ELDORET,June 2026 -Kisumu Governor Prof Anyang’ Nyong’o has challenged the Local Authorities Pensions Trust (LAPFUND) to have a review on its investment philosophy, urging a paradigm shift away from abstract financial markets toward real-world projects that directly benefit its members.
Speaking on Thursday, June 3rd, during LAPFUND’s 15th Annual General Meeting held at an Eldoret hotel, Nyong’o emphasized that prudent financial management must prioritize the welfare of ordinary workers over speculative gains.
Paradigm Shift
The theme of this year’s AGM, “Empowering Your Retirement Journey,” served as the backdrop for the Governor’s call for a paradigm shift in how pension funds are deployed across the country.
Nyong’o argued that after three decades of hard labour and saving, workers deserve to see their money actively stimulating the real economy rather than existing merely as digital balance sheets.
“We must move away from speculative, abstract financial instruments that mean nothing to the ordinary worker. We are not just looking at a financial portfolio; we are looking at the foundational security of the men and women who keep our counties running,” he advised.
The Governor noted that Kisumu County is a major stakeholder in LAPFUND’s 66-year legacy, which dates back to 1960. Currently, more than 2,500 Kisumu County Government employees are active contributors to the fund.
Member Accessibility
While acknowledging LAPFUND’s strategic footprints in real estate, housing, and commercial infrastructure within Kisumu, Nyong’o raised a critical question regarding member accessibility. He stressed that members should not be mere spectators of the mega-projects they fund.
“If the trust builds houses, members must be granted first-priority, affordable access to tenant-purchase schemes. Similarly, commercial investments should yield preferential rates for the contributors,”Nyong’o said.
The call for reform comes at a challenging time for local administrations as Governor Nyong’o highlighted the severe economic headwinds facing Kenyan counties, particularly the shrinking fiscal space caused by delayed exchequer releases from the National Government.
According to Nyong’o these delays have severely strained county cash flows, threatening the timely remittance of statutory deductions like pensions.
Despite these pressures, the Governor maintained a firm stance on the protection of workers’ dues, stating that employee pensions are sacred deferred wages rather than discretionary funds.
He pledged that his administration would continue to explore innovative fiscal management to ensure obligations to LAPFUND are prioritized.
To insulate workers’ savings from inflation and market volatility, Governor Nyong’o invited LAPFUND to partner with county governments in highly resilient, high-yielding sectors.
County-led PPPs
Specifically, he pitched co-investment opportunities in the Blue Economy on Lake Victoria, Renewable energy initiatives, and Agricultural value-addition projects.
To facilitate these high-impact investments, the Governor called for a more predictable regulatory environment. He urged national regulators to cut through the bureaucratic red tape, allowing pension funds to seamlessly participate in County-led Public-Private Partnerships (PPPs).
In his closing remarks, Nyong’o reminded the trust’s leadership that a secure retirement is built on deliberate, courageous choices rather than chance.
“LAPFUND should remain the steady anchor it has been for over six decades by guarding the past, investing in the present, and guaranteeing the future,” he urged.
