The Senate has fined Co-operatives and MSMEs Development Cabinet Secretary Wycliffe Oparanya Sh500,000 for failing to appear before a parliamentary committee to answer questions on pensions.
The Senate Committee on Labour and Social Welfare, chaired by West Pokot Senator Julius Murgor, made the decision on Wednesday after Oparanya ignored summons. The senators directed that he be summoned again in September.
The committee cited Article 125 of the Constitution and Sections 18 and 19 of the Parliamentary Powers and Privileges Act, 2017, which give parliamentary committees the same authority as the High Court to compel attendance.
Oparanya is currently in Dublin, Ireland, leading a high-level Kenyan delegation on a benchmarking mission hosted by the Irish League of Credit Unions (ILCU).
Unpaid Pensions
During the sitting, senators listened to emotional pleas from petitioners over the growing crisis of unpaid pensions and terminal benefits in various sectors. They urged for innovative solutions to long-standing disputes.
National Treasury Cabinet Secretary John Mbadi told the committee that more than 12,000 councillors served before the 2010 Constitution, but only 328 qualify for a one-off honorarium promised in a 1994 presidential circular. He explained that most councillors served part-time and were not entitled to pensions.
“Circular 13/94 only recognizes councillors with 20 years of continuous service as eligible,” Mbadi said.
Mombasa Senator Miraj Abdullahi asked whether the Treasury had carried out a forensic audit to verify how many of the 328 councillors were still alive, as advised by the Attorney General. Mbadi responded that it was up to individual councillors to file claims with the Pensions Department.
Murang’a Senator Joe Nyutu and Nyamira Senator Okongo Mogeni urged the Treasury to adopt a more compassionate approach. Sen. Nyutu even suggested presidential intervention similar to that given to national sports heroes.
Mbadi, however, said only a legal framework could allow such payments. He also condemned what he described as a “criminal” practice by both defunct local authorities and counties of deducting pension contributions from workers but failing to remit them. He revealed that by October 2024, unremitted deductions had reached Sh103.3 billion.
The Kenya Railways Staff Retirement Benefit Scheme (KRSRBs) was also under the spotlight. Over 8,000 retirees are demanding arrears estimated at Sh1.6 billion, though the scheme’s management puts the figure at Sh574 million. Despite holding assets worth Sh38.46 billion, nearly 90 percent of these are tied up in property, leaving the scheme without enough cash.
Kajiado Senator Seki Lenku asked the Retirement Benefits Authority (RBA) to reconcile the figures and conduct a forensic audit of the scheme within two months.
The plight of former Kenya Cooperative Creameries (KCC) workers also resurfaced. They have been waiting for more than 20 years to receive their benefits since the company went into receivership in 1999. Their lawyer, Simoni Namada, pushed their case before the committee.
Mbadi, however, maintained that a Court of Appeal ruling had cleared the government of any legal responsibility to pay them.
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