PBO puts Senate on spot over Sh115.9bn county pension debt

Budget office warns that workers' retirement benefits remain at risk

In its Budget Watch 2026 report, PBO says a multi-agency task force has already reconciled the liabilities and proposed a repayment framework, but its recommendations are yet to be implemented.

It cited the pending Senate action, saying the delay has allowed pension arrears to persist, exposed county governments to mounting liabilities and left employees uncertain about benefits earned during their working lives.

The report says administrative interventions alone cannot resolve the problem, calling for parliamentary consideration of the task force’s proposals and stronger enforcement of pension remittances.

The task force, formed in November 2024, proposed changes to pension calculations, structured repayment plans and legal reforms to ensure counties remit deductions collected from workers.

Source: The Star