Nairobi — Kenya local authorities have been urged to encourage their employees to join a pension scheme to enable them secure their future after retirement.

Local Government minister Musalia Mudavadi said Monday the membership of the Local Authorities Pension Trust (Laptrust) currently stands at 20,000 against a workforce of about 40,000 employees.

"I therefore appeal to chief officers to encourage all their employees in both Local Authorities and Water and Sewerage companies to join Laptrust which currently offers superior benefits," Mr Mudavadi said.

Speaking while opening the members' conference of Laptrust held at Safari Park Hotel in Nairobi, Mr Mudavadi said the pension scheme is owed Sh1.5 billion by the various local authorities.

"These amounts should be cleared urgently to enable Laptrust to invest the same to enable it in meeting it's obligations to the members," Mr Mudavadi, who is also the Deputy Prime Minister, said.

Mr Mudavadi restated that management of local authorities should ensure they have cleared their arrears and penalties by June 2010 to avoid losing future access to Local Authority Transfer Funds.

The minister praised Laptrust for partnering with Housing Finance Company Limited in offering its members mortgage financing guarantee.

"This is indeed a great achievement since Laptrust has become the pioneer pension scheme in the country to give its members access to affordable housing in the country."

Participants at the two-day conference will also address reforms in the civil servants pension scheme with a view to improving service delivery.