Treasury Cabinet Secretary John Mbadi has directed all county governors to immediately clear over Ksh103.2 billion in unpaid pension contributions to government retirees.
Speaking at the Devolution Conference in Homa Bay County on Friday August 15, Mbadi revealed that these debts had accumulated over the years, from both the pre- and post-devolution periods. They have sparked national concern over the future of thousands of public sector retirees.
In an emotionally charged speech, Mbadi likened the situation to a felon, accusing county governors of deliberately withholding funds intended for workers' retirement benefits.
“If you are supposed to pay a salary to a staff member and part of that salary is supposed to go to his or her pension, there is no rationality in diverting it elsewhere,” the CS said.
According to Mbadi, county governments owe a substantial amount of pension debt. He explained that this debt has accumulated over the years from Ksh23.3 billion relating to the defunct local authorities (pre-devolution) to over Ksh103.2 billion as of October 31, 2024 (post-devolution).
“To be honest, this is a felony; it is not fair. It is unjust because this money belongs to people who will one day retire, and when they retire, they want to go home with something. You are killing the future of individuals,’’ the CS continued.
The CS said that the negligence is a breach of financial responsibilities on the governors' part and also a betrayal of public trust.
The Treasury CS announced that his ministry is working on a framework to enforce mandatory pension deductions and remittances across all 47 counties.
“Whatever it takes, we must start the culture of remitting all deductions to where they should be remitted. I am calling upon the county government and the relevant institutions concerned, even at the National government, to verify and clear the debts to safeguard the social securities of our pensioners,’’ the CS continued.
The call comes a day after ODM Party leader Raila Odinga requested that governors who have served for a maximum of two terms be awarded with pension perks.
Devolution breakthroughs
On the bright side, the CS has hailed the improvements the country has been able to witness owing to devolution.
According to Mbadi, since devolution began, the government has been able to agree on sharable revenue to finance roads, health facilities, water projects and other critical infrastructure across all 47 counties.
Mbadi also said that devolution has brought resources, decision-making, and services closer to people, creating new pathways for inclusive growth, job creation, and equitable development in marginalised areas.
