Editor's Review

The ruling was issued by Justice Lawrence Nthiga Mugambi at the Milimani Law Courts.

Retiring governors and deputies are not entitled to a defined benefit pension scheme similar to one enjoyed by state officers at the national government level, the High Court has ruled.

In a statement on Wednesday, July 31, by the Salaries and Remuneration Commission (SRC), the  proposed pension scheme was unaffordable and fiscally unsustainable. 

The ruling by Justice Lawrence Nthiga Mugambi at the Milimani Law Courts came after the Council of Governors (COG) filed a petition against SRC.

"The proposed Defined Benefit Pension Scheme for governors and deputy governors is neither affordable nor fiscally sustainable. If implemented, the proposed scheme would have had a ripple effect on all state officers at both the national and county government levels, leaving little resources for development and service delivery.

"Further, the proposed scheme for governors and deputies governors would have been burdensome to the successor governments and generations that must bear the burden of underwriting the cost of a lifetime benefit when the option of gratuity already provides adequate social security," read part of the statement by the SRC.

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SRC boss Lynn Mengich.

The commission further noted that although governors and deputy governors are state officers, it is not automatic that each state officer must be treated in the same way regarding retirement benefits.

"There are peculiarities of the positions, and constitutional and statutory principles that guide such benefits, as determined by SRC under Article 230 of the Constitution of Kenya, 2010, and SRC Act, 2011. Therefore, SRC avers that governors and deputy governors are paid a service gratuity at the end of their terms at the rate of 31 percent of annual basic pay for every year served," SRC stated.

However, the commission said that there was an additional option for governors and deputy governors to join a direct contributory pension scheme if they wished.

The defined benefit pension plan provides retirement payments based on a formula considering the length of service and the annual basic salary at retirement.