The Senate Committee on Labour and Social Welfare has put the Ministry of Education and the National Treasury under scrutiny over a pension crisis at the Technical University of Kenya (TUK), with unpaid dues now running into billions.
During a session on Thursday, April 23, lawmakers expressed concern that despite progress in verifying pension records, retirees are yet to receive their payments due to delays in the release of government funds.
The committee, chaired by West Pokot Senator Julius Murgor, heard that the verification exercise is almost complete, but financial disbursements have stalled.
Long’et Terer, the liquidator managing the pension scheme, informed senators that most member records had already been cleaned and validated, with a final report expected before the end of the month.
However, legislators insisted that administrative progress means little if retirees continue to go unpaid.
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TUK Vice-Chancellor Benedict Mutua painted a grim picture of the situation, describing how pensioners frequently gather outside his office seeking answers, with some reportedly suffering stress-related health complications.
"We are looking to this honourable committee to help the university get the funds," he said, adding that several retirees’ blood pressure had risen dangerously high while queuing at his office following up on their pensions.
Mutua told the committee that the university had already met its obligations and is now waiting for the government to honour commitments made in a return-to-work agreement signed on March 17, 2025.
The deal required the state to release an initial Ksh500 million to the pension scheme.
UASU-TUK Chapter Secretary Fred Sawenja, who appeared on behalf of staff and petitioners, faulted the Ministry of Education for what he termed prolonged underfunding and failure to act despite being fully aware of the crisis.
According to Sawenja, the pension liability stood at Ksh4.2 billion at the time of the agreement in March last year but later rose to Ksh6.2 billion, and may have increased further.
He added that although the Ministry of Education had committed Ksh1.2 billion in the 2025/26 financial year, including Ksh500 million specifically for pensions, gave nothing.
A further pledge of Ksh1 billion in the current financial year has also not been honoured.
The session ended with the committee resolving to summon both the Cabinet Secretary for Education and the National Treasury to explain the growing pension crisis and outline a path forward.
This comes weeks after the management of Kandara Technical and Vocational College came under scrutiny over its fee collection practices.
Appearing before the Public Investments Committee on Education and Governance on Wednesday, April 8, the institution’s principal and senior officials were asked to account for why a significant portion of billed fees for the financial year ending June 2025 had not been recovered.
Findings by the Auditor-General show that the college managed to collect Ksh41.3 million, which represents 49 per cent of the total fees billed.
This left an outstanding amount of Ksh43.3 million, equivalent to 51 per cent.
The audit also raised concerns about the institution’s decision to continue providing services to students with pending fee balances, a move said to be inconsistent with its own Finance Manual and Credit Control and Debtor Policy.
In their response, the college leadership pointed to delays in the release of funds for government-sponsored students as the primary cause of the outstanding balances.
"The Ksh41.3 million reflects actual fees paid by students. The outstanding Ksh43.3 million relates largely to unreleased funds from government-sponsored students, including capitation, HELB loans, scholarships and bursaries," the principal told the committee.
They clarified that such funds are disbursed directly by sponsoring agencies rather than the institution, noting that the college continues to provide training services while awaiting the release of the funds.
"We are operating within the prevailing government financing framework. Denying students access to training due to delayed disbursements would be punitive and counterproductive," the principal added.
