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National Treasury Cabinet Secretary (CS) John Mbadi has put county governors on the spot over Ksh 103 billion in unpaid pension contributions, urging them to clear the arrears and safeguard the social security of Kenyans.
Speaking on Friday, August 15, during the Devolution Conference in Homa Bay, Mbadi stated that pension arrears by county governments have accumulated over the years to billions, calling it a criminal act.
“Analysis of data on unremitted pension contributions submitted by the Local Authorities Trust Fund, Local Authorities Provident Fund, National Social Security Fund, Public Service Superannuation Fund, and County Pension Fund indicates that a substantial amount of pension debt is due from county governments,” Mbadi decried.
“Pension debt by county governments has accumulated over the years — from Ksh 23.3 billion relating to the defunct local authorities (pre-devolution, inclusive of accrual deficits) to now over Ksh 103.2 billion as of October 31, 2024, post-devolution.”
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Mbadi Puts Counties on Notice to Clear Ksh103 Billion Pension Debt
Mbadi criticised counties for delaying pension payments, adding that when county government workers retire, they expect to go home on full pay.
He warned the governors that by failing to remit these funds, they are jeopardising the future of some individuals in the country.
“To be honest, this is criminal. If you are supposed to pay salary to a staff member, and part of that salary is meant for his or her pension, there is no rationale in paying half of the salary and leaving the rest with you or the county government to fund other things,” Mbadi said.
He added, “It is not fair. It is unjust because this money belongs to people who will one day retire. When people retire, they expect to go home with something. By failing to remit these funds, you are killing the future of some individuals in this country.”
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Mbadi called on county governments and relevant institutions to remit pensions in time, noting that the problem extends even to the national level.
“So, please — whatever it takes — we must now start the culture of remitting all deductions to where they should be remitted,” he said.
“I am calling upon the county governments and the relevant institutions concerned — and this is not just at the county level, even at the national level we have some of these challenges — to verify and clear the debts to safeguard the social securities of our pensioners,” he said.
He reaffirmed the government’s commitment to strengthening service delivery and promoting accountability across all levels of government.
He pledged that, under his leadership, the Treasury and the national government will continue supporting county governments to ensure effective devolution and improved services for Kenyans.
“Let us all diligently play our roles of strengthening service delivery, upholding accountability and ensuring that no Kenyan is left behind,” he added.
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