The Senate's Committee on County Public Investments and Special Funds has instructed Laikipia County to establish specific deadlines for clearing Ksh49.8 million in staff pension deductions that remain unremitted. This directive was issued during a meeting on October 1 with Governor Joshua Irungu and county officials. The committee reviewed progress on implementing resolutions from an earlier audit of the 2024/25 financial year.
The unremitted deductions relate to employees of two county-owned water utilities – Nanyuki Water and Sewerage Company (Ksh25.65 million) and Nyahururu Water and Sewerage Company (Ksh24.14 million). These companies deducted contributions from staff but failed to forward them to the pension schemes. Senator George Mbugua warned that continued delays could jeopardize retirees' benefits and attract penalties, emphasizing that once money is deducted, it no longer belongs to the employer.
Committee vice-chair Senator Beth Syengo called for proof of action and concrete dates for the settlement of the outstanding amounts. The Senate committee's directive aims to ensure that the county takes immediate action to address the issue. Governor Irungu attributed the delayed remittance to financial strains at the water firms, citing unpaid bills from government bodies, including security agencies.
The governor requested more time until the end of the fiscal year to resolve the issue. However, Senator Mbugua and other committee members stressed the urgency of the matter. The issue of unremitted statutory deductions is a broader problem, with the Controller of Budget reporting Ksh115.57 billion of such deductions by the national government as of March.
During the session, Senator John Kinyua raised concerns over differing water tariffs in the county. Nyahururu residents pay Ksh120 per cubic meter, while Nanyuki residents pay Ksh68 per cubic meter. Governor Irungu explained that the disparity is due to higher electricity costs for the Nyahururu provider.
The committee also sought clarification on a Ksh6.3 million shortfall in customer deposits. The county indicated that an escrow account now receives daily deposits to replenish the balance. This move aims to address the shortfall and ensure that customer deposits are properly managed.
The Senate committee's directive has put pressure on Laikipia County to resolve the issue of unremitted pension deductions. The county must now provide a clear plan and timeline for paying the outstanding amounts. Failure to comply could result in further action from the Senate and potential penalties.
Key points
- Laikipia County must provide clear dates for paying Ksh49.8 million in unremitted pension deductions to staff of county-owned water utilities.
- The county-owned water utilities, Nanyuki Water and Sewerage Company and Nyahururu Water and Sewerage Company, deducted contributions but failed to forward them to the pension schemes.
- The issue of unremitted statutory deductions is a broader problem in Kenya, with Ksh115.57 billion of such deductions reported by the national government as of March.
