EAC Pension Dispute: Lawyer Kevin Ithagi Demands Answers From Crown Agents Liquidators Over Ksh 1.2 Trillion Claim
Lawyer Kevin Turunga Ithagi has demanded a detailed account from the joint liquidators of Crown Agents Limited over a £377.36 million pension claim lodged on behalf of approximately 840 former employees of the defunct East African Community (EAC).
In a letter dated September 16, 2026, Ithagi, representing former EAC employee Castory Madembwe and members of the Payroll 3A1 group, asked the liquidators to disclose the investigations undertaken to trace pension funds allegedly held or administered by Crown Agents.
The lawyer gave the liquidators seven days to provide information on the searches conducted, relevant financial records and the status of his client’s claim.
Lawyer Threatens Legal Action
Ithagi warned that failure to provide the requested information or evidence that the claim had been rejected without adequate investigation, could lead to legal proceedings.
The possible steps outlined in the letter include appealing the rejection or non-admission of the claim, seeking court directions on the liquidation process and pursuing other remedies before a competent court.
The demand follows the liquidators’ earlier position that they had not identified pension funds or other assets attributable to the former EAC. They also indicated that insufficient funds meant unsecured creditors should not expect a dividend.
The liquidators advised the claimants to seek information from the UK Foreign, Commonwealth and Development Office (FCDO), Crown Agents Bank Limited and Crown Agents Investment Management Limited.
However, Ithagi maintains that the absence of identified assets does not eliminate the need for a clear record of the investigations undertaken to establish whether the funds or related documentation can be traced.
£377 Million Pension Claim
According to correspondence Ithagi sent to the UK Government Legal Department on July 25, 2026, approximately 840 former EAC employees under Payroll 3A1 submitted a consolidated proof of debt to Crown Agents’ liquidators on March 6, 2026.
The claim was valued at approximately £377.36 million.
The claimants maintain that pension contributions made by former employees and their employer were held by Crown Agents before the funds were transferred following the dissolution of the regional community in 1977.
They want the liquidators to account for the steps taken to trace the money and establish what records or assets may remain connected to the pension scheme.
Dispute Over Responsibility for the Funds
The pension dispute has involved competing positions on who bears responsibility for the funds.
In correspondence dated October 29, 2021, UK law firm Leigh Day, acting for former EAC employees, argued that Crown Agents had obligations to protect the beneficiaries’ interests during the transfer of the pension funds. The firm alleged that the transfer breached trust obligations, a position that remains contested.
The UK Government has previously rejected liability for the pension payments.
In a response dated November 29, 2019, the Government Legal Department stated that responsibility for administering the pension funds rested with the relevant East African partner states under the 1984 Mediation Agreement.
The FCDO subsequently informed Ithagi’s firm that it and the Government Legal Department did not hold records relating to the scheme. The claimants were directed to the UK National Archives and Crown Agents’ liquidators.
Liquidation Process Under Scrutiny
Crown Agents Limited entered compulsory liquidation on August 1, 2024, with joint liquidators appointed the following day, according to the July 2026 correspondence.
The latest demand seeks to establish whether pension-related assets or records can be traced and what steps have been taken to investigate the claim.
The £377.36 million claim remains unresolved, with the former employees seeking answers on the whereabouts of the funds while the parties continue to dispute responsibility for their administration and payment.
