In a shocking revelation, Auditor General Nancy Gathungu has exposed a staggering loss of Sh67 billion in public funds, unravelling a web of corruption within the pension system.

The performance report discloses that top civil servants, entrusted with managing the scheme, were involved in fraudulent activities, leading to the misappropriation of taxpayers' money.

The audit report highlights a disturbing pattern of malfeasance, with officials in the National Treasury allegedly colluding to manipulate the pension fund.

One of the key findings points to the use of duplicate IDs by civil servants to enrol fake claimants, resulting in significant financial losses.

The report specifically identifies 260,242 fake claimants, contributing to the staggering Sh67.9 billion loss.

Read More

  1. Kenya’s debt soars to Sh10.8 trillion as pressure on finances mounts
  2. KRA invites public to give its voice on sweeping income tax reforms for 2024
  3. CBK announces release of new currency banknotes with enhanced features

In one egregious instance, 419 individuals were irregularly enrolled in the pension scheme, and an astounding Sh555.9 million was paid out.

Additionally, the Treasury's pension department disbursed Sh26.9 million to 273 persons, despite their registration occurring after the payments were made.

The irregularities extend further, revealing that 962 individuals were paid Sh1.6 billion before their official retirement, raising questions about the integrity of the pension system.

Furthermore, Sh44 billion was disbursed to unidentified individuals lacking Kenya Revenue Authority (KRA) PIN certificates, a clear indication of lax oversight.

The report exposes a troubling trend of payments made to claimants who shared identification cards, with a substantial sum of Sh152.8 million being disbursed under such circumstances.

Auditors also discovered a case where Sh20.9 billion was paid to individuals sharing bank accounts, totalling 29,387 beneficiaries.

The systemic flaws within the pension scheme are not confined to a single department, as the report underscores serious loopholes across various government entities.

The Ministry of Foreign Affairs, National Treasury, Health, the Department of Prisons, Transport, Water, Investment and Industry, Social Protection, Judiciary, and the Teachers’ Service Commission all exhibit signs of irregularities.

This revelation raises concerns about the extent of corruption within the public sector, emphasizing the urgent need for comprehensive reforms to safeguard public funds.

The findings from this audit demand swift action to hold those responsible accountable and to fortify the pension system against further abuse.