National Treasury Cabinet Secretary John Mbadi has ordered county governments to clear billions in pension arrears, accusing governors of sabotaging the future of public sector retirees.
Speaking at the Devolution Conference in Homa Bay County on Friday, August 15, Mbadi revealed that counties collectively owe over Ksh126 billion in pension-related debts. These arrears, he explained, stem from both the pre-devolution era when defunct local authorities failed to remit contributions amounting to Ksh23.3 billion and the post-devolution period, where liabilities have ballooned to Ksh103.2 billion as of October 31, 2024.
In an emotionally charged address, Mbadi likened the situation to a felony, accusing county bosses of deliberately diverting funds meant for workers’ retirement benefits.
“If you are supposed to pay a salary to a staff member and part of that salary is supposed to go to his or her pension, there is no rationality in diverting it elsewhere. To be honest, this is a felony. You are killing the future of individuals,” he said.
The CS faulted governors for breaching their financial responsibilities and betraying public trust, warning that retirees risk being left destitute unless urgent action is taken. He announced that his ministry is developing a framework to enforce mandatory pension deductions and remittances across all 47 counties.
“Whatever it takes, we must start the culture of remitting all deductions to where they should be remitted,” Mbadi stressed, calling on both county and national institutions to verify and clear outstanding debts.
His remarks came just a day after ODM leader Raila Odinga urged that two-term governors be awarded with pension perks an irony that underscored the urgency of addressing the plight of ordinary retirees.
Despite his stern message, Mbadi praised devolution for its achievements over the past decade. He noted that shared revenues have enabled counties to expand infrastructure, improve healthcare, and deliver water projects, while also empowering marginalized regions through inclusive growth and job creation.
The directive now places governors under pressure to prioritize pension arrears, with thousands of retirees anxiously awaiting their dues.
