There is good news for thousands of retired public servants after the government stepped in to address the problem of unpaid pension contributions that have piled up over the years.
Treasury Cabinet Secretary John Mbadi has ordered all county governors to urgently pay a huge Ksh103.2 billion in pending pension contributions owed to government workers who have already retired or are about to retire.
He issued this directive while speaking at the Devolution Conference held in Homa Bay County on Friday, August 15.
Mbadi revealed that county governments have failed to remit pension deductions over a long period, starting from the time before devolution and continuing after devolution began.
This failure has caused widespread concern across the country about the welfare of retirees who depend on these funds for survival in their old age.
In his powerful speech, Mbadi condemned county bosses, accusing them of acting irresponsibly and even called their actions a “felony.” He questioned why county leaders would divert money meant for workers’ pensions to other projects.
He said, “If you are paying employees and part of their salary is supposed to go to pension, then it makes no sense to spend that money elsewhere.”
The CS explained that out of the total debt, around Ksh23.3 billion goes back to the old local authorities before devolved governments were created. The amount has now risen drastically to Ksh103.2 billion as of October 31, 2024.
According to Mbadi, this situation is unfair and morally wrong because that money belongs to people who have served the country and expect to retire with dignity.
He stated that withholding the money is like destroying the future of hardworking citizens who deserve to go home with something when they retire.
Mbadi went on to say that the governors’ failure to pay the pension contributions is not only a breach of their financial duty but also a betrayal of the trust that the public has placed in them.
To solve this crisis, the Treasury Ministry is creating a framework to ensure that all 47 counties make compulsory pension deductions and send them to the required pension bodies on time.
He added, “We must create a habit of remitting all deductions to the right place. I call upon county governments and concerned institutions, even at the national level, to verify and clear these huge debts so that we can protect the future and social security of pensioners.”
Interestingly, this order by Mbadi came just a day after ODM Party leader Raila Odinga proposed that governors who have completed two terms in office should also receive pension benefits.
Positive Impact of Devolution
On a positive note, CS Mbadi praised the success that the country has seen since the implementation of devolution.
He said that devolution has enabled the national and county governments to fairly share revenue for development projects such as road construction, improvement of health facilities, water supply systems, and other vital infrastructure across all 47 counties.
According to Mbadi, devolution has also brought government services closer to the people, boosted decision-making at the local level, and opened up opportunities for job creation and inclusive growth.
He added that devolution has helped bring development to marginalized regions and ensured that resources reach areas that were often neglected in the past.
Overall, while the pension crisis is a major concern, the government’s commitment to addressing it and the continued success of devolution offer hope for a more just and equitable future for retirees and citizens across the country.
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