Workers face old age poverty as employers default pension

Companies battling tough economic times and government entities crippled by budgetary constraints increasingly reallocate employee pension deductions to cover immediate operational costs.

giovedì 9 luglio 2026 New tab

138 words~1 min read

Retirement Benefits Authority says unremitted contributions have increased to Sh84 billion in 2025 from Sh69 billion in 2024. [Courtesy]

Kenyan employers are increasingly failing to remit pension deductions made from employee pay, as unremitted pension contributions increased to Sh84.16 billion in 2025, driven by a double blow of private-sector financial distress and public-sector cash crunches.

Many firms are now in breach of both the retirement benefits and employment laws that require employers to remit deducted pay within 15 days and term withholding of wages as an illegality.

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