It was a moment of relief and excitement when it was announced that the funds from the dissolved Technical University of Kenya Staff Retirement Benefits Scheme (TUK-SRBS), shall be paid on or before 16th October 2026.
This announcement was made on Wednesday 16th September 2026 during a consultative meeting between the serving and retired members of staff, the Liquidator of the now defunct TUK-SRBS, the fund manager (Co-op Trust) and administrator (CPF), the firm that audited the books of account of the scheme and a representative of the Retirement Benefits Authority who attended as an observer.
The consultations were mainly centred around the modalities and the way forward in the winding up process of the Scheme.
The meeting was held at the University Main Hall and streamed live via Zoom. The Liquidator Long'et & Mumo LLP, was represented by Mr Long'et Terer and his team who assured the members that the funds would be paid in two tranches since the funds are being held in the form of Treasury Bills, equities and deposits in different institutions where they are invested. Therefore, it would be a process to convert them into cash.
Mr. Terer informed the members that they shall be paid 12.38 per cent from the 906.6 million being the amount available. The auditor had reported that as at 2021, the Sponsor (TU-K), had remitted to the Scheme Sh430 million which, after being invested in 2024, has since grown to Sh906.6 million. So far, the Sponsor owes the Scheme Sh3.0 billion and the accrued interest based on the Central Bank of Kenya base rate of 8 per cent stands at Sh3.4 billion. As at now, the value of the Scheme is Sh7.3 billion.
In accordance to the laws of Kenya governing pension funds, the Liquidator explained that the members that are under 50 years of age shall be paid 50 per cent of the money due to them except for the ones that are experiencing confirmed ill health or have exited the University service or the beneficiaries (next of kin) of deceased members of the Scheme. The members were also advised and strongly encouraged to search for and join a suitable pension management scheme where their 50 per cent portion of the payment would be deposited to continue attracting interest for their future benefit.
Members that are aged 50 years and above shall be paid 100 per cent of the amount due to them but still shall be free to decide whether to receive the full amount or ask the fund manager to send their dues to a private Scheme where they may be operating an account.
The CPF representative assured members that on or before 28th September 2026, they shall receive individual statements via email indicating their contributions, the employer component and the accrued interest.
The TUK-SRBS, a defined contribution pension arrangement, was placed under statutory administration in November 2015. The High Court subsequently issued an order for its liquidation in July 2024 with the Liquidator formally appointed in January 2025.
The independent auditor presented a report on the books of account covering the period 2009 and 2024. He noted that the exercise had been undertaken with close reference to the Scheme's trust deed and rules in what was described as a “detailed and methodical process”.
Mr. Terer outlined the steps taken since assuming the role including the reconstruction of member records in line with the Scheme's trust deed and rules, and a validation exercise in which 1,289 members (out of 1,832) participated during the verification exercise held in 2025. He noted that priority claims would be settled ahead of any distribution to members, in line with retirement benefits regulations governing the winding up of schemes. The priority claims were listed as those owed to RBA, the Liquidator, the auditor and Fund Administrator totalling Sh8.68 million.
Mr Terer further outlined the proposed next steps, including a request to the Sponsor to pay up the outstanding principal employer contribution and accrued interest totalling Sh.6.4 billion. He disclosed that the Liquidator would have to consider any of the available options to recover the funds from the Sponsor including the acrimonious one of moving to court or just request (by writing a letter to the Sponsor) to pay the funds.
The Liquidator presented a proposal to retain 10 per cent of available funds to be paid out to members to sustain the Scheme's operations as it pursues recovery of outstanding receivables. The members unanimously agreed to the proposal to retain 10 per cent and agreed to be paid in a graduated formula based on the year one joined the University service.
In his opening remarks, the Vice-Chancellor, Prof. Benedict Mutua assured the members that the University (Sponsor) was determined to ensure a new scheme is established as soon as possible. He added that every effort (including petitioning the Ministry of Education and the National Treasury) over the 2024 return-to-work formula in which a commitment was made to avail part of the money owed to the Scheme. The return-to-work formula was signed between the staff unions, University Council, and the Ministry of Education following an industrial action that paralysed learning for more than one month.