NAIROBI, Kenya- Time is ticking for Kenyan pensioners as the government rolls out a high-tech solution to modernize its pensions system.
Pensioners have until February 2025 to register on the newly launched self-registration portal or risk suspension from payroll, according to the National Treasury. Here’s what you need to know about the system shaking up pensions in Kenya.
Streamlining the Pension Process
The self-registration portal is part of a larger effort to eliminate inefficiencies that have long plagued Kenya’s pension sector.
National Treasury Principal Secretary Dr. Chris Kiptoo highlighted the new Enterprise Resource Planning (ERP) system, which aims to digitize and simplify pension claim processing.
Kenya’s pension sector holds an impressive Ksh 2 trillion in assets. Yet, only 26pc of the population benefits from a pension, a statistic the government hopes to change by improving transparency and reliability through technology.
“This e-registration portal is the first step in creating a seamless pension experience, addressing issues like lost records and incorrect balances,” Dr. Kiptoo explained during the launch.
Challenges in Claims Processing
Despite ambitious plans, the Treasury faced significant setbacks in the 2022/2023 financial year. Out of 28,422 planned claims, only 18,640 were processed due to delays in payments.
This inefficiency has fueled the push for digital transformation. The new system aims to ensure timely claims processing and reduce administrative hurdles that often leave retirees in limbo.
Beyond fixing existing issues, the government has its sights set on the informal sector. By developing a system tailored to workers outside formal employment, officials aim to increase pension coverage and promote long-term financial security for more Kenyans.
With the February 2025 deadline looming, the clock is ticking for pensioners to embrace the new system. By tackling inefficiencies and expanding access, the government is laying the foundation for a more inclusive and reliable pensions sector.
