How pension payment has been rising

The Treasury is seeking an additional Sh15.55 billion for lump-sum gratuity payments, raising the total budget to Sh85.76 billion.

Meanwhile, the monthly ordinary pension payments are projected to increase from Sh5.66 billion to Sh93.78 billion.

The government is staring at a crisis in the pension industry, so big it is, that it will likely shake the financial markets.

The perennial extension of state employees contracts beyond the set retirement age is nearing inflection point as nearly a third of the government workforce is staring at retirement and eventual payment of their pensions.

The Pensions Department at the National Treasury had in June 2023 announced plans to process 85,400 claims over a period of three years.

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