A fresh row is brewing between the Council of Governors and the Treasury Cabinet Secretary Henry Rotich over failure by counties to remit pension and other statutory deductions for workers to relevant bodies.
Rotich has threatened to deduct all county workers’ statutory payments from devolved units’ allocations before disbursing the funds if the counties fail to honour the remittance. The CS said only 16 of the 47 counties had remitted the pension deductions, adding that the other counties were channeling the funds to other uses illegally.
Rotich warned that devolved units that have not remitted the contributions as per the Retirement Benefits Regulations timelines risk losing investment on members’ savings and accumulating penalties which may also lead to underdevelopment. “As Treasury, we will not tolerate any county that does not pay statutory deductions for their workers.
We will be evaluating all counties to see that all counties adhere to the set policies,” said Rotich in Mombasa. Estimates indicate the that 100,000 county employees contribute Sh20 billion a year as retirement savings. Lapfund executive director David Koross said the retirement fund has recorded a significant annual revenue growth from Sh5.3 billion in 2014 to Sh23.5 billion this year.
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