The Treasury will spend nearly a third more on paying pensioners in the fiscal year beginning July, with the actual total amount to be spent for the first time expected to exceed Sh100 billion.

According to estimates released to Parliament, the total pensions and gratuities paid will amount to Sh119.19 billion, from revised estimates of Sh92.49 billion of the fiscal year ending in June. This is Sh26.7 billion or 29 percent higher.

It underlines the extent of liabilities the public has to carry as a result of delayed implementation of the contributory scheme mooted by the State nearly a decade ago.

The 2019/20 budget had initially indicated the total spending on pensions and gratuities would be Sh108.6 billion, but slow processing of applications due to an outdated information management system has led to a shortfall in the amount expected to be paid by June, the Treasury said.

“[Among] the challenges encountered in the implementation of the budget during the period under review are…the slow pace in operationalisation of pensions contribution scheme, slow Pension Management Information System,” it said.

The Treasury will spend nearly a third more on paying pensioners in the fiscal year beginning July, with the actual total amount to be spent for the first time expected to exceed Sh100 billion.

According to estimates released to Parliament, the total pensions and gratuities paid will amount to Sh119.19 billion, from revised estimates of Sh92.49 billion of the fiscal year ending in June. This is Sh26.7 billion or 29 percent higher.

It underlines the extent of liabilities the public has to carry as a result of delayed implementation of the contributory scheme mooted by the State nearly a decade ago.

The 2019/20 budget had initially indicated the total spending on pensions and gratuities would be Sh108.6 billion, but slow processing of applications due to an outdated information management system has led to a shortfall in the amount expected to be paid by June, the Treasury said.

“[Among] the challenges encountered in the implementation of the budget during the period under review are…the slow pace in operationalisation of pensions contribution scheme, slow Pension Management Information System,” it said.

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