SUMMARY
- The fight for the control of the Sh60 billion pension fund for employees of county governments has intensified with two administrators challenging attempts by the national government to control the kitty.
- In a case filed under a certificate of urgency, the two schemes have maintained that a legal opinion by the Attorney General to treat them as public entities is ill-advised.
The fight for the control of the Sh60 billion pension fund for employees of county governments has intensified with two administrators, the Local Authorities Pension Trust (LapTrust) and the County Pensions Fund (CPF) challenging attempts by the national government to control the kitty.
In a case filed under a certificate of urgency, the two schemes have maintained that a legal opinion by the Attorney General to treat them as public entities is ill-advised.
The schemes argue that LapTrust, CPF, and their affiliated companies can only be converted into “public entities” of the national government with the approval of Parliament, the cabinet, and county assemblies.
In a legal opinion on July 16, the AG directed various national government officers and agencies to align Laptrust, CPF, and their affiliated companies with the public service.
On July 26, State Corporations Advisory Committee (SCAC) Secretary Wanjiku Wajogi wrote to LapTrust chief executive officer (CEO) Hosea Kili seeking information relating to the pension fund and its subsidiaries. Ms Wakogi refers to the Attorney General’s letter.
But LapTrust and CPF rushed to court saying the AG has formed a habit of issuing conflicting and ever-changing legal opinions on the status of schemes and their affiliated companies.
“As is evident from the SCAC Letter and the 1st Respondent’s letter, the Respondents and other officers and agencies of the National Government are hell-bent on implementing the impugned directives despite several fundamental issues of unconstitutionality and illegality,” LapTrust chairman George Kwedho says in a statement filed in court.
Dr Kwedho says the national government has been harassing, persecuting, and issuing sanctions against the schemes on the strength of the AG’s legal opinions. He says the AG has so far issued three legal opinions.
He said the administration or management of pension schemes for county government workers lies with County Public Service Boards in their respective capacities as the sponsors of LapTrust and CPF.
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