Older citizens, who have worked in government for years, risk delays in pension cheques as cash crunch delays remittances by counties and the national government.
According to the Controller of Budget (CoB) Margaret Nyakang’o county governments have not paid Kes85.05 billion to various pension schemes and institutions.
The National government reportedly failed to remit Kes7.8 billion as of June 2022 mean for the new superannuation pension scheme. Pension funds like CPF have began pushing government to pay them directly before disbursing money to counties.
As pension liabilities mount, the national government wants to use the Kenya Revenue Authority to collect the dues from counties. This might ferment clashes between the two levels of governments.
Currently, the Local Authorities Provident Fund (LAP-FUND) has not received Kes48.79 billion. Further, the Local Authorities Pension Trust Fund (LAPTRUST) is yet to get Kes32.95 billion. What’s more, Counties Pension Fund (CPF) wants Kes3.91 billion as per March 31, 2023.