Former and current employees of the Technical University of Kenya (TUK) are set to receive their first retirement benefit payments this week, with the liquidator of the collapsed pension scheme committing to begin disbursing available funds on Friday.
The commitment follows growing frustration among 1,820 affected members over delayed benefit statements and repeated missed deadlines, which had threatened to trigger fresh protests against those managing the scheme.
CPF Financial Services promised to begin issuing updated individual statements on Wednesday, October 14, paving the way for payments scheduled to start on October 16. The statements are expected to show members' contributions, the employer's share and accrued interest, helping beneficiaries establish their entitlements before distribution begins.
CPF Director of Operations and Marketing George Okioma apologised for the delay, acknowledging that an earlier commitment to release the statements by September 28 had not been met.
The development follows consultations involving the liquidator, CPF representatives and officials from the Universities Academic Staff Union (UASU) and the Kenya Universities Staff Union (KUSU), whose members have been demanding the release of their savings.
Insolvency practitioner Long'et Terer, who is overseeing the liquidation, said the disbursement would proceed as the team continues converting the scheme's investments into cash. The available funds are held in bank deposits, shares listed on the Nairobi Securities Exchange and government bonds, and the liquidator has directed the fund manager to seek favourable prices when disposing of the assets to avoid unnecessary losses.
However, the planned payments represent only a fraction of the scheme's outstanding obligations. According to information presented during earlier consultations, the scheme had a reported value of Sh7.3 billion, while the amount available for distribution was Sh906.6 million.
Members were informed that the available funds would cover about 12.38 per cent of their claims. The university has also been reported to owe the scheme billions of shillings in outstanding employer contributions and accrued interest, with efforts to recover the money forming a crucial part of the liquidation process.
Under the proposed payment arrangement, members aged 50 and above are eligible to receive their full allocated benefits, while those below 50 will generally receive 50 per cent, subject to applicable exceptions and the scheme's rules. Members have rejected proposals to prioritise particular groups, agreeing that beneficiaries should be treated equally during distribution.
The collapse of the scheme has left some former employees waiting years to access money intended to support them after leaving employment, with others raising concerns over the financial difficulties caused by the prolonged delays. Members had threatened to camp outside CPF offices to demand their statements and payments after the earlier deadlines passed without delivery.
KUSU TUK branch secretary Patrick Ogutu said beneficiaries wanted action rather than further meetings, insisting that they had waited long enough for their money. UASU TUK chapter secretary Fred Sawenja warned that failure to honour the latest commitment could trigger renewed industrial action.
The latest commitment offers some relief, but its effectiveness will depend on whether payments begin as promised and whether the liquidator can recover the outstanding funds needed to address the wider pension shortfall.
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