MP Introduces Pension Increase Bill to Protect Government Employees from Inflation
Kassim Sawa, a member of parliament for Matuga, introduced the Pension (Amendment) Bill 2024, which sought to augment government employees’ pensions, benefits, and allowances.
He added that the measure was intended to protect public personnel against inflation during times of economic turmoil.
Sawa noted that the primary goal of the bill was to amend the Pensions Act, Cap. 189, to include an automatic cost-of-living adjustment for all retired public officers’ pensions.
Additionally, he stated that the automatic cost of living adjustment, if put into effect, would be computed according to the growth of the consumer price index over twelve months concluding on June 30 of each fiscal year.
According to the proposal, the Kenya Bureau of Statistics (KEBS) would compute the consumer price index and publish the country’s inflation rate every month.
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In April, the inflation rate stood at 5 percent, a drop from previous months in 2024, with March at 5.7 percent, February at 6.3 percent, and January at 6.9 percent.
The relevant Cabinet Secretary would be in charge of posting information on the automatic cost of living adjustment in the Gazette notice under the new proposal. If implemented, these changes would apply to all government employees who retired after the bill went into effect.
Sawa went on to say that the measure aimed to utilize the most recent salary applicable to a job group as the basis for calculating pensions given to public officials who retired from that job group or its equivalent.
Under the current act, Pensions Act Cap 189, all officers have the absolute right to pension and gratuity, with all employees entitled to the pension upon retirement but with a few exemptions.
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Some of the exclusions are if the office is abolished if the officer is sent on compulsory retirement, and if the employee is incapable of completing the tasks due to medical reasons among other reasons.
The Act provides that a pension granted to an officer under this Act shall not be less than Ksh2,000 or such other sum as may be prescribed by the President from time to time, but shall not exceed the full pensionable emoluments drawn by the officer at the time of his retirement.
MP Introduces Pension Increase Bill to Protect Government Employees from Inflation
