The national government has set in motion plans to unlock at least Sh85 billion owed to pensioners by counties, a move that could see struggling retirees finally receive their dues.
National Treasury Cabinet Secretary (CS) John Mbadi has set up an 18-member multi-agency team to come up with ways to clear the pending billions of shillings.
This is after senators approved a report by the County Public Investments and Special Funds Committee chaired by Vihiga Senator Godfrey Osotsi, which had been probing the unremitted deductions.
The committee had asked former Treasury CS Njuguna Ndung’u to establish a multi-sectoral taskforce to resolve the dispute between pension schemes and the counties.
The taskforce on non-remittance of pension deductions to pension schemes by county governments will be led by Budget, Fiscal and Economic Affairs head at Treasury Albert Mwenda as the chairperson.
"The object of the appointment of the taskforce is to actualise the government’s commitment to the timely remittance of pension deductions to pension schemes by county government entities," reads the Gazette Notice by Mr Mbadi published last Friday.
Other members of the team are drawn from the office of the Attorney-General, Office of the Controller of Budget, Intergovernmental Relations Technical Committee and Local Authorities Provident Fund, Retirement Benefits Authority, County Assemblies Forum, County Pension Fund, National Social Security Fund and Council of Governors.
"The taskforce will develop an appropriate formula and framework for payment of pension liabilities that will enable the clearance of outstanding pension liabilities by county governments," Mr Mbadi said in the notice.
