The National Assembly has given the Treasury a two-week ultimatum to address gaps in the Electronic Pensions Management Information System (E-PMIS), which remains non-functional despite being procured and piloted.
The Special Funds Accounts Committee issued the directive to Treasury PS Chris Kiptoo on Tuesday, when he appeared before the committee after months of ignoring parliamentary summonses, a situation that had put him at odds with legislators.
The directive comes after it emerged that the government’s failure to reconcile missing balances under the new system has had severe human costs, leaving elderly citizens distressed and financially strained after years of public service.
The E-PMIS was adopted by the government in December last year as part of the financial reforms to streamline management in the pensions system to ensure that it becomes completely paperless.
According to the Pensions Department, the transition to the system is aligned with global best practices, where pension systems are currently leveraging digital solutions to improve service delivery.
The Committee, chaired by Rahim Dawood, instructed the Treasury to reconcile missing balances and report back within 14 days, following audit findings that revealed gaps in the system's functionality and financial records.
During the session, the lawmakers told the Treasury that they were committed to safeguarding public funds and demanded assurances that the lapses, including repeated delays and non-compliance, would not recur.
MPs warned that continued negligence could trigger tougher parliamentary measures to hold Treasury officials accountable.
Additionally, the MPs told the Treasury that once the missing balances are reconciled and the system is fully functional, pension disbursements should become automatic, eliminating the recurring delays that have affected retirees.
Meanwhile, at the same time, the committee flagged a Ksh1 billion that has remained dormant for over a decade in a fund overseen by the Treasury without a board or manager.
The lawmakers questioned why the money was left idle rather than invested or redirected to urgent national needs that could be of economic importance to the citizens.
They described the idle fund as a glaring lapse in governance and financial management, stressing the need for stronger oversight to ensure public resources are used properly.
