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Treasury Moves to Digitise Pension System to End Delays, Curb Fraud

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NAIROBI, Kenya – The government has launched a major overhaul of pension services for retired civil servants, shifting all processing to a fully digital platform in a bid to eliminate delays, cut bureaucracy and protect retirees from fraud.

The National Treasury is rolling out the electronic Pension Management Information System (e-PMIS), a platform that will allow pensioners and officials to submit, track and approve claims in real time.

The move is expected to end years of delays blamed on manual, paper-based processes that require files to pass through multiple offices, often leading to lost documents, backlogs and financial hardship for retirees.

Once fully implemented, pensioners will be able to file claims online, receive automated approvals and monitor payments remotely, significantly reducing the need for physical visits to government offices.

Treasury officials say the system will also be integrated with the Integrated Financial Management Information System (IFMIS) to ensure seamless and timely payments.

“The aim is to transition retirees seamlessly from earning a salary to receiving pension benefits without going through rigorous processing steps,” National Treasury Cabinet Secretary John Mbadi said.

The Treasury currently manages more than 300,000 registered pensioners and receives about 20,000 new claims every year.

Backlogs have been persistent, largely due to repeated manual verification and misplaced paperwork.

To support the transition, the Treasury is working closely with the Public Service Commission (PSC) to train officers across ministries, departments and agencies on the new system.

“This integration will improve efficiency, transparency, and timeliness in the processing of benefits. Training and sensitisation of officers are ongoing to ensure full adoption by MDAs,” the PSC said in a statement.

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The digitisation drive follows growing concern over pension fraud, particularly targeting retirees receiving lump-sum payments.

Migori Senator Eddy Oketch last year warned that fraud syndicates were accessing pensioners’ bank accounts and siphoning off funds shortly after payouts.

He cited the case of a retired teacher who lost Sh2.4 million deposited into an account at a leading bank.

“We are witnessing a disturbing trend where fraudsters are increasingly targeting retirees and defrauding them of their pension benefits,” Oketch said.

Treasury officials believe the shift to a paperless pension system will help close loopholes exploited by criminals, while also accelerating payments and improving accountability.

Last year, CS Mbadi announced plans to fully digitise pension administration as part of broader efforts to fight corruption, reduce bureaucracy and modernise public service delivery.

Anthony Kinyua
Anthony Kinyua
Anthony Kinyua brings a unique blend of analytical and creative skills to his role as a storyteller. He is known for his attention to detail, mastery of storytelling techniques, and dedication to high-quality content.

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