Sh500,000 fine looms for Treasury CS over pension stalemate

Treasury CS John Mbadi appears before Senate Devolution Committee over illegal county bank accounts at Bunge Towers, Nairobi. July 17, 2025 [Elvis Ogina, Standard] National Treasury Cabinet Secretary John Mbadi has been summoned to appear before the Senate Labour Committee on August 20, failing which he will face a fine of Sh500,000. Yesterday, Mbadi failed to attend a scheduled session with the Senate Labour Committee, chaired by West Pokot Senator Julius Murgor, which was set to deliberate on the delayed pension payments for retirees under the Kenya Railways Staff Retirement Benefits Scheme. "This committee has just received a letter from the National Treasury Cabinet Secretary, John Mbadi, informing us that he will not be able to attend today because he has been assigned an urgent task by President William Ruto," said Murgor. The committee had planned to engage Mbadi on the proposed payment of a one-off Sh2.6 billion honourarium to former councillors, as well as the implementation of a monthly pension for 11,919 of them. Mbadi has now failed to appear before the committee twice-first on Thursday last week and again yesterday. Separately, the committee was also scheduled 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. "This committee has summoned the National Treasury Cabinet Secretary, John Mbadi, to appear before us without fail on August 20, as the matters at hand are critical and affect senior citizens who have served this country with dedication," said Murgor. Nominated Senator Betty Syengo said it was time Mbadi was compelled to appear, citing his evasiveness in previous engagements. She added that it was unacceptable for the Cabinet Secretary to ignore invitations to provide clarity and direction regarding the plight of the retirees. Nominated Senator Miraj Abdullahi echoed the decision to summon Mbadi. She noted that it was high time the matter was concluded, adding that it was unfair for elderly citizens to continually appear before the committee without resolution. In a prior appearance before the Senate plenary in March, Mbadi said 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 honourarium. The Cabinet Secretary told senators that there was no standardised formula for compensating the former councillors, as most of them were not salaried, but received allowances that varied across different regions during their time of service. "Let me state categorically that it is not my wish to withhold payments from former councillors. However, such payments must adhere to the law. In my view, the report by the taskforce is not legally binding. A proper legal framework must be established before any payments can be made," Mbadi explained. Senate Deputy Speaker Kathuri Murungi questioned why the CS had delayed implementing a resolution passed by the Senate, especially given that the National Treasury had committed to including the councillors' dues in the 2022-2023 financial year budget. Murungi told Mbadi that the Senate's resolution on the matter needed to be respected, noting that former councillors lacked an alternative forum to pursue their grievances. He urged Mbadi to disregard the Attorney General's opinion and act in accordance with the decision of the Senate. Kakamega Senator Boni Khalwale questioned whether Mbadi was implying that the Attorney General had the power to override a decision made by Parliament. "Mbadi is an experienced legislator who knows very well that Parliament does not act in vain. Former councillors from Uasin Gishu, Nandi and Kakamega counties visited me and informed me that the President had, in the past, promised to ensure their dues would be paid," said Khalwale.

Sh500,000 fine looms for Treasury CS over pension stalemate

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Sh500,000 fine looms for Treasury CS over pension stalemate

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