In a landmark ruling on July 25, Judge L. N. Mugambi of the Milimani Law Court, Nairobi, determined that retiring county governors and their deputies are not eligible for a defined benefit pension scheme similar to that of national government State officers.
The petition, filed by the Council of Governors (CoG) against the Salaries and Remuneration Commission (SRC), was denied based on fiscal concerns.
The SRC argued that the proposed pension scheme is neither affordable nor sustainable. Implementing it would significantly impact all State officers at both national and county levels, diverting resources away from essential development and service delivery projects.
The commission highlighted the long-term financial burden on future governments and generations, stressing that the existing gratuity system already ensures adequate social security.
Additionally, the SRC pointed out that every election cycle would introduce a new group of individuals eligible for lifetime pension benefits, further straining public finances.
Currently, governors and deputy governors receive a service gratuity at the end of their terms, calculated at 31% of their annual basic pay for each year served. They also have the option to join a direct contributory benefit scheme.
This ruling underscores the importance of maintaining fiscal responsibility while ensuring adequate social security for government officials.
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