NAIROBI, Kenya, Mar 5 – Treasury Cabinet Secretary John Mbadi says there is no legal basis to pay gratuity to former councilors.
Speaking before the Senate Plenary Wednesday, Mbadi however stated that eligible individuals will be incorporated into the Inua Jamii social protection program.
The CS explained that the delay in implementing the October 18, 2018, Senate resolution of the Interagency Task Force stemmed from a lack of legal backing.
“The Attorney General, in a legal opinion dated May 8, 2023, advised that there was no legal basis to support the proposed honoraria payment of Sh200,000 to former councilors who served for less than 20 years,” the CS stated.
He further referenced a circular from the former Ministry of Local Government, which limited pension or gratuity payments to councilors who had served continuously for at least 20 years as of December 13, 1993.
Mbadi additionally highlighted the absence of a structured formula to determine the benefits, as councilors were not salaried employees but instead received allowances that varied across regions.
As a result, the proposal to allocate Sh2.38 billion to approximately 11,919 former councilors lacked the necessary legal and policy framework.
Given the legal constraints, the National Treasury opted to integrate eligible former councilors into the Inua Jamii program, a government initiative designed to support elderly citizens.
“Former councilors who meet the eligibility criteria form part of the persons for inclusion in the program,” he said, adding that the State Department for Social Protection is verifying registrants in collaboration with relevant government agencies.
The CS also pointed to the National Retirement Benefits Policy, approved by the Cabinet in October 2023, which aims to provide a harmonized framework for retirement benefits.
“To further strengthen the legal framework, the government established a multi-agency committee on September 17, 2024, to review and align public service pension schemes with the Constitution of Kenya 2010,” he noted.
The CS noted that the National Treasury will collaborate with the Office of the Auditor General to conduct a forensic audit of the 328 former councilors initially identified for benefits to sort out the issue of timelines for gratuity payments and identifying beneficiaries of deceased councilors.
“This audit will verify those who are still alive and identify rightful beneficiaries for those who are deceased,” he stated.
The CS reassured that the government remains committed to addressing the welfare of former councilors, but only within the confines of the law and available resources.
“While the initial recommendations of the Senate and Task Force lacked legal backing, the alternative approach through Inua Jamii, coupled with the broader national retirement benefits policy, seeks to provide sustainable and legally sound interventions for retired public servants,” he stated.
