SENATE COMMITTEE TO SEEK EXTENSION FOR PENSION TASKFORCE TO ADDRESS BILLIONS IN ARREARS

SENATE COMMITTEE TO SEEK EXTENSION FOR PENSION TASKFORCE TO ADDRESS BILLIONS IN ARREARS

29th November 2025
Malindi, Kilifi County

The Senate Select Committee on County Public Investments and Special Funds (CPISFC) met with the Multi-Agency Taskforce on pension arrears over the weekend to review progress on resolving the ballooning pension debt owed by county entities.
The Committee originally recommended the formation of this Taskforce after discovering massive discrepancies between the debt figures reported by County Governments and those claimed by Pension Schemes. 
Observations indicated that liabilities had risen to over Ksh 80 billion, largely driven by accrued penalties and interest. Consequently, the Taskforce was mandated to reconcile these conflicting figures, harmonizing principal amounts with accrued penalties and to develop a concrete payment framework to clear the outstanding debts that currently jeopardize the financial security of retired county staff.
During the briefing, Committee Chairperson, Vihiga Senator Godfrey Osotsi, emphasized the need for a comprehensive report that captures data from all devolved units, particularly the major defaulters.
"I will be seeking an extension from the house (Senate) so that you can firm up the report and include/ try to reach out to Nairobi and Mombasa Counties, which are yet to meet the task force," Chair Osotsi stated.
Nairobi and Mombasa counties have previously been identified as having the highest pension liabilities. The Committee intends for the Taskforce to finalize a formula for payment that is agreeable to the National Treasury, the Council of Governors, and the Pension Schemes to permanently settle these historical pending bills.