Pain and loss as KEMRI retirees recount deaths over unpaid pensions before Senators

A painful reality unfolded before senators on Thursday as former Kenya Medical Research Institute workers spoke of watching their colleagues die one by one without ever receiving their pensions, turning what should have been a secure retirement into years of waiting, loss and quiet suffering.

The retirees, appearing before the Senate Committee on Labour and Social Welfare at Bunge Tower on Thursday, said the crisis has robbed them not only of income but of dignity, describing a system that failed those who once served the country in critical health research roles.

Lawyer Joe Mwariri, representing the group, told the committee the pensioners had every reason to expect timely payment after years of service. “These are individuals who worked diligently under the legitimate expectation that upon retirement they would receive their pensions promptly and in full,” he said. He added that one of the petitioners had died just two days earlier, still waiting for his dues.

The scale of the crisis emerged in stark terms, with at least 47 retirees having died without payment. More than 350 others are still alive, many battling illness and financial hardship as the delay drags on.

“We are over 350 right now, but 47 of us have gone to be with their Maker — minus their pension,” said pensioner Gabriel Okondo.

At the heart of the dispute is a Defined Benefit pension scheme set up in 1983 through a trust and later closed to new members in 2008. Senators were told the fund has since collapsed and currently holds no assets.

“That scheme, as we speak today, has zero assets,” said Charles Machira, Chief Executive of the Retirement Benefits Authority.

The funding gap now stands at about Sh 2.68 billion, driven by years of unpaid contributions and the rising cost of accrued benefits. A forensic audit also pointed to the loss of about Sh 537 million through misappropriation by trustees between 1997 and 2008. Only Sh 75 million has been recovered so far through anti-corruption efforts.

According to the Retirement Benefits Authority, both the loss of funds and failure by the sponsor, KEMRI, to meet its obligations pushed the scheme into insolvency.

To resolve the matter, the regulator is pushing for statutory liquidation, saying it offers a path to recover funds and hold those responsible to account.

“The only way to cure this matter is through liquidation,” Machira said, maintaining that the process is meant to unlock recovery rather than shut out beneficiaries.

But the proposal drew concern from pensioners, who argued it could leave them worse off. They cited a National Treasury circular dated 10 July 2024 directing that closed defined benefit schemes should continue operating until the last beneficiary is paid.

“All closed DB schemes shall remain operational until payment of the last beneficiary,” they said, questioning why liquidation is being considered despite the directive.

Machira explained that liquidation under the Retirement Benefits Act is intended to allow pursuit of the sponsor and its assets so that members can eventually be paid.

He noted that the alternative would be a bailout by the National Treasury, but said past attempts through remedial action plans have not delivered a solution.

Senators raised concerns over the slow pace of action and pressed regulators on why retirees are yet to see results despite years of interventions.

The committee resolved to summon KEMRI management, the National Treasury and the Ministry of Health for further discussions in the coming weeks.

For the retirees, however, time remains the biggest concern, as each delay continues to deepen the human cost behind the stalled pensions.