Court finds retired governors, their deputies not eligible for pension

While dismissing the petition, the judge concurred with SRC that allowing payout would be an additional burden to taxpayers and would have a ripple effect on all State officers at the national and county government levels, leaving little resources for development and service delivery.

"Allowing the defined benefit pension for governors and their deputies will be disproportionately burdensome to the successor governments and generations that have to bear the burden of underwriting the cost of a lifetime benefit when the option of gratuity, which if managed well can provide adequate social security," said Justice Mugambi.

The Judge said the CoG claim that the SRC has failed to provide a retirement benefit for the Governors and their deputies thereby violating Article 43 (1) (e) is not tenable in view of the payment of gratuity equivalent to 31 per cent total basic pay for every year served at the end of each term and the additional option that exists of joining a direct contributory benefit scheme for governors and the deputies.

"The court finds that contrary to the allegations made by the petitioner, SRC has already set out retirement benefits in form of gratuity payment and approved the policy for the establishment of direct contributory scheme for state officers at the County level who include the Governors," the judge said.

He also found that the proposed Defined Benefit Pension Scheme for governors and deputy governors is neither affordable nor fiscally sustainable.

Governors and their deputies were seeking a lifetime monthly pension of Sh739,200 and Sh700,000 respectively, in line with the payouts offered to retired presidents, deputy presidents, Chief Justices and parliamentary Speakers.

Besides the monthly pay, they were also seeking a lump sum payment equivalent to their one- year pay, a 3,000cc four-wheel-drive car, fuel allowance, a driver, a personal assistant and a medical cover for local and overseas treatment.

But SRC opposed the request by the CoG, saying that it is untenable to grant the governors and their deputies lifetime pensions.

The commission argued that funding for pension schemes comes from government revenues, which primarily consist of taxes collected from Kenyans used to provide for social amenities such as health, education, clean water and proper sanitation
among others.

" Approving the petitioner’s proposal would have a ripple effect on the amount left to cater for these important social amenities, thus exposing the taxpayers to violation of their rights as enshrined in the Constitution," SRC told the court.