NAIROBI, Kenya – The government owes retirees over Sh108 billion in unpaid pensions and gratuities, leaving many former public servants in dire financial straits, Controller of Budget Margaret Nyakang’o has revealed.
Speaking during a presentation to the Public Debt and Privatisation Committee, Nyakang’o warned that delayed disbursements continue to hurt thousands of pensioners — including teachers and police officers — despite Sh131.92 billion in claims being processed during the current financial year.
As of March 2025, only 52 per cent of the Sh223.15 billion required for pensions had been paid out.
The Controller noted that an additional Sh11.66 billion for the Public Service Superannuation Scheme remains unfunded, while a Sh23 billion shortfall from the 2023/24 financial year was carried forward, worsening the situation.
“Retirees are suffering. There is a huge amount of money owed to them, yet they have served this country their whole lives,” Nyakang’o said.
MPs also expressed concern over the growing backlog, with Emuhaya MP Omboko Milemba noting that some retirees are dying before receiving their dues.
During the first quarter of the 2024/25 financial year, the Treasury processed Sh32.14 billion in pension payments — a 4.23 per cent rise from last year — but still fell short by Sh23.65 billion.
Rising pension obligations, coupled with declining tax revenues and mounting debt repayments, are straining the government’s finances and slowing progress on key development projects like roads, housing, and energy infrastructure.
