The Ministry of Finance continues to delay pension payments for retired public employees and has also failed to release funds for July this year.
Despite a budget allocation of Sh223.15 billion for pension payments in the 2024/2025 financial year, retirees have yet to receive their due amounts.
The delay has compounded their frustrations, as they have not received Sh23.78 billion allocated in the previous financial year’s budget, which ended on June 30, 2024.
The Ministry of Finance is grappling with significant debt repayment obligations and declining revenue, which has hindered its ability to process pension payments on time.
The financial turmoil impacts 259,222 retirees and 83,615 additional dependents who rely on these pensions for their daily needs.
In response to the situation, Parliament has criticized the Ministry of Finance and is advocating for substantial reforms in the pension distribution process.
“Policy measures to reform resource management should be implemented to alleviate the burden of pension payments,” stated the Parliamentary Committee on Public Debt last month.
The Ministry of Finance is expected to prioritize pension payments as its second most important responsibility after settling public debts.
However, the significant debt burden and the Tax Collection Authority’s (KRA) failure to meet tax collection targets have contributed to the delays.
It remains unclear if pensions have been issued since the beginning of this month.
Civil servants retire at the age of 60, and the pension burden is anticipated to increase over the next five years following President William Ruto’s mandate for mandatory retirement at this age for government employees.
