County workers looking at treasury to clear Ksh 40B debt

The County Pension Fund Schemes expects the National Treasury to float a bond in due course to help clear outstanding current and pensions accrued from formers local authorities to the tune of Ksh 40 billion.

Speaking during the CPF Schemes annual general meeting, CPF Financial Services Group Chief Executive Officer Dr Hosea Kili said the pension fund awaits report by the Debt Audit Taskforce appointed last week by President William Ruto to ascertain the true value of funds owed to current county workers and former municipal workers in non remitted pensions.

“It is a huge amount because there were some money that were brought forward from the former local authorities and combined and combined with what has been accrued since 2013, we are talking about close to Ksh 40 billion,” said Dr Kili.

According to the organization which currently controls four pension funds which include CPF, Local Authorities Pension Trust, Taifa Pension Fund and CPF Individual Pension Fund, late disbursement of equitable share by the National Treasury has led to delayed remittance of pensions affecting its operations.

“That challenge of non remittance has actually been caused by delayed remittance from the National Treasury though the equitable revenue share to counties. So you find that for three months the money has not been received so whatever money comes in counties give to priorities like paying salaries and a few other things and they may not remitting pensions,” said Kili.

CPF is further planning to enter the infrastructure financing market through increased investments in the African Finance Corporation.

CPF’s individuals’ pension scheme net asset declined to Ksh 2.9 billion in 2023 from Ksh 3.1 billion in 2022. The drop was attributed to poor returns from treasury bills and bonds.