High Court quashes bid for special pension scheme for governors, deputies
By Abdirahman Khalif |
The SRC argued that the proposed pension scheme was neither affordable nor fiscally sustainable.
The High Court has determined that retiring county governors and their deputies will not receive a defined benefit pension plan similar to that of State officers at the national level.
This decision came after a petition by the Council of Governors (CoG) challenged the Salaries and Remuneration Commission (SRC) brought before Judge Lawrence Nthiga Mugambi at the Milimani Law Court.
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The SRC argued that the proposed pension scheme was neither affordable nor fiscally sustainable. The commission contended that implementing such a scheme would significantly strain public finances, potentially diverting resources away from development and essential services.
SRC in their argument said that providing lifetime benefits to all retiring governors and deputy governors could overstretch the financial capacities of both the national and county governments.
"This would have meant that each turnover of a governor and deputy governor during each election period would have added to the pool of freshly elected individuals eligible for lifetime pension benefits, hence, straining the public finances," said SRC.
Service gratuity
Currently, governors and their deputies are entitled to a service gratuity at the end of their terms.
The gratuity amounts to 31 per cent of their annual basic salary for each year served.
The SRC maintained that this existing arrangement provides adequate social security for outgoing county officials. Additionally, an optional direct contributory benefit scheme is available for those seeking further retirement benefits.
In their petition, the CoG sought a monthly pension of Sh739,200 for governors and Sh700,000 for deputy governors, along with a lump sum equivalent to one year's salary.
The proposal also included a 3,000cc four-wheel-drive vehicle, fuel allowance, medical coverage for local and overseas treatment, and support such as a driver and personal assistant.
Last month, Nyando Member of Parliament Jared Okelo proposed an amendment to the Retirement Benefits (Deputy President and Designated State Officers) Act, Cap 19B.
This amendment aimed to extend gratuity and lifetime pension benefits to governors and their deputies, similar to those received by the president, deputy president, and MPs.
Governors and senators in July last year, agreed to pursue legislation that would provide generous retirement packages for the county bosses.
This consensus was reached during a two-day inaugural summit in Naivasha, where participants stressed the importance of supporting county leaders after their tenure ends.
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