Kenya’s Treasury has issued a warning to pensioners, informing them that those who do not register on the e-pension portal by February 28, 2025, will be removed from the payroll.
This move is part of the government’s ongoing efforts to implement reforms recommended by the International Monetary Fund (IMF).
The goal is to reduce fraud and bring better control to the country’s pension system, which has been facing rising costs.
The pension bill in Kenya has been steadily increasing over the years.
This year alone, it is expected to rise from Sh140 billion to Sh186.2 billion.
This sharp increase has raised serious concerns within the Treasury about the sustainability of the pension system.
Fraud has been a major issue, with some individuals fraudulently claiming pensions they are not entitled to, while others have remained on the payroll despite no longer being eligible.
The government believes that by introducing the e-pension portal, it will be able to eliminate such fraudulent claims and ensure that only eligible pensioners receive their payments.
The e-pension portal will require pensioners to provide accurate information, such as their personal details, bank account information, and confirmation of their eligibility to receive pension payments.
By doing so, the Treasury hopes to create a more transparent system where only those who meet the necessary criteria are included.
The aim is to reduce waste and ensure that pension funds are being used efficiently, without being misallocated to individuals who should not be receiving them.
Pensioners who fail to register on the portal by the February 28 deadline may face serious consequences.
They will no longer receive their monthly pension payments, which could have a significant impact on their livelihoods.
Many pensioners rely on these payments as their primary source of income, so the removal from the payroll could leave them in a difficult financial situation.
The decision to implement these reforms comes as part of broader efforts to stabilize Kenya’s financial situation.
The IMF has been advising the government on ways to improve public sector efficiency and reduce public debt, and the pension system is a key area of focus.
By addressing the rising pension bill and tackling fraud, the government hopes to bring down its overall public expenditure and redirect funds toward more productive uses.
While the move is aimed at curbing fraud, it has not been without controversy.
Some pensioners have expressed concerns about the new registration process, citing issues with access to the internet or difficulty navigating the online system.
These challenges could prevent some pensioners from meeting the deadline, leaving them vulnerable to being removed from the payroll.
To address this, the Treasury has promised to offer support for those who may have difficulty using the portal, but it remains to be seen how effectively this will be implemented.
The government’s warning to pensioners is a critical step in its efforts to control the rising pension bill and reduce fraud within the system.
While the move is necessary to ensure that funds are being used appropriately, it also highlights the challenges faced by some pensioners in accessing digital platforms.
The Treasury must find ways to support those affected by this change, ensuring that the goal of reducing fraud does not result in unintended consequences for vulnerable individuals.
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