Treasury to strip state firms role of remitting pension
Treasury CS Ukur Yatani makes his remarks during the launch of The 8th Corporate Plan for Kenya Revenue Authority (KRA) on June 24, 2021, at the KRA offices.
Photo credit: Francis Nderitu | Nation Media Group
Treasury seeking options for statutory deductions from the exchequer directly into the civil servant pension funds.
This comes as a task force formed by the National Treasury prepares to investigate the challenges facing public sector retirement schemes that to stockpile billions in unremitted arrears.
Pending pension bills by state agencies have risen sharply, disadvantaging thousands of retiring civil servants.
The Treasury has started exploring ways of remitting civil servants statutory deductions into pension funds as part of reforms to deal with the rising number of state firms failing to remit billions of shillings as retirement perks.
It is seeking options for statutory deductions from the exchequer directly into the civil servant pension funds — bypassing non-compliant agencies.
