Public Investments Principal Secretary Cyrell Wagunda has called for strict compliance and greater accountability in the management of pension deductions, warning that the government will not tolerate delays or misuse of workers’ retirement contributions.
Speaking through Principal Administrative Secretary Arthur Osiya, from the Executive Office of the President, during the Public Service Superannuation Fund (PSSF) Employers’ Conference on Wednesday, Wagunda emphasized that pension deductions are “earnings belonging to employees which must be treated with the highest level of accountability and integrity.”
The conference, which brought together accounting officers and institutional leaders responsible for implementing the pension scheme, was presided over on behalf of the Chief of Staff and Head of Public Service, Felix Koskei, by Osiya.
Osiya reiterated the government’s firm stance on pension remittances, stating that “pension deductions are not discretionary but earnings belonging to employees” and warning that authorities “will not countenance the continuous withholding, diversion or delayed remittance of these funds.”
He urged accounting officers to ensure full legal compliance and uphold obligations to employees and pension schemes, reinforcing the government’s push for tighter financial discipline within public institutions.
The conference also marked the official launch of the Pension Administration System (PAS), a new digital platform designed to modernise pension management.
The system is expected to improve operational efficiency, enhance member access, and automate key pension administration processes.
Osiya described the system as a milestone in transforming pension delivery, noting that it had undergone “rigorous testing and pilot implementation,” with feedback from participating institutions used to improve its functionality and user experience.
Wagunda explained that the reforms reflect a long-term, evidence-based process, adding that actuarial studies over the past two decades showed the traditional pension model had become increasingly costly and exposed the government to long-term liabilities.
He explained the shift toward a more structured and digitised system would help ensure the sustainability of pension obligations while improving service delivery for civil servants.
The Public Service Superannuation Fund Board Chair, Ambassador Hussein Dado, reported significant growth in the scheme since its establishment five years ago, as membership has risen from 330,318 to 517,236 as of March 2026.
He added that the fund’s value now stands at Sh322 billion, making it the second-largest pension scheme in Kenya.
Dado also announced improved financial performance, stating that the fund declared an interest rate of 17.68%, up from 11.9% in the previous financial year.
He attributed the growth to employer compliance and increased confidence in the scheme, noting that “the Government is up-to-date with their remittances due to each of our members.”
The PSSF Board Chair further highlighted that more state agencies are expressing interest in joining the fund, reflecting trust in its management and performance.
Senior government officials and chief executive officers of independent commissions also attended the conference, which focused on strengthening pension governance, improving compliance, and accelerating digital transformation in public sector retirement systems.