County governments are under pressure over failure to remit more than Ksh40 billion ($309.6 million) in pension deductions to workers’ schemes, with the Kenya County Government Workers Union warning of decisive action.

Union General Secretary Roba Duba said the total outstanding pension arrears for the 47 counties now stands at Ksh40 billion, and could rise to Ksh42 billion ($325 million) after factoring in interest and penalties.

The arrears, he said, relate to deductions made from workers’ salaries but not remitted to the Local Authorities Pension Fund (Lapfund) and the Local Authorities Pension Trust (Laptrust).

“They deduct but do not pay. These are workers’ retirement savings. You cannot play around with that money,” Duba said.

He singled out Nairobi as the leading defaulters, saying the county’s arrears were close to Ksh22 billion ($171 million) as at the last assessment, although it has begun remitting current deductions.

“They are trying to pay the current ones, but that is far from solving the historical debt,” he said.

Addressing the media in Kisumu on Saturday, Duba who was re-elected for another five year term warned that continued failure to remit the contributions violates the Retirement Benefits Act and exposes workers to uncertainty over their retirement benefits.

He said some counties were negotiating with pension schemes to reduce penalties and interest but insisted that the principal amounts must be paid in full. Duba cautioned that unless counties clear the arrears and regularise remittances, workers would be left vulnerable despite consistent salary deductions.

The general secretary further took issue with delayed negotiation and implementation of collective bargaining agreements (CBAs) across counties, terming the trend deliberate and unjustified.

Duba said the last centrally negotiated CBA was concluded in 2012 before the advent of devolution in 2013.  Since then, counties have been negotiating independently with the union.

“We have had very slow progress. Deliberately slow,” he added.

He noted that Nairobi and Mombasa counties have made significant progress in negotiations, while Kisumu was next in line for talks to be concluded.

“Two big entities – Nairobi and Mombasa – have moved. Kisumu is now on target and must be ready to negotiate to finality,” he said, adding that discussions were also ongoing in Kajiado, Kilifi and Embu.

He accused some governors of citing lack of revenue growth as a reason for failing to implement CBAs.

“A county that started with Ksh5 billion at the onset of devolution is now receiving about Ksh10 billion. Then you say there is no growth and no money? Government is not a profit-making organisation,” Duba said. He said public service regulations bar stagnation of officers in the same position for more than three years, but many county workers have remained in the same job groups without promotion. The general secretary also expressed concern over what he described as attempts to casualise county employment.

“If government says it will not have permanent employees where will permanent employment be found? Government has a responsibility to provide decent work,” he said.

He added that the re-elected union leadership would constitute regional assemblies to push counties to honour CBAs and comply with labour laws.

“We are putting them on notice. We will push until they play within the law,” he said.

• A Tell Media / KNA report / By Chris Mahandara