, NAIROBI, Kenya, Oct 13 – According to Local Authorities Pension Trust, Nairobi County is leading in debt by Sh18.6 billion whose blame has been placed on the previous government.
Speaking during the Annual General Meeting for the Local Authorities Pension Trust and two other Pension Schemes on Friday, the group Managing Director Hosea Kili called upon the county governments to clear the overwhelming debts and remit pension money for their employees so as to have smooth operations.
“The major challenges we are having is the issue of liabilities by the previous local authorities which have now been inherited by the county governments; I call upon all the county governments to make their remittances so that we can deal with these liabilities once and for all,” said Kili.
Kili said the situation is worrying because the debt owed has ballooned from Sh6.2 billion in 2014 when county governments came into office to Sh18.6 billion as at December 30.
However kili said that there was some progress made in reduction of historical and current unremitted contributions especially with the three largest sponsors to the scheme – Mombasa County Government, Nairobi Water and Sewerage Company and Nairobi County Government.
“It is anticipated that this trend will continue and therefore bring the issue of huge outstanding debts to a proper conclusion in the medium term, with the aim of reducing the current outstanding debt by 80 per cent in the year 2017,” said Kili.
Nairobi Senator Johnson Sakaja who was present at the meeting said the County Government of Nairobi is committed to the welfare of their employees and assured that the dues will be paid.
“We are really encouraging the pension funds that take care of our county government workers to keep raising standards of accountability and serving the people who have retired in different counties; we have heard the issues of debts owed to them by county governments and I want to assure that us in the Senate we will make sure that those have been phased out and that county governments become strict in enforcing all the deductions that are statutory every month,” said Sakaja.
Sakaja also said that he will table bills in Senate so there are clear guidelines to ensure remittance for county employees are done in accordance with the law to avoid heavy debts in future.