Nairobi county retirees demand answers over delayed pension benefits

Office of the governor, Nairobi County on June 15, 2026. [David Gichuru, Standard]

Retired Nairobi County employees have raised concerns over persistent delays in accessing their retirement benefits.

Through Eastleigh South Ward MCA Nicholas Juma, the former staff seek answers on their pension contributions and the financial obligations owed to former county workers.

Juma tabled a request before the Nairobi County Assembly seeking a statement from the Chairperson of the Sectoral Committee on Labour and Social Welfare on the delayed payment of retirement benefits by the Local Authorities Pension Trust (LAPFUND) and the remittance of statutory deductions.

In his request, Juma noted that the Constitution guarantees every person the right to social security, while the Retirement Benefits Act provides the legal framework for protecting the interests of retirees by ensuring they receive their dues in a timely and dignified manner.

He further observed that amendments proposed under the Pensions (Amendment) Bill, 2024 seek to introduce automatic cost-of-living adjustments for public service pensioners to preserve the value of pensions against inflation.

"It is a matter of profound concern that many retirees who have served this county with distinction are currently enduring significant financial hardship due to these systemic delays," the statement reads.

Eastleigh South Ward MCA Nicholas Juma. [Courtesy]

The Assembly has been asked to establish whether LAPFUND is currently ensuring the timely disbursement of retirement benefits to all eligible retirees and, if not, to explain the operational or administrative challenges behind the delays.

“While the Pension ­Amendment Bill, 2024 has sought to introduce progressive measures including automatic cost of living adjustments for public service pensioners, it remains imperative that the existing legal and contractual obligations to the current retirees are met with the urgency it deserve,” stated the statement.

The committee is also expected to disclose the total number of retirees who have exited county service but are yet to receive their terminal dues.

In addition, members want details of the outstanding financial liability owed by Nairobi County Government to LAPFUND on behalf of affected

Another key issue raised is the status of statutory pension deductions from current county employees.

The committee has been asked to confirm whether the contributions are being remitted to LAPFUND as required to safeguard workers' future retirement benefits.

The concerns come amid growing pressure on county governments to improve  financial accountability and ensure that pension obligations are honoured without unnecessary delays.

Retirement benefits are a critical source of income for former public servants, many of whom depend on the payments to meet healthcare, housing and daily living expenses after leaving employment.