- The Senate Labour and Social Welfare Committee has demanded a time-bound roadmap from the National Treasury and Ministry of Education to settle TUK’s pension arrears.
- The Ministry of Education has prepared a KSh2.073 billion supplementary budget proposal to begin clearing the pension deficit, to be followed by annual allocations of about KSh1 billion.
- Treasury CS John Mbadi has expressed support for resolving the crisis but has declined to commit to a specific timeline for clearing the arrears.
The Senate Labour and Social Welfare Committee has put the National Treasury and the Ministry of Education (MoE) on the spot, demanding a clear and time-bound roadmap to settle billions of shillings in pension arrears owed to current and former employees of the Technical University of Kenya (TUK).
During a committee session at Bunge Towers on Thursday, senators expressed concern over the prolonged delay in compensating retirees, warning that many pensioners had died while waiting for their benefits.
The committee, chaired by Senator Julius Murgor, heard that the TUK Staff Retirement Benefits Scheme collapsed after years of inadequate government funding, failure to remit pension deductions and financial mismanagement. As a result, the scheme’s assets can only meet about 13 per cent of members’ accrued pension benefits.
Vice Chairperson Senator Crystal Asige challenged National Treasury Cabinet Secretary John Mbadi to prioritise resolving the pension crisis before pursuing broader pension reforms.
She argued that the government must first address the plight of affected retirees and sought a definitive plan for settling the outstanding liabilities.
Senator Miraj Abdullahi faulted the government for failing to release sufficient Exchequer funds to enable the university to remit pension deductions, saying the lapse violated workers’ constitutional rights to fair labour practices and social protection. She also pressed the Ministry of Education to honour the Return-to-Work Formula agreed upon with university staff.
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Education Cabinet Secretary Julius Migos told the committee that the ministry had prepared a funding proposal requiring KSh2.073 billion through a supplementary budget, followed by annual allocations of about KSh1 billion to gradually eliminate the pension deficit.
He said the proposal had previously been submitted to the National Treasury but was not funded due to budgetary constraints. With the verification of pension liabilities now complete, the ministry will resubmit the proposal using updated figures from the court-appointed liquidator.
Treasury CS John Mbadi expressed support for resolving the crisis and confirmed that his ministry would back the establishment of a new retirement benefits scheme for current TUK employees.
However, Mbadi declined to commit to a specific timeline for clearing the pension arrears, maintaining that any financial intervention must be accommodated within the national budget and approved by Parliament.
His response drew criticism from senators, with Asige insisting that Treasury bears responsibility for initiating government spending priorities through the Budget Policy Statement before Parliament considers allocations.
The committee also heard that TUK’s pension crisis dates back to the institution’s transition from Kenya Polytechnic to a university college in 2007.
Officials from the Ministry of Education said years of inadequate government funding and failure to remit pension deductions had created a structural deficit estimated at nearly KSh13 billion.
According to the court-appointed liquidator, verified pension liabilities stand at approximately KSh6.8 billion, against assets worth only KSh907 million, leaving the retirement scheme just 13 per cent funded.
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Representing affected workers, Fred Sawenja urged senators to ensure the government’s commitments are backed by actual funding, saying many retirees and their dependants continue to suffer as they wait for long-overdue benefits.
The committee resolved that the Ministry of Education should urgently resubmit its funding proposal based on the verified pension figures, while the National Treasury pledged to support the request during the next budget cycle.
Despite the assurance, senators maintained that retirees deserve more than promises, urging the government to move swiftly and translate its commitments into payments for workers who have waited years for their rightful pension benefits.
By Godfrey Wamalwa
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