‘Buying soap is a challenge’: The plight of ex-civil servants struggling over pension disbursement delay

On the outskirts of Kisii town, 62-year-old Eunice Moraa is a worried woman. Since her retirement in June 2022, the mother of three has been living hand to mouth.

Eunice had hoped that her lump sum pension would secure a livelihood for her and her children post-retirement, but for the last year, this kitchen garden has instead been her only hope for survival as she has accumulated debts which she used to settle fees for her children.

“Nilikuwa naendelea kutarajia ya kwamba nikichukua hiyo mikopo hizo pesa zitakuja alafu sasa nitaweza kulipa madeni sina wa kunisaidia nichune mboga zile ziko hapo kwa shamba nipeleke niuze ndio angalau ata nitapata kasabuni ndio watoto wanaweza kutumia,” Moraa tells Citizen TV.

A similar predicament faces 64-year-old Patrick Chumba from Kitale. He has fallen back to farming and often doing menial jobs in order to fend for his 4 children.

Since his retirement, he is yet to receive any money under the pension scheme for retired civil servants.

“Mimi sasa nimebaki tu nalima hapa na pale naweka mahindi saa ingine mboga lakini ni ngumu ata shilingi pekee sijapata mpaka saa hii hiyo pesa ata imekuwa mingi sijui ata imefika ngapi,” Chumba says.

Whereas the majority are relying on monthly pension payouts, the government is yet to pay them gratuity or lump sum.

In correspondence seen by Citizen TV, the Treasury has not released full capitation for the pension of retired civil servants since September 2022.

The current accrued balance stands at 25 billion shillings after 7 billion shillings were released in the last two weeks. Upon retirement, civil servants are entitled to their pension, paid out as a lump sum of the accrued pension and the interest that the fund will have earned.

The second option is where a retired civil servant receives a third of the funds as a lump sum and the balance paid out as monthly income until the funds are depleted. However, the delay in disbursement from the Treasury has caused anguish for retired civil servants

“Vile uchumi imeenda hivi mtu ukilala hakuna usingizi juu ukilala hivi unaanza kufikiria mtoto atapiga simu mami nataka pesa ya nyumba nataka pesa ya kutumia siwezi kufanya mtihani pesa inahitajika nitatoa wapi hizo pesa,” Moraa says.

More than 20,000 civil servants retire annually, a number that is burdening taxpayers, with the Treasury seemingly raising the red flag over the rising expenditure amid a cash squeeze.

The pensions department paid some 54.8 billion shillings to retired civil servants in the period ending March 2023 compared to 95.4 billion in the year 2021-2022, reflecting a drop of 38.71 per cent.

For now though, until the money comes Patrick and Eunice, like thousands of other retired civil servants still hang on to hope that the government will release the funds that they had been diligently remitting during their time in service in order to sustain their livelihoods.