Varsity locked in Sh800m pensions row
Technical University's Dean Faculty of Engineering Science and Technology Prof Alex Muumbo (right) with VC Prof Francis Oduol (left) during a past media briefing. FILE PHOTO | ANTHONY OMUYA | NATION MEDIA GROUP
What you need to know:
- Vice-Chancellor Francis Oduol when asked about it said: “It is not my mistake that those remittances have not be honoured. This is a government institution. What can I do if the government has not given me money to pay?”
- Documents seen by the Saturday Nation revealed that the institution allegedly owes Retirement Benefits Authority Sh800 million in unremitted contributions, while Mwalimu National Savings and Credit Co-operative Society is owed Sh83 million.
A row is simmering at the Technical University of Kenya over the administration’s failure to remit over Sh800 million to staff’s pension scheme and Sacco despite deductions from workers.
Retirement Benefits Authority and Mwalimu National Savings and Credit Co-operative Society have written letters to the university demanding the cash.
Vice-Chancellor Francis Oduol when asked about it said: “It is not my mistake that those remittances have not be honoured. This is a government institution. What can I do if the government has not given me money to pay?”
He said the university will remit the money once it receives it, but he did not explain what happened to the deductions already made from the workers’ pay.
Documents seen by the Saturday Nation revealed that the institution allegedly owes Retirement Benefits Authority Sh800 million in unremitted contributions, while Mwalimu National Savings and Credit Co-operative Society is owed Sh83 million.
“The outstanding contributions to the scheme are estimated to be over Sh800 million. This mean that the scheme is technically insolvent with a funding level below 20 percent,” read part of a letter signed by retirement’s authority’s chief executive Edward Odundo.
The university’s lecturers’ union has written to the Commissioner of Co-operatives to do something, saying the delicate issue is being handled sluggishly, yet members are getting unfair treatment.
