The Senate Select Committee on County Public Investments and Special Funds (CPISFC) is seeking an extension of time for the Multi-Agency Taskforce on pension arrears, as pressure mounts to resolve increasing pension debt owed by county governments that has surpassed 80 billion.
The CPISFC committee held a meeting in Malindi on Saturday, November 29, to evaluate progress made by the Taskforce, which was formed following revelations of significant inconsistencies between pension debt figures reported by counties and those submitted by pension schemes.
Current estimates show that the liabilities have surpassed KSh 80 billion, primarily fueled by accumulated penalties and interest.
The Taskforce was assigned to reconcile and harmonize the exact amounts owed, including the principal amount, accrued interest, and accumulated penalties, ensuring calculations align with the law that established each scheme.
It would also create an appropriate formula and strategy for the payment of the pension liabilities to clear the outstanding debt.
Committee Chairperson and Vihiga Senator Godfrey Osotsi highlighted the importance of a comprehensive and inclusive report before the Senate receives the Taskforce's final recommendations.
"I will be seeking an extension from the House so that you can firm up the report and try to reach out to Nairobi and Mombasa counties, which are yet to meet the Taskforce," Osotsi stated.
The Multi-Agency Taskforce on non-remittance of pension deductions by county government entities was established by the National Treasury to address the crippling debt counties owe to staff pension schemes.
Huge mismatches in the reported debt figures necessitated the establishment of the task force. For instance, in 2023, pension schemes placed the total unremitted amount at over Sh82 billion, while the Council of Governors (CoG) insisted the owed amount was lower, at around Sh40 billion.
The Senate's CPISFC pushed for the task force's establishment after finding that pensioners were languishing in poverty due to the non-remittance, a problem inherited from defunct local authorities and exacerbated by post-devolution county governments.
The task force was initially given 90 days from its gazettement, in November 2024, to submit its report to the Senate, although final reports have often faced delays.
Nairobi and Mombasa remain the biggest defaulters among devolved units, with long-standing pension obligations that have significantly inflated the national pension burden.
The committee wants the Taskforce to finalize a viable payment formula that the National Treasury, the Council of Governors, and the Pension Schemes can agree on.
Lawmakers hope the resulting framework will offer a long-term solution to the historical arrears that have placed the financial security of retired county workers at risk.
