The Kenya County Government Workers Union (KCGWU) has raised concerns over the failure by county governments to remit workers’ pension contributions, accusing them of withholding over 40 billion shillings meant for the Local Authorities Provident Fund (LAPFUND).
Speaking in Kisumu County during the 14th LAPFUND Annual General Meeting (AGM), KCGWU National Secretary General Roba Duba revealed that some of the pension arrears date back more than two decades.
He said it was unacceptable and illegal for county governments to deduct pension contributions from workers’ salaries but fail to remit the funds as required by law. “This money is supposed to be remitted to LAPFUND to support the scheme’s operations and guarantee growth for the benefit of the members. It is unlawful for county governments to withhold employees’ funds or divert them to other uses,” he said.
Treasury and National Planning Cabinet Secretary John Mbadi, who was the chief guest at the AGM, acknowledged the seriousness of the matter and announced that a task force formed by his office to investigate pending pension remittances across all schemes had completed its report.
“It is illegal and unconstitutional to withhold workers’ money. Unfortunately, county governments have been the most notorious in this regard. My office is taking this matter very seriously, and we are committed to taking firm action,” he said.
Mbadi further urged the county government workers to remain calm, noting that his ministry would soon convene a meeting with union officials to discuss the Collective Bargaining Agreement (CBA), which the workers claim has not been updated since 2012.
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