This archive report was first published on 19 July 2020.
Government Retires Over 2,000 Civil Servants Amid Cash Crunch ¶
As the government faces a 'perfect storm' of increased spending demands, it has begun to retire workers, with an estimated 2,136 retiring public servants applying for their pension dues in the last one month.
According to the National Treasury, the Pensions Department has received names of workers from government ministries and State departments that have put in claims for their pensions and gratuities between June 1 and July 3 this year.
The government's wage bill is expected to come down substantially, but this will increase what the government spends on retirees, pushing the cash-strapped State to the wall.
Despite the expected decline in tax revenues due to the Covid-19 pandemic, Treasury is expected to religiously pay its retired workers' pension, which is the first-charge expense and cannot be delayed.
Monthly pension to civil servants, including 603 retired teachers, is expected to gobble up Sh36 billion in the current financial year, with pensions falling under the Consolidated Fund Services (CFS) together with repayment of public debt, salaries and allowances to constitutional office holders, and miscellaneous services.
The Ministry of Education leads the pack in civil servants claiming pensions, with the Teachers Service Commission (TSC) having the highest number of workers claiming pension in the period, contributing 604 members which translated to 26 per cent of claimants.
The Health ministry came second with the highest number of retirees in a single month, with 565 members of the ministry claiming their pensions, hurting a bleeding sector that is understaffed.
Other ministries affected include the Ministry of Interior and Coordination of National Government, the Agriculture ministry, and the National Treasury itself, which has 48 members of staff who have run their time and are now awaiting their pension.
