The Technical University of Kenya (TUK) now risks being liquidated over its failure to remit more than Sh800 million to the Staff Retirement Benefits Scheme.
The Retirements Benefits Authority said due to low funding of the scheme and persistent breaches and absence of any concrete remedial action by the university, they were forced to petition the High Court to wind up the university scheme. "I would like to inform the Senate that the liquidator is now legally allowed to collect the contribution arrears from the Technical University of Kenya and pay the outstanding benefits to the scheme's members," said Chief Executive Officer Charles Machira.
According to the scheme's Trust Deed and Rules contributions were initially set at 7.5 per cent for the employee and 15 per cent for the employer between July 1, 2009, and June 30, 2013.
Machira yesterday told a Senate committee that from July 1, 2013, the rates were to increase to 10 per cent for employees and 20 per cent for the employer.
