This archive report was first published on 23 September 2019.
Published on September 23, 2019, the Kenyan government's failure to implement a contributory pension scheme has led to unsustainable pension costs.
The government's pension costs have more than doubled in the past decade, from slightly less than Sh40 billion annually to Sh104.4 billion, and are expected to triple to Sh126 billion next year.
Despite raising the retirement age to 60 years from 55 in 2010, the government has not implemented pension reforms to ensure public servants contribute to their retirement savings.
This has resulted in a growing burden on the government, with 'ghost pensioners' contributing to the problem.
The government must reform the pension system to make it sustainable and reduce expenditure.
