President William Ruto’s administration is bracing for a significant labour crisis as nearly 50,000 government employees are expected to retire over the next few years. This wave of retirements, which could severely impact government operations, comes at a time when the government is struggling to replace these workers or meet their pension obligations.....CLICK HERE TO READ THE FULL ARTICLE>>>
Recent government data reveals that 46,838 positions in various government departments will open up between now and 2029 due to retirements. Of these, 39,361 civil servants are anticipated to retire within the next five years, starting from June 2024. Additionally, 7,477 officers have already retired between September 2023 and June 2024, leaving a considerable gap in public service.
According to Isaac Mwaura, a government representative, there are 43,976 officers aged 55 and above, all set to retire by 2029. In the current financial year alone, 7,662 employees are expected to leave their posts. Furthermore, another 39,441 civil servants on contractual terms will see their contracts expire soon, further exacerbating the situation.
As part of President Ruto’s austerity measures linked to the controversial Finance Bill 2024, public servants reaching the age of 60 will be retired immediately to make room for younger workers. This strategy aims to address the growing frustration among the youth, who recently participated in Generation Z protests. However, the plan faces potential legal challenges, as current laws require that pensioners must be fully compensated before they can be released from service.
The Kenyan government currently employs approximately 968,425 workers, costing the state a staggering Ksh 1.17 trillion in salaries and allowances in the financial year ending June 2024. Despite efforts to streamline public service, the enormous pension liabilities continue to weigh heavily on the National Treasury.
Plans by the Pensions Department to process 85,400 claims over three years could require Ksh 685 billion in pension benefits. However, with a cash crunch looming, the government has already failed to remit Ksh 72.96 billion in pension and PAYE deductions this year, raising concerns about the feasibility of these ambitious plans.
While the government insists the funds for pensions are secured, the looming retirements could pose a significant challenge to President Ruto’s administration, threatening to disrupt public services and hinder the government’s ability to fulfill its obligations to its employees…CONTINUE READING>>
