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{
    "id": 1569885,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1569885/?format=api",
    "text_counter": 97,
    "type": "speech",
    "speaker_name": "Hon. John Mbadi",
    "speaker_title": "The Cabinet Secretary for National Treasury and Economic Planning",
    "speaker": null,
    "content": "Mr. Speaker, Sir, part (c) is on ensuring adequate budgetary allocation for pension payments. The National Treasury is committed to ensuring that pension obligations are fully funded and liquidity challenges are minimized. To achieve this- (1) There is privatization of pension payments: Pension payments are treated as a first charge obligation in the national budget, ensuring they are allocated sufficient funds. Therefore, it is in the Consolidated Fund Service (CFS) as a first charge. (2) Addressing carryovers and cash flow constraints: Outstanding pension obligations due to cash flow challenges are prioritized in the subsequent budget cycle. Like in the Financial Year 2023/2024, we carried forward Kshs23 billion as pension unpaid at the end of the financial year. That became the first charge and was paid in the Financial Year 2024/2025. However, that has also put a strain on our Financial Year 2024/2025 finances. I am happy to report that as we speak, between 30th April and 21st May, 2025, it would interest you, Mr. Speaker, Sir, and hon. Members that within those three weeks, we paid a total of Kshs17.4 billion to pensioners. The only balance we have to pay is only Kshs16.9 billion. Compared to last year when we carried over Kshs23 billion, up to date and the year is not yet over, we have Kshs16.9 billion to pay. I also believe that we are going to do much better than last year, although, we should do 100 percent. (3) Timely issuance of monthly pension: Again, that is one of the steps that we are taking. (4) Regulatory framework for pension administration: The National Retirement Benefit Policy approved in November, 2023, together with the provisions of the Constitution provide the foundation for modernizing and aligning pension laws with The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."
}