New Bill seeks to safeguard pensions for dismissed government workers

If Parliament approves the proposal, it will end the long-standing rule that bars dismissed civil servants from accessing retirement benefits, a move seen as strengthening protection for workers in the public sector.
Dismissed public servants may soon be entitled to a pension and other benefits under a new law being considered by Parliament.
The Pensions (Amendment) Bill, 2024, seeks to guarantee every public officer a right to a pension, even if they are removed from service through disciplinary action or dismissal.
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The Bill, introduced by Emuhaya MP Omboko Milemba, intends to revise section 5(2) of the Pensions Act, Cap 189, which currently allows the government to dismiss an officer “at any time and without compensation.”
The amendment would also delete provisions in the Public Service Commission Act that penalise dismissed employees by denying them retirement benefits such as gratuity or annual allowances.
According to the draft, “The Pensions Act is amended in section 5 by deleting subsection 2.” The proposal is under preliminary review by the National Assembly’s Social Protection Committee, chaired by Thika MP Alice Ng’ang’a, before it can proceed to formal introduction.
Milemba, who also leads the Kenya Union of Post-Primary Education Teachers, was absent during the committee’s initial hearing.
In his memorandum, Milemba explains that the amendment seeks to uphold constitutional guarantees on fair labour and protect the welfare of public servants.
He notes that granting dismissed officers access to pension will “ensure that dismissed public officers are eligible for pension, thereby promoting fair labour.”
Currently, while section 5(1) of the Pensions Act grants officers an absolute right to pension, section 5(2) limits this by exempting cases involving dismissal and allowing the government to withhold compensation for past service.
The existing framework also provides for six types of disciplinary penalties, including recovery of losses, reprimand, delayed promotion or salary increment, demotion, and dismissal.
If Parliament approves the proposal, it will end the long-standing rule that bars dismissed civil servants from accessing retirement benefits, a move seen as strengthening protection for workers in the public sector.
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