Close to 2,000 current and former workers of the Technical University of Kenya (TUK) risk losing most of their retirement savings after a Senate committee found their pension scheme holds barely 13 per cent of what it is owed, as the fund heads through liquidation.

A report by the Senate Standing Committee on Labour and Social Welfare, chaired by Senator Julius Murgor and reported by The Star on Wednesday, says the TUK Staff Retirement Benefit Scheme has Sh907.1 million in available assets against outstanding receivables of Sh6.825 billion.

Deducted but not remitted

The shortfall, as of April 30, 2026, is made up of Sh3.043 billion in principal contributions that were never remitted and Sh3.782 billion in accrued interest and penalties. It affects 1,850 members: 1,299 serving employees and 551 deferred pensioners.

The committee blames the collapse mainly on the university's long-running failure, dating back to 2009, to pass on contributions deducted from workers' pay together with the employer's share. It also cites governance failures, including trustees who did not hold an annual general meeting for more than a decade, and says regulators, including the Retirement Benefits Authority, did not enforce compliance early enough.

  • 2015: the deficit hits Sh589 million and the scheme is placed under interim administration
  • 2019: actuaries put obligations at Sh1.178 billion
  • June 2024: liabilities reach Sh4.148 billion
  • July 5, 2024: the High Court orders the scheme wound up

The university has previously told senators that cash-flow problems forced it to prioritise net salaries over statutory deductions, and has blamed its debts on years of underfunding.

How the money will be shared

Under the proposed liquidation plan, 90 per cent of available assets, about Sh816.39 million, will go to verified members in proportion to their entitlements, while about Sh90.71 million is held back to pursue recovery of the debts. Members are therefore likely to receive only a small part of what they are owed in the first payout.

Probes and Treasury action sought

The committee wants the Directorate of Criminal Investigations and the Ethics and Anti-Corruption Commission to investigate former university officials and trustees over alleged unauthorised withdrawals and non-remittance, with a progress report in 90 days, and the prosecutor to act within 120 days. Those named have not been charged with any offence.

It also asks the National Treasury to ring-fence funds for historical pension arrears within 30 days, and the Education ministry and Treasury to budget for the liabilities within a year. The senators said tight university budgets cannot justify using staff pension money to run institutions, and urged that government payroll systems be linked to IFMIS so statutory deductions are remitted automatically.

Photos: The Star. Thumbnail design: HAMASTA MEDIA.