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Treasury Rolls Out New Digital System for Salary and Pension Payments to Improve Efficiency

The National Treasury has announced a major shift in the management of public finances by migrating all government salary and pension payments to a newly developed online system.

The move is aimed at enhancing transparency, improving efficiency, and reducing delays in the disbursement of funds to civil servants and retirees.

The new platform, developed as part of ongoing public sector reforms, is designed to streamline payroll processing, eliminate manual interventions, and offer real-time tracking of payments.

It will integrate with other government financial management systems, including the Integrated Financial Management Information System (IFMIS), to provide end-to-end automation from fund allocation to final payment.

According to Treasury officials, the online system has already been piloted in select ministries and counties, and the full rollout is now underway following successful trials. The migration is expected to address long-standing challenges such as payment errors, ghost workers, and the late remittance of pensions.

For retirees, the digital platform introduces a self-service portal through which pensioners can view their statements, update personal details, and receive notifications on disbursements.

The government believes the reform will significantly reduce the backlog of unresolved pension claims and improve service delivery to former public servants.

Salaries for civil servants will also benefit from improved accuracy and timeliness.

By automating validation processes and linking directly with the national payroll database, the new system aims to reduce administrative costs and curb fraud associated with manual processing.

The Treasury noted that training sessions are being held for human resource officers, accountants, and IT personnel across ministries, departments, and agencies to ensure a smooth transition. County governments are also expected to integrate into the platform in phases.

This digital transformation initiative aligns with Kenya’s broader e-governance strategy, which seeks to modernise public service delivery through technology.

Officials anticipate that the system will improve fiscal accountability, enhance planning, and support ongoing efforts to digitise government operations.

While the transition may face initial implementation hurdles, stakeholders have largely welcomed the change as a positive step toward building a more efficient and transparent public finance management system.

Written By Ian Maleve