Ombudsman gives Pensions Department 60 days to clear retirement benefits

Ombudsman gives Pensions Department 60 days to clear retirement benefits

The commission has directed the Pensions Department to process all pending claims within 60 days and submit a compliance report.

The Commission on Administrative Justice (CAJ) has given the Pensions Department 60 days to process and pay all outstanding retirement benefits. The Commission warned of consequences for non-compliance.

According to the Ombudsman, the department has been ranked among institutions with the highest number of complaints, with 674 cases filed between 2012 and 2023, mostly over delayed payments.

Despite previous investigations and reform recommendations, many retirees still wait for years—some even decades—to receive their rightful dues.

In a statement on Thursday, CAJ Chairperson Charles Dulo called for an overhaul of the pensions system, citing “inordinate delays, unresponsiveness, and manifest injustice” that have eroded fairness, dignity, and public confidence.

He said systemic reforms were needed, including digitisation and automation of pension processes, improved data management, streamlined bureaucratic procedures, and stronger accountability mechanisms.

“These measures are crucial in addressing the persistent delays, ensuring that retirees and their beneficiaries receive their rightful benefits in a timely and efficient manner without enduring decades of unnecessary delays and financial hardship,” Dulo said.

A report released by CAJ in May 2024 on the state of administrative justice in Kenya ranked the Pensions Department among institutions with the highest number of complaints.

The report noted that in 2016, CAJ investigated the department’s operations, revealing that about 70 per cent of retired public servants were dissatisfied with the processing and disbursement of their benefits. Complaints cited delays, bureaucratic inefficiencies, corruption, and a lack of transparency.

Despite recommendations made in 2016—including streamlining payment processes, decentralisation, and setting aside adequate funds, CAJ said it continues to receive a high number of complaints.

Since 2019, the commission noted it has received 318 complaints against the Pensions Department. Of these, 174 have been resolved, while 144 remain pending. The majority, 274 cases, relate to pension processing delays, including 68 cases specifically involving teachers.

Other grievances include unresponsiveness, inefficiency, manifest injustice, unfair treatment, unlawful official conduct, and access to information issues.

The report highlights that while some retirees have waited up to three years, many have endured delays ranging from four to 15 years. In more extreme cases, 48 retirees have waited between 16 and 25 years, while 20 have been in limbo for over 26 years.

“These delays are not just statistics; they represent real people grappling with financial hardship, inability to settle medical bills, uncertainty, and, in many cases, a profound loss of dignity,” Dulo said.

According to the Ombudsman, one of the main responses from the Pensions Department has been that complainants fail to submit required documents. However, CAJ dismissed this as unreasonable.

“The Pensions Department is the custodian of pensions documentation and should instead retrieve the records to ensure timely and just resolution of pension claims,” the commission said.

CAJ highlighted cases that illustrate the severity of the problem. These include a retired teacher who has waited 10 years for his injury pension, a pensioner whose monthly payments stopped in 2005 and were only partially reinstated after 12 years, and a retired teacher who waited 19 years for pension arrears amounting to Sh1.1 million.

One pensioner has been seeking a pension increment since retiring in 2000, yet after 24 years, there is still no confirmation of the adjustment. Another complainant has been waiting 17 years despite being issued a pension number. In yet another case, a retiree has faced a 21-year delay due to a job group discrepancy, while a widower has been waiting 22 years for his late wife’s death gratuity.

In a particularly egregious case, a retired teacher has been waiting 23 years for an enhanced pension award following a court ruling, while another pensioner has been seeking his late father’s benefits for 25 years.

“These Kenyans, who are elderly and vulnerable, struggle to afford medical care, have been forced to depend on well-wishers, and endure significant emotional and psychological distress.”

The commission has directed the Pensions Department to process all pending claims within 60 days and submit a compliance report. Failure to do so, it warned, could lead to the Director of Pensions being declared unfit to hold public office.

Additionally, CAJ called for measures to curb corruption, improve efficiency, decentralise services, and enhance record-keeping. It urged the National Assembly to fast-track the Pensions (Amendment) Bill, which would establish a legal timeline of 60 days for processing pension payments.

The commission has encouraged affected retirees to file complaints through its offices, Huduma Centres, and postal addresses to push for justice.

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