Former councillors, Kenya Railways pensioners and ex-KCC workers have renewed their plea for justice as pension disputes continue to clog the system, drawing the attention of Parliament and the National Treasury.
This prompted the Senate Labour and Social Welfare Committee to intervene in handling the complaints as thousands of retirees which has remained in limbo over delayed or denied payments.
However, Treasury Cabinet Secretary John Mbadi told the Senate Committee that he cannot implement a one-off Ksh200, 000 honorarium for former councillors who served less than four terms.
He explained that there is no statutory basis to back such payments. “As such, implementing the recommendations — particularly for the 11,919 councillors who served fewer than four terms — would amount to creating a new benefit structure without necessary statutory basis,” he said.
The Attorney General’s advisory issued in May 2023 reinforced this position, noting the absence of a legal instrument, possible violation of public finance principles and referencing Circular No. 13/94 which only qualifies councillors with 20 years of continuous service.
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Out of more than 11,900 former councillors, only 328 may qualify for pension and the rest may be directed to alternative social protection measures such as the Inua Jamii programme. Mbadi further warned of fiscal and legal risks, ghost workers and unremitted employee deductions. He stressed that some employers deducted pensions but failed to remit them, which he termed a criminal offence. Senators pressed for a forensic audit to confirm how many ex-councillors qualified and were still alive to file claims.
Kenya Railways pensioners also made submissions to the committee, with over 8,000 retirees demanding unpaid arrears. Their claims, estimated to be between Ksh574 million and Ksh1.6 billion, are complicated by the pension scheme’s asset portfolio, which has most resources tied in immovable property, leading to liquidity challenges.
Senator Seki Lenku called on the Retirement Benefits Authority to reconcile the discrepancies and conduct a forensic audit, with a report expected within two months.
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Former Kenya Cooperative Creameries workers, some of whom have waited more than 20 years since the 1999 receivership, also presented their grievances through legal representatives. However, Mbadi reminded the committee that a Court of Appeal ruling had absolved the government of legal obligations in their case.
The disputes highlight the complex intersection between law, finance and politics. Former councillors want recognition for their service, railway pensioners seek their arrears and ex-KCC workers continue to chase justice two decades later. Parliament has now signaled a stronger oversight role, with senators using summons and fines to push for accountability.
By Benedict Aoya
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