The monthly travels by retirees to and from Nairobi to chase their pensions may soon end should the government implement a 60-day pension-processing window.
This is after Parliament adopted the Pensions (Amendment) Bill, (National Assembly Bill No. 44 of 2022), which will expedite the processing and payment of pensions to two months.
Following the passage, the Speaker of the National Assembly is expected to present the Bill to the president for assent.
The Amendment establishes clear timelines for pension disbursement for state employees.
Government ministries and departments will now be required to submit necessary documents to the Pensions Department within 30 days of an employee's retirement.
Subsequently, the Pensions Department will have a 60-day window to process pension payments for retirees.
The bill sponsored by Kimilili MP Didmus Barasa comes at a time that the government is facing a crisis as almost a third of government employees are set to retire within the next two years.
Barasa noted that the amendments will reduce the time retirees have to wait for their pensions.
"This Bill that will ensure that people who retire in this country get their pensions in a period of not more than 90 days. Solving the current back log," said the MP.
It comes as a timely relief as a biting cash crisis has drastically affected the pension industry in the wake of assessments that the National Treasury could process an estimated Sh685 billion in pension benefits over the next three years.
The Parliamentary Budget Office (PBO), an entity that advises MPs on matters of economy, reported that unremitted pension dues stood at Sh47.6 billion while PAYE was Sh25.3 billion as of February.
Tigania West MP John Mutunga raised issue with the backlog of pension cases and pushed for adequate care for retirees.
"Requiring the pensions department to process in a timely manner will work and help clear the backlog," said Mutunga.
Homabay MP Peter Kaluma said Mmany retirees wait up to 20 years to receive their pensions.
Already, the National Treasury has set new caps for pension contributions by employers and their employees.
In a July 10 circular, PS Chris Kiptoo said employees would pay at least six per cent of their pensionable pay.
On the other hand, employers will be required to make not more than two times the employees' contribution.
Treasury further directed that no public servant would be entitled to pension claim until they hit 50 years.
There have been attempts by MPs to have pensions paid to parliamentarians who exit the service at 45 years of age.
Death in service and disability benefits would be provided through insurance policies purchased from insurance firms.
Kiptoo said the new circular overrides the one National Treasury issued in 2010, which required all public defined benefits schemes to convert to defined contribution schemes.