The Technical University of Kenya (TUK) staff are staring at a worrying retirement as an in-depth review of employee records spanning over ten years revealed consistent underpayment of contributions, primarily by the university and a shortfall of Ksh6.2 billion.
During a session on Tuesday that brought together TUK management, the Retirement Benefits Authority (RBA), petitioners, and the former vice-chancellor; liquidator Long’et Terer of Long’et and Mumo LLP detailed the financial state of the fund; noting that estimated Ksh2.8 billion in unpaid contributions, plus Ksh3.4 billion in interest, bringing the total amount owed to Ksh6.2 billion.
The Senate Committee on Labour and Social Welfare was informed that the pension fund of the Technical University of Kenya’s staff remains deeply underfunded, with only 13 per cent of the total liabilities covered.
The Terer’s team further clarified that at liquidation in 2024, the scheme’s net assets stood at Ksh4.3 billion, but just Ksh590 million was immediately available for member payments. While assets have since increased to Ksh858 million, the shortfall remains substantial.
“Members would only be able to access up to 13 per cent,” he said, noting that recovery from the employer is essential for improved payouts.
The Ministry of Education, represented by Principal Secretary for Higher Education Dr. Beatrice Inyangala, explained that the crisis partly stems from long-term funding gaps in public universities, particularly following the conversion of polytechnics like TUK into universities.
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“There was a deficit of Ksh13 billion when it was converted to a university,” she said, noting that these funding pressures made it difficult for institutions to meet legal obligations.
PS Inyangala said the government has attempted to stabilise the fund through partial payments and payroll support but admitted the measures are not enough.
“The Ministry takes responsibility for the funds that were not dispersed to the university. However, once the funds are dispersed, it is the responsibility of the council and management to prioritise their expenditures.”
Senators rejected the explanation, insisting that financial constraints do not justify neglecting pension contributions. “Are you telling universities that where there is underfunding, they can sacrifice even the pension deductions?” asked Sen Joe Nyutu of Murang’a.
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The hearing also highlighted contentious issues regarding Sh39.6 million deposited into a pre-registration account between 2009 and 2013 and later withdrawn.
Former vice-chancellor Prof Francis Aduol said the funds were used to cover operational costs during financial strain, but Terer confirmed the money never reached the pension fund.
Senators called for potential criminal investigations into the mismanagement of pension contributions.
“You have identified a criminal activity somewhere—did you invite the DCI or DPP to commence investigations?” Sen Okongo Mogeni of Nyamira asked the RBA.
Members of the Senate Committee on Labour and Social Welfare warned that without urgent recovery of outstanding contributions, hundreds of current and former employees risk receiving only a small fraction of what they are owed.
By Juma Ndigo
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