New proposal to increase pension and allowances to all government employees
Matuga MP proposes a new bill to increase the pension, benefits, and allowances paid to government employees over inflation
Matuga MP proposes a new bill to increase the pension, benefits, and allowances paid to government employees over inflation.
According to Matuga Member of Parliament Kassim Sawa, the Pension (Amendment) Bill 2024 was geared at cushioning public officers against inflation in periods of economic uncertainty.
“The principal objective of this Bill is to amend the Pensions Act Cap 189, to include an automatic cost of living adjustment to the pensions earned by all retired public servants,” he added.
If implemented, the automatic cost of living adjustment shall be calculated based on an increase in the consumer price index within 12 months ending on June 30 in each financial year.
Additionally, under the bill, the consumer price index shall be determined by the Kenya Bureau of Statistics (KEBS). Each month KEBS publishes the country’s inflation rate.
Meanwhile, in the new proposal, the relevant Cabinet Secretary shall publish information on the automatic cost of living adjustment in the Gazette notice.
If implemented, these changes will apply to all government employees who have been in service of the government and retire after the commencement of this bill.
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“The bill seeks to provide for the use of the most current salary applicable to a job group as the basis for the calculation of the pensions payable to public servants who have retired in that job group or its equivalent,” the MP added.
Under the current act, Pensions Act Cap 189, all officers have the absolute right to pension and gratuity. All employees are entitled to the pension upon retirement but there are a few exemptions.
Some of the exceptions include; if the office is abolished, if the officer is sent on compulsory retirement, and if the employee is incapable of performing the duties due to medical reasons among other reasons.
“A pension granted to an officer under this Act shall not be less than Ksh2,000 or such other amount as may be specified by the President from time to time, but shall not exceed the full pensionable emoluments drawn by the officer at the time of his retirement,” the Act reads in parts.
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