The High Court in Nairobi has ruled that retiring governors and deputy governors are not entitled to a Defined Benefit Pension Scheme similar to one enjoyed by State officers at the national government level.
Justice Lawrence Mugambi arrived at the conclusion after a petition was filed by the Council of Governors against the Salaries and Remuneration Commission (SRC).
It was decided that the proposed Defined Benefit Pension Scheme for governors and deputy governors is neither affordable nor fiscally sustainable.
If implemented, the proposed scheme would have had a ripple effect on all State officers at both the national and county government levels, leaving little resources for development and service delivery.
Further, the proposed scheme for governors and deputy governors would have been burdensome to the successor governments and generations that must bear the burden of underwriting the cost of a lifetime benefit when the option of gratuity already provides adequate social security.
Additionally, this would also have meant that each turnover of a governor and deputy governor during each election period would have added to the pool of freshly elected individuals eligible for lifetime pension benefits, hence, straining the public finances.
Though governors and deputy governors are State officers, it is not automatic that each State officer must be treated in the same way regarding retirement benefits.
There are peculiarities of the positions, and constitutional and statutory principles that guide such benefits, as determined by SRC under Article 230 of the Constitution of Kenya, 2010, and SRC Act, 2011
Therefore, SRC avers that governors and deputy governors are paid a service gratuity at the end of their terms at the rate of 31 per cent of annual basic pay for every year served.
EACC said should they desire, an additional option also exists for governors and deputy governors to opt to join a direct contributory benefit scheme.