Waiguru Evades Interrogation Amid Mounting Pressure to Explain Ksh 65.7B Fund Allocation
Anne Waiguru, chairperson of the Council of Governors (CoG) and governor of Kirinyaga. Did not appear before a senate committee seeking clarification on a Ksh65.7 billion pension fund on Tuesday, June 6.
Godfrey Osotsi, senator for Vihiga, chaired the Senate Committee on County Public Investments and Special Funds, which summoned Waiguru.
According to the committee. The CoG chairwoman failed to provide timely notice of her absence, prompting senators to postpone the meeting.
Treasury Cabinet Secretary Njuguna Ndung’u and Budget Controller Nancy Gathungu. Also disregarded the Senate’s summons to shed light on the finances.
Members of the committee argued that money had been deducted from the paychecks of employees from various counties. But the funds had not yet been distributed.
Kirinyaga County of Waiguru was also accused of failing to transfer funds to the Local Authorities Pensions Trust and the Local Authorities Provident Fund. However, similar circumstances were observed in numerous counties, with Nairobi reportedly incurring the largest debt.
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They argued that the national and county governments placed retirees in a precarious position, forcing them to seek alternative means of subsistence.
The secretary general of the Kenya County Government Workers Union (KCGWU), Ali Roba, urged the committee to resolve the crisis on May 29.
Roba argued that pension debts accumulated as a result of the beginning of devolution and insufficient regulation and enforcement.
He proposed that the National Treasury be granted the authority to distribute funds directly to pension schemes and enforce the remittance of statutory deductions through the Office of the Controller of the Budget.
Roba advocated for a revision of the County Governments Act to hold officials accountable for the non-remittance of pension funds.
“The workers’ savings could be lost if the issue is not resolved immediately,” he lamented.
In November 2022, President William Ruto mandated that all public institutions implement frameworks to ensure that all outstanding pension liabilities are settled in full within two years.
He bemoaned the fact that institutions were collecting funds from contributors but not remitting them to pension schemes or SACCOs.
“I want the government and pension entities to agree on a timetable for payment completion within two years. This is because I will not continue to lead our nation down the path of debt as president.
“This is an effort to reduce government borrowing,” Ruto stated at the Pension Sector Stakeholders Convention.
Waiguru Evades Interrogation Amid Mounting Pressure to Explain Ksh 65.7B Fund Allocation
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