Treasury CS Mbadi faces Sh500,000 fine for skipping Senate grilling on delayed pension payments

Treasury Cabinet Secretary John Mbadi now faces a potential Sh500,000 fine after failing, for the second time, to appear before a Senate committee investigating stalled pension and gratuity payments owed to thousands of retired public servants.

The Senate Standing Committee on Labour and Social Welfare on Monday expressed frustration, accusing Mbadi of being evasive and undermining Parliament’s oversight role.

In response, the committee issued a fresh summons compelling Mbadi to appear on August 20, 2025, alongside Cooperatives Cabinet Secretary Wycliffe Oparanya and Kenya Railways Managing Director Philip Mainga.

"This is the second time the Cabinet Secretary has skipped our meeting. We are hereby issuing summons for the CS to appear on August 20, 2025, at 10 am," said committee chairperson and West Pokot Senator Philip Murgor.

Mbadi was initially scheduled to appear before the committee on Monday, August 4, but wrote to request a postponement, citing official duties assigned by President William Ruto outside Nairobi.

Long-standing delays

The session had been convened to address long-standing delays in disbursing pensions to retirees from Kenya Railways Corporation (KRC), Kenya Cooperative Creameries (KCC), and former councillors.

Murgor said the meeting will now require the presence of the Cabinet Secretaries for Treasury and Cooperatives, the managing director of Kenya Railways, and the Chief Executive Officer of the Kenya Railways Staff Retirement Benefits Scheme.

Due to Mbadi’s absence, the sitting was adjourned. Representatives from the New KCC Staff Retirement Scheme, Kenya Railways retirees, and the Retirement Benefits Authority (RBA) Managing Director, Charles Macharia, had attended the session, alongside the acting New KCC Managing Director, Samuel Ichura.

Nominated Senator Beth Siengo urged the committee to invoke parliamentary provisions to compel Mbadi’s appearance.

Elusive

"This matter is critical to our aged petitioners who spent their youth working for KRC and New KCC. I propose that we summon the Cabinet Secretary. Mbadi has become elusive. The summons must indicate the punishment the CS must expect," said Senator Siengo.

Senator Mary Seneta backed the move, insisting that the committee must act firmly to resolve the grievances of elderly petitioners.

“The only way the committee will secure Mbadi’s attendance is through the issuance of summons,” said Senator Seneta.

Under parliamentary rules, a Cabinet Secretary can be summoned by a committee if they fail to honour an invitation issued with at least 14 days’ notice.

Mbadi also skipped a session the previous week, during which the committee was to deliberate on a petition by Taita Taveta Senator Jones Mwaruma over delayed pensions for former KRC employees.

In addition to addressing pension delays, Mbadi is expected to present a report on the implementation of a one-off Sh200,000 honorarium for former councillors, a resolution approved by the Senate on October 18, 2018, following recommendations from the Labour and Social Welfare Committee.

The committee wrote formally to the National Treasury and the Ministry of Labour and Social Protection on October 31, 2022, seeking updates on the resolution's implementation. It followed up with reminder letters on February 28, April 14, and September 27, 2023, but the Treasury repeatedly requested to reschedule.

Senators also want Mbadi to clarify whether the government plans to enrol former councillors and their spouses into the Social Health Insurance Fund, enabling them to access medical services at county health facilities.

Murgor confirmed that Treasury responded to two committee statements in November 2023 and proposed holding a meeting in 2024. However, senators criticised the delays as unacceptable and vowed to hold the CS accountable.