Nairobi, Kenya (TheDispatch.Digital) – Governors have encountered a significant defeat following a court ruling in favor of the Salaries and Remuneration Commission (SRC) in a pension dispute initiated by the Anne Waiguru-led Council of Governors (CoG).
The High Court determined that county-level governors and deputy governors retiring from their positions are not entitled to a Defined Benefit Pension Scheme akin to that available to State officers at the national level.
This verdict stems from a petition filed by the Council of Governors against the SRC at the Milimani Courts in Nairobi.
The SRC argued that the proposed Defined Benefit Pension Scheme for county leaders is neither financially feasible nor sustainable in the long term.
The SRC further emphasized that implementing such a pension scheme would detrimentally affect service delivery and development resources at both national and county levels.
“If the proposed scheme were implemented, it would create a ripple effect across all State officers at both the national and county levels, significantly reducing resources available for development and service delivery,” the SRC stated.
Moreover, the SRC highlighted that the pension plan would impose a significant financial burden on future governments and generations who would be responsible for covering the costs.
Had the courts ruled in favour of the CoG’s terms, the government would be obligated to provide lifelong benefits to all governors who have served terms in the counties.
Following the court’s decision, the SRC clarified that governors and deputy governors receive a service gratuity at the end of their terms, calculated at 31 percent of annual basic pay for each year of service.
The SRC also mentioned an additional option for governors and deputy governors to join a direct contributory benefit scheme if they choose to do so.
This ruling comes shortly after Lyn Mengich, Chairperson of the Salaries and Remuneration Commission, announced on July 3 a freeze on all proposed salary increases for state officials. Mengich noted that this move aligns with austerity measures recommended by the National Treasury.