NAIROBI, Kenya, Sept 15 – The Senate Committee on County Public Investments and Special Funds has ordered Nairobi and Mombasa counties to submit plans for settling their outstanding pension debts after meeting the two governors on Tuesday.
The Committee, chaired by Taita Taveta Senator Johnes Mwaruma, separately met Nairobi Governor Johnson Sakaja in the morning and Mombasa Governor Abdullswamad Sheriff Nassir in the afternoon to establish the status of their pension liabilities.
The Senate intervened after Nairobi and Mombasa failed to complete the submission and validation of their pension debts to the National Treasury-led pension task force.
Nairobi told the Committee it had accumulated no new pension debt since 2022 and had paid Sh6.658 billion over the past four years.
However, LAPTRUST is claiming about Sh39 billion from the county, comprising Sh6.7 billion in principal, Sh30 billion in penalties and Sh1.2 billion in actuarial deficit. LAPFUND has a further claim of about Sh6.3 billion.
“These are workers’ retirement benefits. What we require now are verified figures showing the principal, penalties and other charges, followed by a realistic settlement plan,” Mwaruma said.
Sakaja said Nairobi was disputing the extent to which penalties and actuarial charges had increased its historical pension liabilities.
“We have remained current since 2022 and have paid KSh6.658 billion. What requires resolution is how the historical principal has grown through penalties and other charges while ensuring pensioners receive what is due to them,” Sakaja said.
Mombasa reported total pension liabilities of Sh1.213 billion, including Sh697.28 million inherited from the former municipal authority.
The county has paid Sh216.66 million to LAPFUND and Sh26.37 million to LAPTRUST in recent years.
Nassir said the inherited debt continues to weigh on the county despite efforts to reduce it.
“We have been paying these obligations, but the inherited debt remains significant. Our focus is to find a sustainable settlement arrangement that reduces the liability without compromising essential county services,” Nassir said.
The Committee directed Nairobi to submit a comprehensive pension debt strategy.
Mombasa was given seven days to provide an aged breakdown of its liabilities, separating principal, interest and penalties, alongside details of its proposed securitisation arrangement and related correspondence.
