The National Treasury did not release Sh23.78 billion for pensions by June 2024 due to a cash shortage. This failure affected over 259,222 retirees and 83,615 dependents, violating a key budget requirement.
The Treasury carried over unpaid pensions from the 2023-24 fiscal year to 2024-25, increasing the Consolidated Fund Services (CFS) budget to Sh2.08 billion. They also failed to pay Sh21.22 billion owed to retirees by June 2024 and did not contribute Sh2.56 billion to the Public Service Superannuation Scheme (PSSS).
In July 2024, 259,222 principal pensioners received Sh5.521 billion, and 83,615 dependents got Sh875.19 million. For the fiscal year starting in July 2023, the government allocated Sh189 billion for pensions and gratuities. This included Sh82.9 billion for ordinary pensions. Also Sh77.5 billion for commuted pensions, Sh24.46 billion for PSSS contributions, and Sh134.1 million for other schemes.
By March 2024, the Treasury had only provided Sh101 billion for pensions, well below the Sh129.21 billion reported expenditure. The Controller of Budget reported that the Treasury funded Sh48.2 billion for ordinary pensions out of Sh60.8 billion and Sh33.6 billion for commuted pensions out of Sh45 billion. PSSS contributions reached Sh19.2 billion, falling short of the Sh24.2 billion spent by March 2024.
Also read: Finance Bill 2024 Back in Focus
