The Senate Committee on Labour and Social Welfare has heard that the Technical University of Kenya’s (TUK) staff pension scheme is only 13% funded, exposing hundreds of current and retired employees to steep losses unless billions in unpaid contributions are recovered.

Presenting findings from the ongoing liquidation at a meeting attended by TUK management, the Retirement Benefits Authority (RBA), petitioners and the former vice-chancellor, the scheme’s liquidator, Long’et Terer—a partner at Long’et and Mumo LLP—told senators that while the fund had KSh 4.3bn in net assets at the point of liquidation in 2024, only KSh 590m was immediately available to meet member benefits. The asset base has since risen to about KSh 858m, but remains far below obligations.

A detailed reconstruction of member records over more than a decade revealed widespread under-remittance of contributions, particularly by the employer. The liquidator’s team calculated KSh 2.8bn in unremitted contributions and KSh 3.4bn in accrued interest, bringing total receivables to about KSh 6.2bn.

The recovery of these funds, senators heard, will be critical to improving payouts, as current assets can only support limited, phased distributions.

“It would then mean that members would only be able to access up to 13%,” Terer said, noting that further payments depend on successful recovery from the sponsor.

The Ministry of Education, led by Principal Secretary for Higher Education Dr Beatrice Inyangala, attributed the crisis partly to long-standing structural underfunding of public universities, particularly following the transition of institutions such as TUK from polytechnics.

“There was a deficit of 13 billion… when it was converted to a university,” Dr Inyangala told the committee, adding that broader funding gaps across the sector had strained universities’ ability to meet statutory obligations.

She said the government had taken steps to stabilise the situation, including partial remittances and payroll support, but acknowledged limitations.

“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, however, pushed back against the explanation, warning that financial pressure could not justify failure to remit pension deductions.

“Are you telling universities that where there is underfunding, they can sacrifice even the deductions for pension?” asked Sen Joe Nyutu (Murang’a).

The session also exposed sharp disagreements over accountability, particularly concerning KSh 39.6m in pension contributions that were deposited into a pre-registration account between 2009 - 2013 and later withdrawn.

Former vice-chancellor Prof Francis Aduol said the funds were absorbed into operations during financial distress, but the liquidator contradicted this, confirming the money never reached the pension scheme.

“So was the money later deposited into the pension scheme account—yes or no?” asked the acting committee chair Sen Miraj Abdullahi.

“No,” the liquidator responded.

Lawmakers called for possible criminal investigations into the handling of pension deductions.

“You have identified a criminal activity somewhere—did you invite the DCI or DPP to commence investigations?” Sen Okongo Mogeni (Nyamira) asked the RBA.

𝐇𝐮𝐦𝐚𝐧 𝐜𝐨𝐬𝐭: 𝐫𝐞𝐭𝐢𝐫𝐞𝐞𝐬 𝐢𝐧 𝐝𝐢𝐬𝐭𝐫𝐞𝐬𝐬

Beyond the financial and legal disputes, the human impact of the crisis dominated the hearing.

Retirees and staff representatives told the committee that pension arrears have gone unpaid for years, leaving many in hardship.

“From 2019 we haven’t got any of our pension… we are over 70 now,” said a long-serving lecturer, Eng Alex Mwangi. “We want this money. Why don’t you pay those who have retired as you wait for the others?”

Petitioners warned that delays are already costing lives.

“Just this week, we lost one of the pensioners… we don’t want to wait any further,” the lead Petitioner, Fred Sawenja remarked.

Senators echoed the concern, framing the issue as one of urgency and dignity.

“There are Kenyans out there who stand at the risk of dying without ever enjoying their pension,” Sen Mogeni said.

𝐏𝐡𝐚𝐬𝐞𝐝 𝐩𝐚𝐲𝐦𝐞𝐧𝐭 𝐩𝐥𝐚𝐧 𝐬𝐩𝐚𝐫𝐤𝐬 𝐨𝐮𝐭𝐫𝐚𝐠𝐞

The government, through the Ministry of Education, has proposed a phased repayment plan to address pension liabilities, including spreading part of the outstanding balance across the 2029/30 and 2030/31 financial years.

The proposal drew sharp criticism from senators, who said the timeline was unacceptable given the age and vulnerability of pensioners.

“Some of those pensioners would be long dead,” Mogeni said. “You are telling somebody to stay hungry for the next four years till 2030.”

Sen Seki Lenku (Kajiado) questioned why the bulk of the payments were not frontloaded in the current and next financial years, and what would bind future administrations to honour the commitments.

The committee insisted that the payment plan be accelerated and backed by firm commitments from both the Ministry of Education and the National Treasury.

For now, the fate of hundreds of pensioners rests on whether the government can move faster than its own timelines. For many already in retirement, the question is no longer how much will be paid—but whether it will come in time.