Unremitted pension deductions dip to Sh66bn ahead of tighter rules

Concern over the scale of unpaid deductions has prompted the regulator to propose tougher recovery measures, including higher penalties, personal liability for accounting officers, and funding restrictions for non-compliant public institutions.

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Unremitted pension deductions eased to Sh66.41 billion during the six months to December 2025, down from Sh72.5 billion in June, even as public institutions continued to account for the bulk of unpaid retirement contributions.

Figures from the Retirement Benefits Authority (RBA) show the 8.4 percent decline occurred just before the regulator moved to propose new measures to arrest the trend, including the introduction of higher fines and funding freezes.

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