The Senate has launched an investigation into the collapse of the Technical University of Kenya Staff Retirement Benefits Scheme (TU-K SRBS) following allegations of over a decade of financial mismanagement, leading to losses amounting to KES 5.3 billion.
The Senate Committee on Labour and Social Welfare initiated the probe after affected workers petitioned for intervention. In a session chaired by West Pokot Senator Julius Murgor, University Academic Staff Union (UASU) TU-K Chapter Secretary Fred Sawenja detailed a troubling sequence of events dating back to July 2009.
Sawenja revealed that the university had deducted pension contributions from staff salaries without establishing a registered scheme or governance structures. The scheme was only formally recognized by the Retirement Benefits Authority (RBA) in November 2013, yet concerns over remittances emerged almost immediately.
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By 2014, the union had already complained to the RBA about missing funds. Within a year of the scheme’s registration, remittances had already become a major issue. Over 15 years, TU-K deducted employee contributions but failed to remit both employees’ deductions and the university’s matching contributions to the custodian bank, KCB.
Shockingly, deductions continued even after September 2017, when the RBA sought a court order to wind up the scheme. The university allegedly persisted with the deductions for two months after the High Court formally ordered its liquidation in July 2024.
Former Trustee and Academic Staff Representative Peter Kanyuira highlighted conflicts of interest within the scheme’s board. He explained that while three trustees were elected by staff, the university council appointed three others and irregularly co-opted four more, effectively shifting control away from employees.
In response, Senator Beth Syengo urged the committee to summon all implicated parties, including the scheme administrator (CPF), custodian (KCB), and fund manager (Coop Trust), for further scrutiny.
By Obegi Malack
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