Senate Committee Presses Tuk Over Ksh 4.3 Billion Pension Scandal

SENATE COMMITTEE PRESSES TUK OVER KSH 4.3 BILLION PENSION SCANDAL

Bunge Tower
Thursday, 30 October, 2025

The Senate Committee on Labour and Social Welfare on Thursday held a tense and emotionally charged sitting at Bunge Towers, grilling senior officials from the Technical University of Kenya (TUK), regulators and service providers over the alleged mismanagement of KSh 4.3 billion in the TUK Staff Retirement Benefits Scheme (TUKSRBS).
The meeting, chaired by Senator Julius Murgor (West Pokot), sought clarity on a petition filed by the University Academic Staff Union (UASU) TUK Chapter, representing members whose deductions were allegedly never remitted to their scheme.
Leading the petitioners, Mr. Fred Sawenja, the UASU TUK Chapter Secretary, outlined three prayers before the committee. “The committee should help us identify those officers in the Technical University of Kenya who committed acts or omissions that led to the collapse of the scheme,” Sawenja said. “If found responsible, they should be made to account, and the committee should assist in recovering the funds for members.”
He further urged Parliament to “put in place measures that will save staff retirement benefits schemes within public universities from suffering similar consequences in the future.” His presentation set the tone as senators questioned the competence of university managers and regulators in protecting workers’ savings.
Responding for the university, Prof. Benedict Mutua, the current Vice Chancellor, admitted that TUK faced financial difficulties that affected remittance of deductions. “It is very clear what members were supposed to be given,” Prof. Mutua said. He told senators that an audit had been conducted and Mr. Logette of Longar Advocates appointed by the court as the scheme’s liquidator in July 2024.
“The liquidator has given a clear roadmap on how much each person is supposed to be paid,” he said. “We can’t say money was stolen because the records are very clear.” His comments, however, drew sharp questions from senators who accused the university of hiding behind technicalities.
Sen Stewart Madzayo (Kilifi) pressed the Vice Chancellor to explain how the university would clear the unremitted deductions. “The liquidator is liquidating the benefit scheme,” he said. “But central to this petition are the unremitted deductions from employee salaries. What plans does the university have to ensure these funds are made available to the scheme?”
Prof. Mutua said the university was working with the Ministry of Education to determine and pay all outstanding dues, including interest. “There are plans in place to ensure these monies are paid once the final audit is confirmed,” he explained. “The payments will include all penalties and interest, not just the principal amount.”
Sen Madzayo, however, expressed dissatisfaction. “We are talking about people who spent their youth working for this country and now face economic death at their doorstep,” he said. “We must ensure their interests are protected.”
Sen Joe Nyutu (Murang’a) also challenged the Vice Chancellor’s claim that no money was lost. “This money is considered lost,” he said. “We are talking about retired workers who are owed billions. We need to hear directly from the liquidator whether the funds are truly recoverable.”
Prof. Mutua maintained that members should not lose hope, assuring that all computation data and member statements were available to guide the payout process once the liquidation concluded.
Representing the Retirement Benefits Authority (RBA), Mr. Charles Machira, the Chief Executive Officer, painted a grim picture of the scheme’s financial state. He said the fund had 1,850 members—1,299 active and 551 deferred or retired. “The scheme today has assets worth KSh 775 million,” Machira told the committee. “However, the outstanding contributions that the university should have remitted amount to approximately KSh 4.3 billion.”
He disclosed that RBA discovered as early as 2013 that employee deductions were being deposited into a KCB Bank savings account that was later used by the university to fund operations. A report from former service provider Alexander Forbes (now Zamara) revealed that only KSh 9.5 million remained in the account out of an expected KSh 220 million.
“This was an illegality,” Machira said, explaining that RBA placed the scheme under internal administration through Octagon Pension Services in 2017 and later petitioned the High Court to wind it up. “The more the scheme remained open, the more members were losing their savings,” he noted. “Considering the size of unremitted contributions, liquidation was the only way to protect members.”
Former Vice Chancellor Prof. Francis Aduol, now serving as a Commissioner at the Independent Electoral and Boundaries Commission (IEBC), defended his tenure, saying the university’s financial crisis was beyond his control. “The position being presented by RBA, that the university willfully refused to remit money, is not true,” he said. “The funds from government were insufficient to pay salaries, taxes and pensions simultaneously. We had to prioritize keeping the university running.”
He insisted that “no money was stolen” and urged the Senate to engage the Ministry of Education and National Treasury, arguing that public universities face chronic underfunding. Sen Nyutu, however, dismissed the explanation. “You cannot defend using employees’ retirement savings to run the university,” he said. “That is a breach of fiduciary duty and public trust.”
After hours of questioning, Chairperson Sen Murgor summarized the committee’s findings, noting that “negligence, weak oversight, and misuse of employee contributions” led to the collapse. “This committee will not accept delegated testimony from junior officers,” he warned. “We want the CEOs themselves to explain where the money went.”
He directed that the chief executives of CPF Financial Services, KCB Bank and Octagon Pension Services appear personally before the committee on 21 November 2025, warning that failure to do so would attract sanctions under the Parliamentary Powers and Privileges Act.
In closing, Sen Murgor reaffirmed the committee’s commitment to justice. “This committee stands with the workers whose savings disappeared,” he declared. “We will pursue the truth until every cent is recovered and those responsible are brought to account.”