A heated session unfolded at Bunge Towers on Thursday as the Senate Committee on Labour and Social Welfare probed senior officials from the Technical University of Kenya (TUK), regulators, and service providers over alleged mismanagement of Sh4.3 billion in the university’s staff retirement fund.
The inquiry focused on claims that employee deductions were not properly remitted to the TUK Staff Retirement Benefits Scheme (TUKSRBS).
The sitting, chaired by Senator Julius Murgor (West Pokot), examined a petition filed by the University Academic Staff Union (UASU) TUK Chapter, representing workers whose contributions were reportedly never transferred to the pension scheme.
UASU TUK Chapter Secretary Fred Sawenja presented the union’s concerns clearly.
“The committee should help us identify those officers in the Technical University of Kenya who committed acts or omissions that led to the collapse of the scheme,” he said.
“If found responsible, they should be made to account, and the committee should assist in recovering the funds for members.”
He also called for Parliament to implement safeguards to prevent similar problems in other public universities.
Prof. Benedict Mutua, the current TUK Vice Chancellor, acknowledged the university had financial challenges affecting deduction remittances.
“It is very clear what members were supposed to be given,” he said, noting that an audit had been conducted and Logette of Longar Advocates was appointed as the scheme’s liquidator in July 2024.
“The liquidator has given a clear roadmap on how much each person is supposed to be paid. We can’t say money was stolen because the records are very clear.”
Senator Stewart Madzayo (Kilifi) pressed the Vice Chancellor to clarify plans for recovering unremitted contributions. “The liquidator is liquidating the benefit scheme,” he said. “But central to this petition are the unremitted deductions from employee salaries. What plans does the university have to ensure these funds are made available to the scheme?”
Prof. Mutua assured that the university was coordinating with the Ministry of Education to pay all outstanding amounts, including interest. “There are plans in place to ensure these monies are paid once the final audit is confirmed,” he explained.
“The payments will include all penalties and interest, not just the principal amount.”
Senator Madzayo expressed concern for retirees who rely on these funds. “We are talking about people who spent their youth working for this country and now face economic death at their doorstep,” he said. “We must ensure their interests are protected.”
RBA CEO Charles Machira provided a detailed account of the scheme’s status. With 1,850 members, only Sh 775 million in assets existed against Sh4.3 billion in unpaid contributions. He said deductions were deposited into a KCB Bank account but later diverted to university operations.
“This was an illegality,” Machira noted, explaining that the RBA placed the scheme under internal administration in 2017 before petitioning the High Court for liquidation.
Former Vice Chancellor Prof. Francis Aduol defended his tenure, saying government funding was insufficient to cover salaries, taxes, and pensions simultaneously.
“The funds from government were insufficient to pay salaries, taxes and pensions simultaneously. We had to prioritize keeping the university running,” he said, insisting that no funds were stolen.
Senator Joe Nyutu (Murang’a) rejected this explanation. “You cannot defend using employees’ retirement savings to run the university,” he said. “That is a breach of fiduciary duty and public trust.”
Senator Murgor concluded the hearing, citing negligence, weak oversight, and misuse of employee contributions as key factors in the scheme’s collapse.
He directed CEOs of CPF Financial Services, KCB Bank, and Octagon Pension Services to appear personally on 21 November 2025, warning of sanctions under the Parliamentary Powers and Privileges Act.
“This committee stands with the workers whose savings disappeared,” Sen. Murgor stated. “We will pursue the truth until every cent is recovered and those responsible are held accountable.”
