The Technical University of Kenya (TUK) in Nairobi has been given 30 days to pay 6.43 billion Kenyan shillings in outstanding pension contributions for current and former employees, as well as accrued interest. Lawyers for the employees’ pension scheme, which is being wound up, warned of possible court recovery if the university does not settle the debt by December 7, 2026, Nation Kenya reports.
On November 6, the law firm Long’et & Mumo LLP sent a demand letter to the university’s vice-chancellor on behalf of the pension scheme, which has more than 1,850 members. According to the lawyers, 3.04 billion shillings of the claimed amount are unpaid contributions, while another 3.39 billion shillings are interest that continues to accrue until full repayment.
Under the scheme’s rules, the university was required to pay a contribution equal to 20% of an employee’s pensionable salary, as well as collect and remit the 10% deducted from employees’ salaries. The arrears schedule begins in July 2010 and lists 3.48 billion shillings in accrued contributions and 441.5 million shillings in payments made. Interest on overdue amounts was charged monthly at annual rates for 91-day Treasury bills.
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The pension scheme was placed under administration in November 2015. The High Court ordered its winding-up in July 2024, finding the scheme insolvent and unable to meet its obligations; a liquidator was appointed in January 2025.
A Senate report presented in October stated that, as of April 2026, the scheme had receivables of 6.83 billion shillings, while available assets amounted to 907 million shillings. The Senate committee estimated that these funds could cover only about 13% of the members’ accumulated benefits. In September, the university said that the liquidator planned to distribute 906.6 million shillings in two tranches, equivalent to 12.38% of benefits due to members.
The Senate committee also reported that for more than 15 years, the university had deducted pension contributions from employees’ salaries but had not remitted either those funds or the employer’s contributions. The committee recommended that the Directorate of Criminal Investigations and the anti-corruption commission investigate the non-remittance of more than 4.1 billion shillings and decisions by university officials. TUK told senators that the situation was caused by insufficient funding and cash-flow problems; as of January 31, 2025, the university’s unpaid bills stood at 12.99 billion shillings.
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