Nairobi, Dec. 15 -- The government has failed to remit deductions of Sh1.2 billion to the civil servants' pension scheme, risking a loss of returns to workers in Kenya's troubled retirement benefits system.

According to the Office of the Auditor General, the Public Service Superannuation Fund (PSSF) had a balance of Sh10.6 billion at the end of June 2025 relating to unremitted employer and employee contributions due to the fund.

The State had paid up arrears of Sh9.38 billion at the end of August, leaving a balance of Sh1.2 billion which remained during the audit of PSSF books.

Delays in remitting the deductions means the funds have less time to earn returns for retirees, hurting their benefits.

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