SRC rejects Bill proposing lucrative retirement package for judges

The Salaries and Remuneration Commission (SRC) has taken a firm stand against a proposed law that seeks to award superior court judges expanded retirement benefits, warning that it would burden taxpayers with over Sh15 billion and erode the commission’s constitutional authority.

In a memorandum sent to National Assembly Clerk Samuel Njoroge on July 25, the commission expressed strong objections to the Judges Retirement Benefits Bill 2025, saying it violates fiscal responsibility principles and gives the Judicial Service Commission (JSC) unchecked powers over benefits of state officers, without the involvement of the SRC.

Acting SRC CEO Margaret Njoka stated that the Bill directly undermines the commission’s exclusive constitutional mandate to set and review the remuneration of state officers, as provided under Article 230(4)(a) of the Constitution and upheld by the High Court in 2015.

She also noted that the proposed law introduces costly post-retirement medical and transport benefits, with a projected first-year cost of Sh1.74 billion, yet these have not been set by the SRC as required by law.

“The proposed review of retirement benefits for top judges of superior courts constitutes a direct usurpation of SRC’s exclusive constitutional mandate to set and regularly review the remuneration and benefits of state officers,” said Njoka.

The Bill defines “pensionable emoluments” to include both the basic salary and house allowance, contrary to an October 13, 2023, letter from SRC to JSC, which clarified that only the basic salary should be used to calculate pension and gratuity for judges.

If passed without changes, the law will apply to sitting judges, those who join after it becomes operational, and those who retired after August 27, 2010, when the current Constitution was enacted.

It also states that if there is any conflict with other laws, the new Act will override them, which would place it above the SRC Act, effectively stripping the commission of its powers regarding judges’ benefits.

SRC further warns that granting such benefits to judges could prompt similar demands from other state officers, creating pressure on the national budget and worsening the already tight fiscal space.

“The extension of these enhanced post-retirement benefits may trigger legitimate clamour by other state officers,” Njoka added, warning of a widespread ripple effect in public sector remuneration.

The commission's opposition comes at a time when the government is struggling to meet budgetary demands, including slashing school capitation funds from Sh22,244 to Sh16,900 per learner per year due to rising debt and declining revenue.

SRC now wants the Bill amended to align with public pay policy, protect its mandate, and avoid worsening the country’s financial strain through unjustified state officer benefits.

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