The Kenyan government plans to overhaul its pension system through a comprehensive biometric registration of all state pensioners scheduled for January to March 2024.
Treasury Principal Secretary Dr. Chris Kiptoo announced this initiative to “sanitize” the pensioners’ register, aiming to guarantee that payouts reach legitimate beneficiaries. The move responds to the government’s challenge of rising pension costs, projected to reach KES 189.0 billion in the current financial year.
During his address to the National Assembly Public Debt and Privatization Committee, Dr. Kiptoo disclosed that this initiative is part of broader efforts to enhance the pensions payment system. With pension liabilities expected to exceed KES 200.0 billion by the financial year 2025/26, the urgency of establishing an efficient and fraud-proof system cannot be overstated. The biometric registration is intended to establish a reliable reference database crucial for cross-verification and preventing unauthorized disbursements.
The Pensions Department has proactively sought data on registered deaths from 2003 to 2023 from the Civil Registrations Department. This data cross-matching is vital for cleaning up the pensions payment database, removing deceased individuals, and preventing wrongful payouts.
Furthermore, the Treasury is revamping the Pensions Management Information System. The tender for an enterprise resource planning system, which closed on September 26, 2023, is currently under review. This new system is expected to integrate with the Kenya Revenue Authority, the Government Human Resource Information System, and the Integrated Population Registration System, streamlining the entire process.
In an intriguing revelation, Dr. Kiptoo defended ongoing pension payments to Europeans and Asians who left Kenya’s public service post-independence. He clarified that these payments are part of the Public Officers’ Pensions (Kenya) Agreement of 1977, emphasizing that proof of life certification and monthly mortality screening are conducted for UK-based pensioner beneficiaries. The current year’s pension payments to the UK are set at KES 42.0 million, a significant reduction from KES 150.0 million in the previous year.
As Kenya undergoes these changes, the biometric registration represents a substantial stride towards a more transparent and accountable pension system, ensuring that funds are utilized for their rightful purpose and beneficiaries.
