While Kenyan pensioners often queue for years to access their hard-earned dues, Katsina State in Nigeria has rewritten the script, saving a staggering N19 billion (KES 1.5 billion) through ruthless efficiency.

Governor Dikko Umaru Radda’s inauguration of a new Pension Transition Board is not just a bureaucratic shuffle; it is a masterclass in fiscal discipline. By clearing a massive backlog of gratuities and investing surplus funds to generate returns, Katsina offers a stinging critique of the mismanagement that plagues pension schemes across the continent, including our own NSSF.

The Anatomy of Success

The numbers from Katsina are compelling. Between June 2023 and December 2025, the state not only cleared its debts to retirees but also generated an additional N668 million (KES 53 million) in investment returns. This was achieved by cutting out the "ghost pensioners" and streamlining the contributory process.

"We owe them dignity in retirement," Governor Radda declared, a sentiment that resonates deeply in Kenya, where retirees from state corporations frequently die destitute while waiting for their payouts.

• Transparency is Key: The new board includes unions and independent observers, removing the opacity that allows corruption to thrive.
• Investment vs. Theft: Unlike the looted pension funds often making headlines in Nairobi, Katsina's model proves that pension funds can be profitable growth engines if ring-fenced from political interference.
• Timely Disbursal: The "pay-as-you-go" mentality has been replaced by a fully funded, sustainable system that anticipates liabilities before they mature.

A Wake-Up Call for Nairobi

The Katsina success story should be mandatory reading for Kenya’s Treasury and pension administrators. It dismantles the excuse that "there are no funds." Money exists; what is lacking is the political will to seal the leaks and manage it with integrity.

As Kenya grapples with an aging workforce and a pension time bomb, looking West to Nigeria might provide the solution. If a state government can clean up its act in two years, a national government has no excuse for failure.

Ultimately, the true measure of a government is how it treats those who built it. Katsina has passed that test. Kenya is still studying for it.