Senate Probes Missing KSh 5.3b at TU-K's Staff Retirement Pension Scheme
- The Technical University of Kenya Staff Retirement Benefits Scheme (TU-K SRBS) reportedly lost KSh 5.3 billion
- Fred Sawenja, the secretary of the University Academic Staff Union (UASU) TUK Chapter, revealed a concerning series of incidents that began in July 2009
- Senator Beth Syengo asked the committee to invite all parties involved, including the scheme administrator (CPF), custodian (KCB), and fund manager (Coop Trust), for further scrutiny
Japhet Ruto, a journalist with TUKO.co.ke, brings over eight years of expertise in the fields of finance, business, and technology, delivering detailed insights into economic developments both in Kenya and globally.
Kenya's Senate Committee on Labour and Social Welfare is investigating the collapse of the Technical University of Kenya Staff Retirement Benefits Scheme (TU-K SRBS).
Source: UGC
How TU-K SRBS funds disappeared
This followed a petition by impacted employees who claimed financial mismanagement spanning more than 10 years and losses totaling KSh 5.3 billion.
During a session chaired by West Pokoto senator Julius Murgor, Fred Sawenja, the secretary of the University Academic Staff Union (UASU) TUK Chapter, revealed a concerning series of incidents that began in July 2009.
In a statement shared by Parliament, Sawenja disclosed that the public institution began deductions from employees without legal and governance frameworks.
The Retirement Benefits Authority (RBA) formally recognised TU-K SRBS in November 2013, but concerns arose.
"The union had already lodged a complaint regarding unaccounted for funds with the RBA by 2014." Remittances had already become a problem within a year of the scheme's establishment, Sawenja bemoaned.
Source: Facebook
How long did TUK employees contribute to the scheme?
The committee was informed that TUK deducted contributions from employees for 15 years, but failed to remit them to Kenya Commercial Bank, the custodian financial institution.
Even worse, after the RBA requested a court order to wind up the fund in September 2017, the High Court formally ordered its liquidation in July 2024, but deductions persisted for two months.
Sawenja said that former vice-chancellor Francis Aduol, university financial manager Ben Sanda, and council legal officer Ruth Kirwa were among the suspects in the scam.
What senators said about TUK benefits scheme
Murgor, however, questioned why the Board of Trustees of the programme did not defend the rights of the workers.
Senator Beth Syengo asked the committee to invite all parties involved, including the scheme administrator (CPF), custodian (KCB), and fund manager (Coop Trust), for further scrutiny.
Peter Kanyuira, a former trustee and academic staff representative, brought attention to a conflict of interest on the board by stating that, although three trustees were chosen by the staff, the university council appointed three more and improperly co-opted four more, thereby removing employees from control.
Senator Miraj Abdullahi voiced support for the petitioners and urged Francis Atwoli, the secretary-general of the Central Organisation of Trade Unions (COTU), to explain why the national trade union body had not stepped in.
"These workers have been abandoned in their old age, despite having served this country in their youth. The trade union leader must explain to us why he is not standing up for their rights, Miraj stated.
How much was lost in the KUSCCO scandal?
In related news, KUSCCO executives were accused of bookkeeping fraud, rampant executive embezzlement, bribery, suspicious bank withdrawals, and conflicts of interest.
They allegedly fabricated financial statements to demonstrate fictitious profits to conceal the schemes.
The SACCO umbrella became insolvent after KSh 13.3 billion was lost. This jeopardized the KSh 24.8 billion that 247 SACCOs had deposited.
Proofreading by Asher Omondi, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
