Senators are demanding explanations for delays in pension disbursements under the Public Service Superannuation Scheme (PSSS), a defined contribution plan introduced in 2021 to replace Kenya’s older non-contributory system.

The PSSS requires both civil servants and government contributions to a retirement fund regulated by the Retirement Benefits Act.

The scheme promises timely pension payouts upon resignation, retirement, or death, with dependents entitled to benefits. However, thousands of retired teachers and police officers remain unpaid years after leaving service.  

Kisumu Senator Tom Ojienda exposed the crisis, asking Treasury Cabinet Secretary John Mbadi: “Could the Cabinet Secretary tell us why there has been a delay in processing pension funds for police and retired Teachers Service Commission officers under the Public Service Superannuation Scheme?”

Ojienda pressed further: “There seems to be a patent and palpable delay, yet we are still operating under the same system. When will they be paid?”

Mbadi acknowledged that the delays stem from incomplete policy and legal frameworks needed to operationalise the scheme.  

“The delay has been occasioned by a lack of policy guidelines, which we have now processed and are almost concluding. Once that is done, the pensions will be processed — likely within two weeks,” he said.

Bureaucratic bottlenecks

The scheme became effective in January 2021 following the Public Service Superannuation Scheme Act of 2012, transitioning all civil servants under 45 into the new system.  

Despite this, investigations reveal that former teachers and police officers who exited under the PSSS have been disproportionately affected by payment delays.

Sources indicate many retirees remain unpaid despite completing the required exit processes. Draft policy guidelines currently await approval at the State Law Office, contributing to bureaucratic bottlenecks.

“It has taken too long for the Treasury to pay us since the scheme was rolled out. We have waited for years. It is added misery to our lives,” said one affected retiree.

Mbadi cited poor coordination among government agencies, misplaced pension files, and corruption as contributing factors to the delays.

However, he firmly denied allegations that pension funds were being diverted elsewhere.

“I’m not aware of any instance where pension allocations have been reallocated. In fact, pension funds are among the most securely ring-fenced allocations,” Mbadi said.

The crisis has left many retirees in financial distress despite their years of service and contributions, undermining confidence in a system designed to bring efficiency and dignity to public servants’ retirement.