Senate Orders Laikipia County to Set Timeline for Ksh49.8 Million Staff Deductions

The Senate Committee on County Public Investments ordered Laikipia County to settle Ksh49.8 million in unremitted staff deductions. The committee met with Governor Joshua Irungu and county officials on Thursday, October 1 to assess implementation progress on Auditor-General findings.

The money had been deducted from employees of two county-owned water companies. Both water firms failed to forward the deductions to employees' pension schemes as required by law.

Water Companies Hold Millions in Employee Funds
Nanyuki Water and Sewerage Company accounts for Ksh25.65 million of the outstanding deductions. Nyahururu Water and Sewerage Company holds approximately Ksh24.14 million in pending employee contributions.

Delayed Remittance Threatens Retirement Benefits
Senator George Mbugua warned continued delays could affect employees' retirement benefits and result in additional penalties. "Once money is deducted from an employee, it is no longer the company's money," Mbugua stated firmly.

Committee Vice-chairperson Senator Beth Syengo called for proof of action and specific clearing dates. The senators demanded the county provide definitive timelines for settling all outstanding obligations immediately.

Governor Cites Financial Challenges at Water Firms
Governor Irungu attributed delayed remittance to financial challenges at the water companies. He said unpaid bills by government institutions, including security agencies, created the payment crisis.

Irungu requested until the end of the financial year to address the outstanding deductions. He assured the committee that measures had already been implemented to resolve the issue.

National Government Faces Similar Deduction Crisis
The issue of unpaid remittances has become a growing concern across Kenya's public sector. The Controller of Budget reported Ksh115.57 billion in unremitted statutory deductions by the national government as of March.

Water Tariff Disparities Draw Senate Scrutiny
Senator John Kinyua questioned significant differences in water charges between the two towns. Nyahururu residents pay Ksh120 per cubic metre compared with Ksh68 in Nanyuki currently.

Governor Irungu attributed higher Nyahururu tariffs mainly to electricity expenses for operations. He called for urgent action on power costs affecting water service providers nationwide.

Customer Deposit Deficit Requires Escrow Account
The committee sought explanation for a Ksh6.3 million deficit in customer deposits. The county said an escrow account was now receiving daily deposits to replenish the shortfall.