Taita Taveta on the spot over Sh700m in unremitted statutory deductions

Taita Taveta County is on the spot over unpaid statutory and third-party deductions to its health workers totalling over Sh700 million.

The recent strike by health workers in the county has once again exposed the deep-seated problems plaguing the county's finances.

Although the health workers have returned to work, the failure of the county government to remit the deductions remains a major concern.

The county currently owes a staggering Sh715.7 million in arrears dating back to 2022, with over Sh478 million owed to various statutory bodies such as Lapfund, Laptrust, Public Service Superannuation Scheme and the National Social Security Fund (NSSF), which have been deducted from workers' salaries but not remitted.

The Finance Department disclosed that over Sh237.6 million deducted from workers' salaries to cover third-party deductions have not been remitted, leaving workers exposed to penalties and interest for non-remittance of their insurance payments, bank and sacco loans.

According to records, Sh134 million is owed to banks, Sh101 million to saccos and Sh13 million for personal insurance.

The financial mismanagement has not only affected workers' morale but also their financial stability, as many are unable to access their pension benefits.

During the strike, Governor Andrew Mwadime sent his County Executive for Finance, Dawson Katuu, on compulsory leave and transferred the County Chief Officer for Finance, Nashon Chovu, to the Trade Department. The governor appointed Public Works CEC Martin Tairo to the Finance Department in an acting capacity to resolve the situation.

However, the unions have made it clear that if the agreed terms are not met, the strike will resume without further notice.

"Around 80 percent of the issues we had raised have been resolved. The pension issue was a big concern but some amount was paid that is why we decided to suspend the strike," said Synnete Ogola, the chairperson of the Kenya National Union of Nurses Taita Taveta branch.

The county has promised to ensure timely payment of salaries and to address the issue of the arrears.

Governor Mwadime acknowledged the gravity of the situation and said the county is committed to resolving the issues.

He said his administration would work to prevent a recurrence of such a situation.

"This issue has not cropped up now. It started with the first regime. We have discussed how to end this mess and as the governor I commit to resolve it," he said.

Assembly speaker Anselm Mwadime said the House would take action against those responsible for failing to remit the deductions on time.

He vowed that the assembly would enforce its mandate on the matter and dismissed allegations that it was in bed with the executive.

"We will do our mandate as it is required by law and we will follow the due process. Also, the relevant anti-graft agencies should come and investigate," he said.

The latest medics' strike, which began in early September, brought health services across the country to a standstill. Facilities were closed, forcing patients to seek expensive alternatives in private facilities.

For more than a decade, the county's workers have been struggling with unpaid deductions, leading to repeated industrial action by health workers.

The strike was also fuelled by delayed salaries, shortages of medical supplies and the unresolved issue of unremitted deductions.

After intense negotiations, the health workers agreed to suspend the strike for 30 days, giving the county government a window of opportunity to fulfil its promises.

The return-to-work formula, signed on October 2, 2024, outlines several commitments by the county government, including the immediate payment of Sh100 million towards pension arrears, with an additional Sh150 million to be allocated through a supplementary budget.

The remaining balance of the pension and third-party deductions will be paid in tranches over the next 12 months.

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