State firms unpaid pension, PAYE hit Sh72 bn
The unremitted dues rose 17 per cent from Sh188.39 billion in June last year.
What you need to know:
- Several State corporations have fallen on tough times amid huge losses.
- Some 22 State-owned agencies posted losses of at least Sh1 billion each.
State entities have failed to remit a combined Sh72.96 billion in pension and pay-as-you-earn (PAYE) deductions amid a cash-flow crunch.
The revelations by the Parliamentary Budget Office (PBO) show that unremitted pension dues stood at Sh47.6 billion while PAYE was Sh25.3 billion as at the end of last month.
A number of State corporations and Semi-Autonomous Government Agencies (SAGAs) have fallen on tough times amid mounting losses for the commercial ones, mismanagement and waning financial support from the government.
Overall, the entities held Sh220.81 billion in unremitted PAYE, pension, contributions to the National Health Insurance Fund (NHIF), National Social Security Fund (NSSF), Sacco deductions, staff loan deductions and consumables in the period.
“The scenario points to general liquidity challenges in settling expenditure commitments as well as poor corporate governance, including weak or non-existent oversight between the respective State corporations /SAGAs Board and parent ministry/National Treasury,” PBO says.
Arrears for consumables and general supplies were Sh30.4 billion followed by Sacco deductions at Sh2.68 billion, Sh2.47 billion for staff un-remitted staff loan deductions and Sh407.36 million for the NSSF and NHIF (Sh80.92 million).
The unremitted dues rose 17 per cent from Sh188.39 billion in June last year indicating a combination of principal amounts and penalties.
Unpaid PAYE jumped by Sh5 billion between June last year and last month, marking it the biggest jump of all statutory deductions while that of pension rose Sh800 million in the period.
Some 22 State-owned agencies posted losses of at least Sh1 billion each in the 2022/23 financial year.
