Treasury in Crisis: Senators Threaten Mbadi with Sanctions Over Vanished Billions in Unpaid Pensions.

In a dramatic escalation, Kenya’s Senate Standing Committee on Labour and Social Welfare has formally summoned Treasury Cabinet Secretary John Mbadi to account for mounting delays in pension payments and unremitted retirement benefits—demanding his presence in person on

August 4 or face parliamentary action.

Committee Furious Over Persistent Snubs.

The committee, chaired by Senator Julius Murgor, reacted sharply after Mbadi failed to attend their meeting and instead sent Principal Secretary Cyrell Wagunda Odede as his representative. Senators rejected this move, asserting that only Mbadi can authoritatively explain delays that have caused widespread hardship.

“This will continue to drag because decisions are made at the Cabinet level,” Sen. Murgor warned. “If the CS is not here, then the petition will not be met.” Spectrum of Complaints: Who’s Affected?The committee has received multiple petitions from retirees, highlighting several unresolved issues:

Unpaid pension dues to former Kenya Railways and KEMRI staff;Non-remittance of death and disability benefits for public servants;Pending KSh 200,000 one-off honorarium payments owed to ex-councillors.

Senators Push Back Against Mbadi’s Defense.

Kitui Senator Enock Wambua, citing Mbadi’s prior tenure as a legislator, condemned the CS for avoiding parliamentary obligations. He emphasized that compliance isn’t optional—and Mbadi should know this better than anyone.

Vice Chairperson Senator Crystal Asige joined the chorus, labeling Mbadi’s repeated absences “disappointing and unacceptable.” She demanded direct answers from the CS, not substitutes.

Pension Crisis Deepens Amid Rising Budget Pressure.

Reports show retirees and their families have endured prolonged suffering while outstanding pension liabilities balloon. As of mid-2024, the Treasury had allegedly not disbursed KSh 23 billion meant for pension arrears.

Meanwhile, Mbadi has acknowledged the presence of “ghost pensioners”—individuals receiving benefits posthumously—and promised overhauls including digitisation, biometric verification, and improved retirement claim submission timelines, with the new system slated to launch on July 1, 2025.

What’s at Stake?.

The Senate has given Mbadi a clear deadline: appear in person on August 4 or face potential sanctions. Failure to show up again risks punitive action under parliament’s standing orders.

With pension payments now consuming over KSh 207 billion—up 39% from the previous year—this oversight failure exposes both fiscal stress and growing public distrust.

Countdown to Accountability.

As the Legislature awaits the Treasurer’s response, retirees and advocacy groups are watching closely. Will the CS break his habit of no-shows and provide concrete solutions—or risk punitive measures and deeper political fallout?

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