House Committee seeks to address TU-K financial crisis as unions decry delayed salaries, collapsed pension scheme

House Committee seeks to address TU-K financial crisis as unions decry delayed salaries, collapsed pension scheme 

𝐏𝐚𝐫𝐥𝐢𝐚𝐦𝐞𝐧𝐭 𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠𝐬
𝐌𝐚𝐫𝐜𝐡 𝟏𝟗, 𝟐𝟎𝟐𝟓 

Members of Parliament have vowed to push for urgent intervention at the Technical University of Kenya (TU-K) after union officials highlighted a financials crisis that has left staff without salaries, pensions, and medical cover.

Appearing before the National Assembly Committee on Education, officials from the Universities Academic Staff Union (UASU), Universities Academic Staff Union (UASU), the Kenya Universities Staff Union (KUSU), and the Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals and Allied Workers (KUDHEIHA) presented a comprehensive account of systemic failures that have led to the collapse of staff welfare programs.

“We have been dealing with an unresponsive University Management Board and Council for years,” said UASU Secretary TU-K Chapter, Mr. Fred Sawenja. “Deductions have been made from our salaries, yet statutory and third-party remittances were never forwarded to financial institutions.”

The Committee learnt the failure to remit pension contributions for over 15 years (2009-2024 has lead to the Retirement Benefits Authority (RBA) ordering the scheme’s winding up. 

Union representatives claimed that more than Ksh 5 billion in pension contributions had disappeared, leaving retirees and current employees without a pension and legal action by banks against staff members.

Hon. Eve Obara questioned the transparency of the pension scheme, demanding an official audit. “Was the collapse a result of mismanagement or failure to remit funds? Can you provide evidence of payslips indicating these deductions?” she asked. Hon. Mary Emaase added that “Who should be held responsible for this collapse? Did you not have representatives as trustees of the scheme?”

Union leaders further revealed that TU-K staff have endured months of salary delays, with more than 300 employees waiting years for their promotions to be implemented. Additionally, the university has failed to remit NHIF contributions, leaving workers without medical cover.

“We have outstanding medical bills of over Ksh 49.5 million,” said Mr. Sawenja. “Despite the letters of appointment stating that staff are entitled to 100% outpatient reimbursement and 80% inpatient reimbursement, the scheme is vague.”

Led by UASU National Office's Onesmus Mutio detailed the protracted struggle to engage with the university's management and council.

The Unions called on the Committee of Education to intervene, warning that the financial crisis at TU-K was worsening.

The Committee also heard that TU-K’s liabilities stand at Kshs 12.99 billion rendering the university technically insolvent. 

Hon. Dick Maungu called for strong recommendations to address the governance crisis in Kenyan University. “The Technical University is technically insolvent, with liabilities of Ksh 12.99 billion against an asset base of Ksh 8 billion,” said Hon. Maungu.

Committee Chair Hon. Julius Melly assured union leaders that action would be taken. “We will put the Ministry of Education and the University Council to task. The Pensions scheme was wound up under very unclear circumstances. It has collapsed with life savings of staff,” he stated.

The Committee on Education requested the Unions for audited accounts of the pension scheme, details of its leadership, and evidence of unremitted deductions.