T he Committee on Implementation met with the Cabinet Secretary (CS), National Treasury and Economic Planning Prof Njuguna Ndung’u, and members of the Kenyan Association of Retired Officers (KARO), to discuss the implementation status of payment of pensions to retired Government officers.

In a session chaired by Hon Prof. Guyo Jaldesa (Moyale), the Committee sought explanations from the CS on the implementation status of a Report by the Departmental Committee on Labour and Social Welfare in the 12th  Parliament, and subsequent recommendations by the Salaries and Remuneration Commission (SRC) to Treasury on the same. “This is work in progress, and therefore, we have some limitations to drawing conclusions while addressing the issues of concern to the retirees. However, I can assure you that the issues will be fully resolved in due time, probably in the Budget of the 2023/2024 Financial Year,” said Prof Ndung’u.

The Report was made following the Lands Committee’s consideration of a petition by the KARO, seeking the National Assembly’s intervention in ensuring that they not only receive their dues but also push for a review of the existing guidelines on payment of pensions to accommodate several issues of concern.

“In the first quota of the next Financial Year, a comprehensive valuation course of all retired officers will be carried out by the Government, and once we have reliable results, we will undertake to implement the Committee’s and the SRC’s recommendations,” stated Prof. Ndung’u.

The pensioners made their case to the Committee, expressing disappointment with the speed with which their case has been executed. They cited their deteriorating health and other financial needs that have not been met.
“By the time SRC made their recommendations, an actuarial study had already been done by Alexander Forbes in 2015, thus the claim by Treasury that this needs to be done again makes no sense to us. We have more than a thousand people aged above 80 years earning less than Kshs1,000,” said Ahmed Hussein, the chairperson of KARO.

The pensioners told the Committee that in as much as their pensions have been coming in good time, the amount is insufficient and cannot meet their needs. They asked for equity, justice, and fair treatment bearing in mind the changing economic dynamics of our country.

“How can Treasury explain to anyone how a former Permanent Secretary who retired in 1995 earns less than Kshs20,000, while a former PS who retired in 2000 earns over Kshs200,000? Where is the fairness?” Posed JMr. John Wachira, a retired PS in the Office of the President.
Among the recommendations by the Committee on Lands was for the Treasury to among other things, review the Pensions Act and align it with the provisions of the Constitution and enable it to conform to the realities of the day, fast-track the process of the development of the National Retirement Benefits Policy to provide for the provision and management of retirement benefits in the country, and implement the recommendations by SRC on pension increase Policy, in an equitable manner. ,

The SRC, in two of its advisories to the Government in line with its mandate as provided for in the Constitution, recommended a discretionary one-off pension increase for retirees for the period 1991-2005 to compensate for inflation and amendment of the Pension (Increase) Act to provide for triennial review of pension-in-payment over and above the existing biennial increase effected in June 2005. However, these recommendations remain implemented seven years down the line.