The Kenya County Government Workers Union (KCGWU) said limiting members’ deductions will reduce them to paupers upon retirement because it will result in inadequate pension/FILE
NAIROBI, Kenya, Jun 12-Nairobi County employees on Tuesday presented a petition to the National Assembly and Nairobi County Assembly to review the County Pension Scheme Bill, 2017 which seeks to reduce their pension deductions.
The contributions, according to the Bill will reduce contributionfrom 12 per cent to 7 per cent.
The Bill is currently before the National Assembly.
The Kenya County Government Workers Union (KCGWU) said limiting members’ deductions will reduce them to paupers upon retirement because it will result in inadequate pension.
The Nairobi staff branch Secretary Benson Waweru termed the Bill draconian saying that there was no public participation as the Bill affects them directly.
“This Bill must be stopped from seeing the light of the day, let them come up with a Bill that will accommodate all the interests,” he said.
He accused the Government interfering in their terms and benefits scheme without consulting county governments.
The Bill wants counties prohibited from deducting more than 30 per cent of workers pensionable income.
In the Bill also the county governments’ members of staff will be obliged to join a new umbrella pension scheme which will replace the Local Authorities’ Provident Fund.
“The proposed Scheme will provide one umbrella pension scheme for all 47 county governments besides being open to other persons approved by the Board,” reads the Bill.
Currently, the retirement contributions for county government staff are managed by LapFund, which was established in 1960.
All officers and staff employed by a county government, agency, corporation or associated organization shall, after the commencement of the County Government Act, subscribe to the County Pension Fund established under the County Pension Scheme Act.
“Contributions by and in respect of an employee shall cease to be payable from the day he reaches his normal retirement date or from any earlier date upon which he ceases to be a member of the Scheme.”
The Bill union said does not provide guidelines on how the Sh40 billion pension debt owed by County Governments will be settled.
The petition was received by Nairobi County Assembly Speaker Beatrice Elachi who called on President Uhuru Kenyatta and Deputy President William Ruto to intervene.
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