NAIROBI, Kenya, Feb 23 – Public institutions account for the bulk of unremitted pension contributions, underscoring mounting strain in Kenya’s retirement benefits sector as many retirees grapple with shrinking incomes.
The latest survey by the Retirement Benefits Authority (RBA) shows that as of December 31, 2025, unremitted pension contributions stood at Sh66.41 billion. Public sector schemes accounted for Sh61.8 billion, or 93 percent of the total across 51 schemes.
In contrast, 98 private sector schemes owed Sh4.6 billion, representing just seven percent. Education institutions—largely public universities—top the list, with arrears amounting to Sh30.24 billion as at December 2025.
County governments follow at Sh20.42 billion, while public administration entities account for Sh4.64 billion.
The figures point to a persistent compliance gap in taxpayer-funded institutions, raising concerns over fiscal discipline and the impact on workers’ retirement security.
“Unremitted Contributions Majorly Affect Public Institutions,” the survey stated.
“As of DEC 2025, the unremitted contribution total is Kshs. 66.41 billion and are distributed mainly in Public Universities, County Governments, and other government agencies.”
Unremitted contributions rose from Sh59.67 billion in June 2025 to Sh66.41 billion in December 2025, despite a temporary dip to Sh65.45 billion in September. Although the December figure is lower than the Sh72.52 billion recorded in March 2025, the data indicate that arrears remain elevated.
The dominance of public institutions in pension arrears—particularly in education and county governments—suggests structural cash flow challenges at state-funded and sub-national entities, even as private sector schemes appear relatively compliant on remittances.
