Kenya. Pension crisis as 50,000 government staff retire
The retirement of about 50,000 civil servants is burdening taxpayers after the pension bill jumped by 63.03 percent or Sh10 billion in the first four months to October as the Treasury raised the red flag over the rising expense.
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Treasury data shows that public pension expenses stood at Sh27.8 billion in the four months to October compared to Sh17.06 billion a year earlier — making it the fifth largest Budget item behind debt repayment, teachers’ pay and police salaries.
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The rise came in a period when more than 50,000 public servants had retired between March 2018 and September while another 10,300 are expected to go home in the remaining seven months to the end of the financial year.
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The pension expenses triggered by the mass retirements, which have also brought home a job crisis in the ageing civil service, have joined debt expenses in denying the State cash it requires for critical spending like roads, health and water supply.
The Treasury has issued an alert over the mounting pension bill, warning that the expense is a risk to the Budget.
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