Sh115.7 billion as at October 31, 2024.
County executives account for the largest portion of the unpaid amount at Sh103.2 billion. Water service providers owe Sh9.3 billion, while county assemblies account for the remaining Sh3.2 billion.
The committee heard that efforts to verify the figures had faced delays despite repeated requests to county governments. By June 18, 2026, only 10 county executives and nine county assemblies had confirmed the amounts they owed.
Members were also told that Nairobi Governor Johnson Sakaja appeared before the task force on April 8, 2025, where he committed to consult his technical officers before responding, but no further communication was received. Mombasa Governor Abdulswamad Nassir did not attend a scheduled meeting despite receiving an official invitation and several follow-up calls.
Vice Chairperson Senator Eddy Oketch said extending the task force any further would not solve the problem since every county had already been given an opportunity to participate.
“The task force completed the assignment contained in the legal notice and gave every county an opportunity to participate. We cannot continue extending its mandate because some governors failed to respond. The Senate can now take up the outstanding matters directly,” said Sen. Oketch.
Among the recommendations contained in the report is a proposal to make pension deductions the first charge on county revenue so that the money is remitted automatically when salaries are processed. The task force also proposed debt settlement agreements, electronic verification through HRIS and IFMIS, and stricter action against accounting officers who fail to remit pension deductions.
Senator George Mbugua said counties have no justification for holding workers' pension deductions after they have already been deducted from employees' salaries.
“Pension deductions belong to workers. Once the money is deducted from an employee’s salary, it must be remitted to the pension scheme immediately. Keeping it exposes workers to uncertainty and undermines their retirement security,” said Sen. Mbugua.
CS Mbadi told the committee that although the Treasury had requested more time to complete consultations and verify outstanding liabilities, he agreed that task forces should not continue operating indefinitely.
“The task force submitted its report, but some critical engagements, particularly with Nairobi and Mombasa, remained inconclusive. Nevertheless, task forces cannot exist in perpetuity, and the Treasury will provide the Committee with the report and all supporting correspondence within the agreed period,” said CS Mbadi.
The committee directed the Treasury to submit the task force report again together with all correspondence exchanged with county governments, pension schemes and other stakeholders within 14 days. It also asked the ministry to present the proposed debt-settlement agreement once it receives legal clearance from the Attorney-General. Before completing its report to the Senate, the committee will also invite Nairobi and Mombasa county governments to respond to the outstanding issues.