Financial penalties threaten the Treasury Cabinet Secretary due to the ongoing pension hold-up dispute
News Article: Senate Summons National Treasury CS John Mbadi Over Delayed Pensions and Councillor Honorarium
John Mbadi, the National Treasury Cabinet Secretary, has been summoned by the Senate Labour Committee to address long-pending pension and honorarium matters, particularly the delayed pension payments for retirees of the Kenya Railways Corporation and the proposed one-off honorarium payment to former councillors.
The summons comes following Mbadi's repeated failure to appear before the committee, with the latest occurrence on August 19, 2025. The initial meeting was scheduled for August 4, 2025, but Mbadi was unable to attend, citing urgent presidential assignments.
The Senate Labour Committee, chaired by West Pokot Senator Julius Murgor, has now officially summoned Mbadi along with Cooperatives CS Wycliffe Oparanya and the Kenya Railways Managing Director Philip Mainga to a meeting on August 20, 2025. Potential sanctions for Mbadi, including a fine of Sh500,000, may be imposed should he fail to comply with the summons.
Senators have expressed strong criticism towards Mbadi for skipping these sessions. Nominated Senator Miraj Abdullahi and Senator Betty Syengo have echoed the decision to summon Mbadi, stating that it is time he is compelled to appear before the committee.
The issues specifically relate to the delayed pensions for Kenya Railways pensioners, where retirees under the Kenya Railways Staff Retirement Benefits Scheme have not received their expected payments on time. Additionally, discussions are ongoing regarding a proposed one-off honorarium payment of Sh2.6 billion to former councillors, along with discussions on implementing a monthly pension scheme for these former public officers.
Mbadi has stated that there is no standardised formula for compensating former councillors due to their varying allowances. However, he has also been advised by the Attorney General that there is no legal basis to pay former councillors who served for less than 20 years the proposed Sh200,000 honorarium.
Senator Boni Khalwale has questioned whether Mbadi was implying that the Attorney General could override a decision made by Parliament. Meanwhile, Senate Deputy Speaker Kathuri Murungi has questioned why Mbadi delayed implementing a resolution passed by the Senate regarding the councillors' dues.
Khalwale has also stated that former councillors from Uasin Gishu, Nandi, and Kakamega counties had informed him that the President had promised to ensure their dues would be paid in the past. Murungi urged Mbadi to disregard the Attorney General's opinion and act in accordance with the Senate's decision.
The committee also planned to discuss with Mbadi the implementation of a monthly pension for 11,919 former councillors. Furthermore, the committee had also scheduled a meeting with Mbadi, Attorney General Dorcas Oduor, Labour Cabinet Secretary Alfred Mutua, Agriculture Cabinet Secretary Mutahi Kagwe, and Cooperatives Cabinet Secretary Wycliffe Oparanya to discuss a petition concerning unpaid terminal dues and unremitted deductions to Maziwa Sacco.
As the situation unfolds, the Senate Labour Committee continues to push for transparency and action in addressing these long-standing issues affecting Kenya Railways retirees and former councillors.
- The Senate Labour Committee has arranged a meeting on August 20, 2025, to debate financial matters such as the delayed pensions for Kenya Railways pensioners and the proposed one-off honorarium payment to former councillors, which fall under the realm of 'politics' and 'general-news'.
- John Mbadi, the National Treasury Cabinet Secretary, has been summoned by the committee due to his absence at previous meetings and his role in the delayed pension payments for retired Kenya Railways Corporation employees, an issue that intertwines with 'business' and 'finance'.
- Senators have criticized Mbadi's continued neglect of committee meetings, and the potential sanctions, including a fine of Sh500,000, emphasize the importance of his attendance, tying 'politics' and 'finance' into the discussion.
