Financial Penalty Threatened for Treasury Minister Due to Pension Issue Impasse

Financial Penalty Threatened for Treasury Minister Due to Pension Issue Impasse

The National Treasury Cabinet Secretary, John Mbadi, has been summoned to appear before the Senate Labour Committee on August 20, 2025, following his failure to attend earlier sessions investigating delayed pension payments and unpaid benefits to retired public servants.

The committee, chaired by West Pokot Senator Julius Murgor, is addressing long-standing delays in disbursing pensions and gratuities to retirees from entities like Kenya Railways Corporation, Kenya Cooperative Creameries, and former councillors. The matter at hand involves significant delays and non-payment of pensions, death benefits, disability benefits, and a one-off honorarium for ex-councillors, which has caused prolonged suffering among affected retirees and their families.

Mbadi had previously skipped the committee meeting twice, leading to warnings and the threat of a Sh500,000 fine for undermining parliamentary oversight. The committee insists that only Mbadi can provide authoritative answers to these issues, rejecting responses from lower Treasury officials. Alongside Mbadi, the committee has also summoned Cooperatives Cabinet Secretary Wycliffe Oparanya and Kenya Railways Managing Director Philip Mainga to explain the delays.

Senate Deputy Speaker Kathuri Murungi has questioned why Mbadi has delayed implementing a resolution passed by the Senate, especially given the commitment to include the councillors' dues in the 2022-2023 financial year budget. Murungi has urged Mbadi to disregard the Attorney General's opinion and act in accordance with the decision of the Senate.

Nominated Senator Miraj Abdullahi echoed the decision to summon Mbadi, stating that it was high time the matter was concluded and finding it unfair for elderly citizens to continually appear before the committee without resolution. Kakamega Senator Boni Khalwale has questioned whether Mbadi is implying that the Attorney General has the power to override a decision made by Parliament.

Notably, Mbadi previously stated that he had received legal advice from the Attorney General indicating there was no legal basis to pay former councillors who served for less than 20 years the proposed Sh200,000 honorarium. However, Mbadi believes the report by the taskforce is not legally binding and that a proper legal framework must be established before any payments can be made.

The committee also planned to meet Mbadi, Attorney General Dorcas Oduor, Labour Cabinet Secretary Alfred Mutua, Agriculture Cabinet Secretary Mutahi Kagwe, and Cooperatives Cabinet Secretary Wycliffe Oparanya to discuss a petition concerning unpaid terminal dues and unremitted deductions to Maziwa Sacco.

Nominated Senator Betty Syengo expressed the need for Mbadi to be compelled to appear, citing his evasiveness in previous engagements. John Mbadi failed to attend a scheduled session with the Senate Labour Committee on August 19, and the committee has now summoned him to appear before them without fail on August 20.

Khalwale has stated that former councillors from Uasin Gishu, Nandi, and Kakamega counties visited him and informed him that the President had promised to ensure their dues would be paid. The Senate Labour Committee's discussion with Mbadi now also includes a petition concerning unpaid terminal dues and unremitted deductions to Maziwa Sacco.

The committee's determination to address these issues highlights the importance of ensuring timely pension payments and benefits for retired public servants, and the committee looks forward to Mbadi's appearance and cooperation in resolving these matters.

1. The Senate Labour Committee, chaired by West Pokot Senator Julius Murgor, is set to discuss a petition concerning unpaid terminal dues and unremitted deductions to Maziwa Sacco, along with Mbadi, Attorney General Dorcas Oduor, Labour Cabinet Secretary Alfred Mutua, Agriculture Cabinet Secretary Mutahi Kagwe, and Cooperatives Cabinet Secretary Wycliffe Oparanya.
2. John Mbadi, the National Treasury Cabinet Secretary, has been summoned to appear before the Senate Labour Committee on August 20, 2025, following his failure to attend earlier sessions investigating delayed pension payments and unpaid benefits to retired public servants, including those from entities like Kenya Railways Corporation and Kenya Cooperative Creameries.
3. The committee has also summoned Cooperatives Cabinet Secretary Wycliffe Oparanya and Kenya Railways Managing Director Philip Mainga to explain the delays in pension payments and benefits.
4. Nominated Senator Miraj Abdullahi echoed the decision to summon Mbadi, stating that it was high time the matter was concluded and finding it unfair for elderly citizens to continually appear before the committee without resolution.

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