Sharp Daily
No Result
View All Result
Wednesday, July 9, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

Govt entities fail to remit KES 73 billion Pension, PAYE dues

Christine Akinyi by Christine Akinyi
March 27, 2024
in News
Reading Time: 2 mins read

Kenya’s State entities find themselves ensnared in a financial quagmire, having neglected to remit a staggering sum of KES 73.0 billion in pension and pay-as-you-earn (PAYE) deductions.

This unsettling reality, unveiled by the Parliamentary Budget Office (PBO), underscores the severe cash-flow constraints confronting these agencies, intensifying apprehensions regarding mismanagement and dwindling financial sustenance.

As of the previous month’s closure, outstanding pension dues totaled KES 47.6 billion, with PAYE arrears amounting to KES 25.3 billion. The aggregate unpaid obligations, encompassing contributions to the National Health Insurance Fund (NHIF) and the National Social Security Fund (NSSF), portray a bleak tableau of financial disarray and governance deficiencies.

With outstanding payments for consumables, staff loan deductions, and other commitments reaching KES 220.8 billion, the gravity of the situation looms large.

RELATEDPOSTS

Securing your future: Why self-employed Kenyans need personal pensions

January 3, 2025

KRA implements revised PAYE deductions starting December 2024

December 23, 2024

The root causes of this financial turmoil are multifaceted. General liquidity constraints in meeting expenditure obligations, compounded by deficient corporate governance practices and inadequate oversight mechanisms, have precipitated this predicament.

The failure of state corporations and semi-autonomous government agencies (SAGAs) to honor their financial responsibilities not only imperils the well-being of employees but also erodes public trust and confidence in these institutions.

A closer examination of the data reveals an escalating trend of unpaid liabilities. The 17.0% escalation from KES 188.4 billion in June of the preceding year underscores the exigency of addressing this issue.

With unpaid PAYE soaring by KES 5.1 billion and pension dues escalating by KES 800.0 million within the same timeframe, the rapid deterioration of the situation becomes palpable.

Moreover, the Treasury’s report disclosing losses of at least KES 1.0 billion for twenty-two state-owned agencies in the fiscal year 2022/2023 compounds concerns.

The reliance on bailouts from the National Treasury has become unsustainable, prompting calls for divestment of the State’s interests in these entities to private investors. Escalating debt service obligations, burgeoning funding requisites for development endeavors, and mounting pressure from international financiers have constrained the Treasury’s capacity to extend comprehensive bailouts.

As Kenya confronts the repercussions of unpaid pension and PAYE dues by State entities, prompt action is imperative. Addressing systemic challenges, fortifying governance frameworks, and fostering sustainable financial practices are pivotal strides toward averting a deeper fiscal abyss.

Failure to decisively act risks exacerbating the financial frailty of these entities and intensifying the plight of employees reliant on their stability.

Previous Post

Nelson Havi seeks court intervention to halt High Court judge selection process

Next Post

FIFA threatens Kenya with sanctions over postponed FKF General Meeting

Christine Akinyi

Christine Akinyi

Related Posts

Business

Del Monte foods files for bankruptcy in USA

July 3, 2025
News

Private vs Public Pension Funds in Kenya

June 30, 2025
Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025
News

The real price of Israel – Iran Conflict for Kenya.

June 19, 2025
Economy

Resilient but strained: Kenyan firms speak out in May 2025 CEO survey.

June 19, 2025
News

Co-op Bank posts KES 6.9 billion profit in Q1’2025

May 16, 2025

LATEST STORIES

How Kenya is future-proofing its economy against illicit finance

July 9, 2025

The importance of Investment Policy Statements (IPS) for pension schemes in Kenya

July 4, 2025

Understanding Life Cover as an Additional Benefit in Retirement Benefit Schemes

July 4, 2025

Del Monte foods files for bankruptcy in USA

July 3, 2025

Lessons from the Kuramo-TransCentury fallout

July 3, 2025

Private vs Public Pension Funds in Kenya

June 30, 2025

The mechanics of currency manipulation

June 27, 2025

Understanding how to access your pension savings in Kenya.

June 27, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024