Nairobi, Feb. 20 -- Thousands of workers at cash-strapped parastatals risk retiring empty-handed after their employers failed to remit monthly deductions to pension schemes, the National Treasury has warned.

The Treasury in the latest disclosures says struggling state-owned entities had not remitted nearly Sh42.06 billion in employer contributions at the end of last financial year.

The boiling pension crisis, the Treasury wrote in the 2024 Budget Policy Statement, poses "a huge challenge to the social security of the pensioners who may retire without a pension".

Unremitted employer pension contributions are listed as the second biggest pending bills for the parastatals after arrears owed to suppliers of goods and services and contracto...