In March 2025, the Technical University of Kenya (TUK) faced a severe financial crisis, with a pension fund deficit of KSh4.3 billion and total debts amounting to KSh12.9 billion. The collapse of the Staff Retirement Benefits Scheme (SRBS) in 2017, which lost KSh5.3 billion, left many retirees without their benefits. The government initiated a Strategic Intervention Plan (STIPA), providing KSh145 million for salary payments from January to June 2025 and planning a phased repayment of pension arrears through 2032. Investigations are ongoing to identify those responsible for the mismanagement of the pension funds.
Comments/Recommendation
The financial instability at TUK has led to delayed salaries, non-remittance of statutory deductions, and the collapse of pension schemes, undermining the welfare and morale of academic staff. ACAF is concerned about the fact that this environment hampers the ability of educators to perform their duties effectively, thereby threatening the quality of education and academic freedom within the institution. It consequently calls for urgent steps to rectify such gaps.
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