{"count":1608389,"next":"http://info.mzalendo.com/api/v0.1/hansard/entries/?format=json&page=155170","previous":"http://info.mzalendo.com/api/v0.1/hansard/entries/?format=json&page=155168","results":[{"id":1569882,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1569882/?format=json","text_counter":94,"type":"speech","speaker_name":"Hon. John Mbadi","speaker_title":"The Cabinet Secretary for National Treasury and Economic Planning","speaker":null,"content":" Thank you, Mr. Speaker, Sir. I will take three minutes to go through the response. I will not read it verbatim. On measures being implemented to address delays in pension processing and the transition to a digitized pension system, there are a number of steps we are taking for comprehensive review which include- (1) Timely submission of retirement notices: Employers are required to notify employees of retirement at least one year in advance and to submit pension claims to the Pension Department nine months before the official retirement age. (2) Verification and documentation: Pension payments are contingent on complete and accurate documentation from retirees and employers and complete submission of disputes and litigation. (3) Processing at the Pension Department: Once a complete pension claim is received, the department processes it within 90 days as stipulated in the National Treasury Citizens Service Delivery Charter. Then we have exchequer releases, which is also another challenge. Payment of pension gratuities depends on the availability of funds, which is influenced by national revenue inflows. Therefore, to improve efficiency, these are the measures that we have taken- (1) Deployment of pension officers to key Ministries, Departments and Agencies (MDAs): We have made sure that key MDAs, like the Teachers Service Commission (TSC) and others have pension officers. For example, the National Treasury has deployed 18 pension officers to the TSC to expedite the verification and submission of the pension claims. (2) Strict enforcement of early submission policies: MDAs are mandated to submit pension claims nine months before an officer's retirement date. (3) System enhancements and technical support: The Pension management information system is undergoing significant upgrades to reduce manual interventions, improve efficiency and also enhance data security. (4) Review of the pension legal framework is also being undertaken to align with emerging needs and improve the sustainability and efficiency of pension payments. (5) The Cabinet has approved the National Retirement Benefits Policy, which was approved on 3rd November, 2023. This Policy aims to harmonize retirement benefits, improve governance and enhance sector growth. (6) Public awareness and sensitization is also ongoing with workshops being conducted and sensitization programmes on retirement. (7) Recruitment of additional pension officers to enhance processing capacity. The Treasury recruited additional pension officers in 2021, followed by six deputy directors in 2024, with specialized expertise in pension administration."},{"id":1569883,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1569883/?format=json","text_counter":95,"type":"speech","speaker_name":"Hon. John Mbadi","speaker_title":"The Cabinet Secretary for National Treasury and Economic Planning","speaker":null,"content":"(8) The re-engineering of the pension management information system: The Treasury has on-boarded a contractor to develop an enterprise resource planning solution, which fully digitizes pension and with that, online claims submission will be done, self- service portal, automated approvals and the integration with key Government databases is also being addressed. 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."},{"id":1569884,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1569884/?format=json","text_counter":96,"type":"speech","speaker_name":"Hon. John Mbadi","speaker_title":"The Cabinet Secretary for National Treasury and Economic Planning","speaker":null,"content":"Mr. Speaker, Sir, on part (b) of the question, the system is expected to be fully rolled out by 1st July, 2025. As I stated earlier, this will help us to automatically transit those who are from the payroll to the pension payroll. On addressing corruption and bribery in pension administration, we are doing the following- (1) Strict pension verification procedures are being instituted. This will help us reduce errors, fraudulent submissions and unauthorized payments. (2) Collaboration with financial institutions, like the case that Sen. Eddy Oketch spoke to earlier. We are working with commercial banks and financial institutions to monitor dormant pension accounts, flag suspicious activity and prevent unauthorized withdrawals. (3) Open plan office layouts. The Pension Department has restructured its office setup to enhance transparency and accountability, reducing opportunities for unethical conduct. (4) Decentralization of pension services through Huduma Centers for the retirees to access services without unnecessary bureaucracy or middlemen. (5) Integration with the National Death Registry: The Treasury is integrating biometric verification with the National Civil Registry to detect deceased pensioners in real time and prevent continued payments to non-existent beneficiaries. Biometric pension verification and e-pension system has also been implemented. There is also collaboration with investigative agencies to deter cases of corruption."},{"id":1569885,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1569885/?format=json","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."},{"id":1569886,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1569886/?format=json","text_counter":98,"type":"speech","speaker_name":"Hon. John Mbadi","speaker_title":"The Cabinet Secretary for National Treasury and Economic Planning","speaker":null,"content":"contemporary economic and demographic realities. In line with this, the Government is implementing key regulatory reforms, which are as follows- The legal reforms we have on the scope are the Task Force on Public Service Pension Legal Framework, formally appointed on 17th September, 2024 which is tasked with reviewing existing pension laws and identifying gaps that hinder effective service delivery. Then, there is legislative and regulatory amendments. The Task Force will propose comprehensive reforms to enhance efficiency. We are also benchmarking with international standards. The review will incorporate lessons from countries with well-established pension systems to ensure a robust and globally competitive pension framework. Secondly, re-engineering the Pension Management Information System. I have talked about this; eliminating paper-based processes, empowering pensioners with self- service capabilities, accelerating processing through automated approvals, enhancing security and accuracy through system integration. Mr. Speaker, Sir, the key here is automation. If you automate Pension systems, as we have indicated, then you will solve a number of these issues. I have also said that from 1st July, we are onboarding the system and it will enhance efficiency."},{"id":1569887,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1569887/?format=json","text_counter":99,"type":"speech","speaker_name":"Hon. John Mbadi","speaker_title":"The Cabinet Secretary for National Treasury and Economic Planning","speaker":null,"content":"The final one is the reforms to enhance financial sustainability; transition from defined benefits to defined contribution. To enhance sustainability, the defined benefits scheme cannot work. This is because the life expectancy is going up and with limited resources made available through budgetary provision, we cannot sustain this. Therefore, the new system of Public Service Superannuation Scheme is going to help us a lot in addressing these pension challenges going forward because we are going to have the defined contribution system that is already rolled out. This has been done out of actuarial calculations and it is a better system. Mr. Speaker, Sir, in conclusion, the National Treasury recognizes and values the contribution of retired civil servants and remains steadfast in its commitment of ensuring that their pension benefits are processed efficiently, transparently and without undue delays. The measures outlined above are transformational and will ensure that Kenya’s Pension administration is modernized, digitized and aligned with the international best practices. I submit."},{"id":1569888,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1569888/?format=json","text_counter":100,"type":"speech","speaker_name":"Hon. Kingi","speaker_title":"The Speaker","speaker":null,"content":" Hon. Ojienda, you may now ask your two supplementary questions."},{"id":1569889,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1569889/?format=json","text_counter":101,"type":"speech","speaker_name":"Sen. (Prof.) Tom Odhiambo Ojienda, SC","speaker_title":"","speaker":null,"content":"Mr. Speaker, Sir, I did not declare that the Cabinet Secretary, Sen. Sifuna and I are in the Broad-Based Government. However, I will still ask the follow-up questions."},{"id":1569890,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1569890/?format=json","text_counter":102,"type":"speech","speaker_name":"Sen. Sifuna","speaker_title":"","speaker":null,"content":"On a point of order, Mr. Speaker, Sir."},{"id":1569891,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1569891/?format=json","text_counter":103,"type":"speech","speaker_name":"Sen. (Prof.) Tom Odhiambo Ojienda, SC","speaker_title":"","speaker":null,"content":"It is true."}]}