A sharp division has emerged between two major workers’ unions over the responsibility for billions of shillings in unremitted pension dues, leaving hundreds of Nairobi City Water and Sewerage Company retirees in financial limbo.

The dispute pits the Nairobi County Workers Union (NCWU) against the Water Services Workers Union (WSWU). While the WSWU and retirees accuse the water utility of negligence, the NCWU has come out in defense of the company, terming the debt a historical issue anchored in the County Government.

On Tuesday, retirees and WSWU officials claimed that Nairobi Water owes them over Sh4 billion to various schemes specifically Sh2.6 billion to Laptrust, Sh900 million to Lapfund, and Sh500 million to the County Pension Fund.

“This is literally employees’ salaries; they deducted the money and never sent it to the pension houses,” said Matilda Kimeto, National General Secretary of the Water Services Workers Union.

However, in a press statement led by Branch Secretary Wycliffe Onditi, the NCWU dismissed these claims. They cited findings from a tripartite committee, which reviewed files from the Finance Department and the County Attorney’s office, concluding that the Nairobi Water and Sewerage Company should not bear full liability for arrears that are historically attributable to the county government.

The NCWU revealed that the matter is now before a Senate-initiated committee chaired by Treasury Cabinet Secretary John Mbadi. This team is exploring options to clear the arrears by offsetting debts the County claims are owed to it by the National Government.

“Part of the expected proceeds from ongoing negotiations could be channeled toward clearing the pension arrears,” the NCWU statement noted, though they admitted progress has been slow.
The union has demanded immediate payment of the arrears and called for full transparency in the Laptrust scheme to resolve the stalemate.