[Kenya] New government payroll system will automate employees’ pension contributions

In Kenya, the Ministry of Treasury has announced plans to automate the deduction and remittance of pension contributions for public servants by integrating the government’s payroll and financial management systems, The Kenya Times reports.

Treasury Cabinet Secretary John Mbadi stated that the reforms are aimed at reducing delays in pension remittances, improving compliance and safeguarding workers’ retirement savings.

Mr Mbadi announced the reform on August 6 during an appearance before the Senate Standing Committee on Labour and Social Welfare to present the Treasury’s submissions in a petition concerning the winding up and liquidation of the Technical University of Kenya (TUK) Staff Retirement Benefits Scheme.

According to Mr Mbadi, the reforms will integrate the Human Resource Information System for the Government of Kenya (HRIS-Ke) with the Integrated Financial Management Information System (IFMIS). 

The integration will reportedly enable pension contributions to be automatically deducted during payroll processing and remitted directly to the relevant retirement benefits schemes.

The Treasury stated that the move is expected to improve accountability, strengthen compliance with pension remittance requirements and reduce cases of delayed or non-remittance of employees’ retirement savings.

Mr Mbadi said, “The reforms will facilitate the automatic deduction and remittance of pension contributions during payroll processing, enhance transparency, reinforce compliance and significantly reduce the risk of delayed or non-remittance of employees’ retirement savings.” 

He reportedly added that the government remains committed to protecting workers’ retirement savings through stronger policies, sound governance and enhanced institutional oversight, stating that, although the regulation and supervision of pension schemes is the responsibility of the Retirement Benefits Authority (RBA), the Ministry will continue to implement reforms aimed at strengthening accountability and compliance across the sector. 

Addressing senators, the Cabinet Secretary said the National Treasury would continue working with the Retirement Benefits Authority, the Ministry of Education and other stakeholders to safeguard the interests of members of the Technical University of Kenya Staff Retirement Benefits Scheme during the liquidation process.

Mr Mbadi added that the government would also pursue broader reforms aimed at strengthening the governance, resilience and long-term sustainability of Kenya’s retirement benefits sector.

Source: The Kenya Times

(Quote via original reporting)

In Kenya, the Ministry of Treasury has announced plans to automate the deduction and remittance of pension contributions for public servants by integrating the government’s payroll and financial management systems, The Kenya Times reports.

Treasury Cabinet Secretary John Mbadi stated that the reforms are aimed at reducing delays in pension remittances, improving compliance and safeguarding workers’ retirement savings.

Mr Mbadi announced the reform on August 6 during an appearance before the Senate Standing Committee on Labour and Social Welfare to present the Treasury’s submissions in a petition concerning the winding up and liquidation of the Technical University of Kenya (TUK) Staff Retirement Benefits Scheme.

According to Mr Mbadi, the reforms will integrate the Human Resource Information System for the Government of Kenya (HRIS-Ke) with the Integrated Financial Management Information System (IFMIS). 

The integration will reportedly enable pension contributions to be automatically deducted during payroll processing and remitted directly to the relevant retirement benefits schemes.

The Treasury stated that the move is expected to improve accountability, strengthen compliance with pension remittance requirements and reduce cases of delayed or non-remittance of employees’ retirement savings.

Mr Mbadi said, “The reforms will facilitate the automatic deduction and remittance of pension contributions during payroll processing, enhance transparency, reinforce compliance and significantly reduce the risk of delayed or non-remittance of employees’ retirement savings.” 

He reportedly added that the government remains committed to protecting workers’ retirement savings through stronger policies, sound governance and enhanced institutional oversight, stating that, although the regulation and supervision of pension schemes is the responsibility of the Retirement Benefits Authority (RBA), the Ministry will continue to implement reforms aimed at strengthening accountability and compliance across the sector. 

Addressing senators, the Cabinet Secretary said the National Treasury would continue working with the Retirement Benefits Authority, the Ministry of Education and other stakeholders to safeguard the interests of members of the Technical University of Kenya Staff Retirement Benefits Scheme during the liquidation process.

Mr Mbadi added that the government would also pursue broader reforms aimed at strengthening the governance, resilience and long-term sustainability of Kenya’s retirement benefits sector.

Source: The Kenya Times

(Quote via original reporting)