The High Court has ruled that retiring county governors and their deputies are not entitled to a defined benefit pension scheme similar to that available for State officers at the national government level. This decision, made by Judge L. N. Mugambi on July 25 at the Milimani Law Courts in Nairobi, followed a petition by the Council of Governors (CoG) against the Salaries and Remuneration Commission (SRC).
The SRC argued that the proposed pension scheme is neither affordable nor fiscally sustainable. Implementing such a scheme would have significant financial implications, affecting all State officers at both national and county levels. The SRC warned that it would strain public finances, leaving fewer resources for development and service delivery.
According to the SRC, the scheme would also impose an undue burden on future governments and generations, who would need to cover the cost of lifetime benefits. The SRC maintains that the existing gratuity system already offers sufficient social security for retirees.
Currently, governors and deputy governors receive a service gratuity calculated at 31 percent of their annual basic pay for each year served. Additionally, they have the option to join a direct contributory benefit scheme if they prefer. The SRC’s stance reflects concerns about the financial impact and sustainability of expanding pension benefits.
