A petition has been lodged before Parliament seeking to overhaul the country’s pension system in a bid to merge existing schemes, improve monthly benefits and ensure retirees are better protected from the rising cost of living.
The petitioners, retired civil servants, argue that the current system is fragmented and unfair, leaving many pensioners struggling with rising living costs and unequal treatment compared to newer public servants.
The petition was presented to the National Assembly by Speaker Moses Wetang’ula on behalf of the Kenya National Association of Public Service Pensioners (KNAPSP). The retirees are calling for the merger of all non-contributory civil service pension schemes into one framework aimed at improving fairness, efficiency and better management of retirement benefits.
They argue that the existing pension structure is broken into separate systems, creating inequality and leaving many retirees unable to cope with increasing expenses.
The pensioners also want the National Treasury, working together with the Salaries and Remuneration Commission (SRC), to conduct an actuarial study on pension payments and recommend adjustments that would protect retirees from inflation.
They say many pensioners are receiving benefits that have failed to keep up with the rising cost of essential goods and services.
“They argue that while new entrants benefit from the modern contributory framework, existing retirees remain tethered to an obsolete system characterised by inadequate and irregular payments,” Wetang’ula told the House.
The petitioners, led by John Serem, Eng Richard Bett and Olive Chepkoech, further want reforms to the Public Service Superannuation Scheme, saying it has created inequality between older retirees and newer public servants.
According to the petition, the Public Service Superannuation Scheme Act of 2012 introduced the shift from a non-contributory pension system to a contributory scheme that became effective on January 1, 2021. The retirees argue that this transition created a “dual pension system,” where new entrants benefit from a modern structure while older pensioners remain under a system marked by low and irregular payments.
They further say this disparity amounts to discrimination against workers who served the same government but now receive different treatment in retirement.
In the petition submitted to the Petitions Committee, the retirees also raised concerns over difficulties faced by dependents in accessing pension benefits after the death of pensioners.
They are calling for simpler administrative procedures to ensure spouses and beneficiaries receive their entitlements without long delays or bureaucratic hurdles.
The petitioners further argue that recommendations made by the Salaries and Remuneration Commission in 2014, which proposed pension reviews every three years, have not been fully implemented, leaving many retirees exposed to rising living costs.
They also raised concerns over the requirement that retiring officers commute a quarter of their pension into a lump-sum payment, saying it reduces the monthly income available to retirees.
Legislators who contributed to the debate supported the petition, saying pensioners are facing serious challenges that require urgent attention.
Emuhaya MP Omboko Milemba supported the concerns, particularly on inflation, delayed pension payments and difficulties faced by dependents accessing benefits after the death of pensioners.
“Indeed, there is inflation on pensions, and as they have indicated, there is a need to revise them. The protocol involved is so long, and the beneficiaries do not get it,” the MP said, adding that the Pensions Department’s consumption of the budget was very low.
“Their consumption was at about 39 per cent, yet many teachers, civil servants and other workers have not been paid their pensions.”
However, he cautioned that merging the old pension scheme with the Public Service Superannuation Fund may not be straightforward.
“This is a little bit more complex because there was an age timeline for those who joined the contributory scheme,” he said.
Githunguri MP Gathoni Wamuchomba said pension matters affect all workers and should be treated as a national priority, while supporting proposals aimed at cushioning pensioners from taxation.
“We are considering how we are going to make sure that pensioners are no longer going to pay income tax on their income. It is in the interest of this House to make sure that all pensioners are treated fairly and whatever they are paid is their money without further deductions,” she said.
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