Unremitted pension deductions hit Sh85bn in blow to retirees
Public institutions such as universities, county governments and State agencies are perennial non-depositors despite the threat of penalties...
✨ Key Highlights
Unremitted pension deductions in Kenya have surged to Sh85.2 billion by the end of December 2025, a significant increase that jeopardizes the retirement savings of workers.
- The total unremitted amount has grown substantially, with over Sh73.1 billion representing contributions overdue by more than 30 days.
- The Retirement Benefits Authority (RBA) is spearheading efforts to curb this trend, as the issue is particularly acute in public institutions.
- New proposals, including empowering the Kenya Revenue Authority (KRA) with stronger enforcement powers and holding CEOs personally liable, are being considered to tackle persistent defaults.
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Ex-CBK Governor Details Reforms After 1980s Financial Crisis - August 2026
Former Central Bank of Kenya Governor Eric Kotut has detailed the significant regulatory reforms implemented to stabilize Kenya's financial sector following the 1988 banking crisis, which required major institutional changes to restore confidence. He revealed that Kenya was compelled to liberalize its economy following the 1992 General Election due to a freeze in funding from development partners. At the same time, unremitted pension deductions in Kenya have surged to Sh85.2 billion by the end of December 2025, a significant increase that jeopardizes the retirement savings of workers.
