Kenya Government Withholds Sh1.2 Billion in Civil Servants' Pension Funds

A recent audit revealed Kenya's government failed to remit Sh1.2 billion to the Public Service Superannuation Fund by end of August, following partial payments on over Sh10 billion in prior arrears. This shortfall eroded returns on funds deducted from civil servants' paychecks, amid broader issues like overpayments to ghost pensioners.

Frustration builds as State House renovations cost Sh10.7 billion since 2015, while upcoming NSSF hikes from February 2026 will raise contributions for higher earners from Sh4,320 to Sh6,480 monthly. Treasury shows partial progress but has not responded directly, leaving retirees anxious about pension security amid drought aid needs and debt pressures. 

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