Nairobi – In a rare moment of candour before Parliament, Kenya’s Treasury Cabinet Secretary John Mbadi on Tuesday admitted that the government continues to pay pensions to people who are no longer alive.
Appearing before the Senate to answer tough questions on delayed pension payments and corruption within the system, Mbadi acknowledged what many had long suspected: ghost pensioners are draining public funds.
“We are alive to the fact that some pensioners who are no longer alive continue to receive payments,” said Mbadi. “Through biometric verification and our new e-pension system, we are working to stop this.”
Pension System Under Fire
Senators had summoned the Cabinet Secretary to explain what they called “a deeply broken system”, citing chronic payment delays, poor record-keeping, and suspected fraud in the administration of pensions.
Mbadi laid the blame partly on late submission of retirement documents, incomplete files, and cash flow constraints. But he also pointed to systemic failures that have allowed ghost beneficiaries to remain on the payroll, sometimes for years.
Tech Overhaul on the Way
The Treasury, he said, is rolling out a digital overhaul to address the rot. This includes biometric verification, integration with the National Savings Registry, and a self-service portal that would allow pensioners even in rural areas to access services from home.
“We’re working with commercial banks and financial institutions to monitor dormant pension accounts, flag suspicious activity, and prevent unauthorised withdrawals,” Mbadi said.
He promised that the new system designed to eliminate manual processing and improve accuracy would be up and running by 1 July 2025. At its core is an enterprise resource planning platform that links pension data to key government databases, including death records.
“This will allow us to move people seamlessly from the active payroll to the pension payroll,” Mbadi added.
Money Still Stuck
Despite the reforms, money remains tight. Mbadi said the Treasury had disbursed KSh17.4 billion in pension payments by the end of May. But KSh16.9 billion remained unpaid. Last year, the figure carried over into the next budget cycle was higher KSh23 billion.
“I think we are going to do much better than last year, although we should aim for 100%,” he said.
To prevent similar rollovers in the next fiscal year, Mbadi assured Senators that pensions are now treated as a first charge in the national budget a legal priority over most other expenditures.
Parliamentary Watchdog Steps In
Asked about accountability for past failures, Mbadi said he would act based on findings from Parliament.
“As the Auditor General has flagged it out… I would only wait for the parliamentary committee to conclude its work, make recommendations… and then action can be taken,” he told the House.
To speed up verification of claims, 18 new pension officers have been deployed to major agencies, including the Teachers Service Commission.
Employers are also being reminded to file retirement notices early. Under current rules, notices should be issued one year ahead of retirement, with claim documents submitted at least nine months in advance.
Behind the Numbers
Kenya’s pension crisis affects thousands of former civil servants many now elderly and vulnerable. Access remains a major challenge, especially for those in rural counties, where digital literacy and internet access are limited.
Mbadi said Huduma Centres will help fill the gap, offering pension services for those unable to access the online platform.
“Even at the comfort of their homes, they can access almost all the services they need,” he said.
The cleanup, if successful, could mark a turning point in public trust. But for many retirees still waiting for their pay, that trust has long worn thin.
