State pay to retirees falls by Sh36bn amid cash crunch

Treasury’s payments to retired civil servants have dropped by more than a third or Sh36.9 billion in the nine months to March amid a cash squeeze that points to delayed disbursement of State pensions.

The pensions department paid Sh54.48 billion to retired civil servants in the period to March compared to Sh95.4 billion in a similar period a year earlier, reflecting a drop of 38.71 percent in an economy where an average of 21,000 State employees retire annually.