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Kenyan taxpayers to bear an extra KSh18 billion in pension payments to civil servants

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The total amount of pension payments to public servants is set to increase by 21 per cent in the next financial year. The growth is due to adjustments to the cost of living and a growing list of retirees. The Parliamentary Budget Office estimates the pension bill will increase from KSh86.3 billion in 2018/2019 to KSh104.5 billion in 2019/2020.

The Pensions Increase Act states that starting on the 1st of July 2005 and every two years after that, a 3 per cent pension increase shall be paid to Public officers including the military and civil servants.

The director of Pensions Mr. Shem Nyakutu says that the rise in pension payments in 2019/2020 is due to the bi-annual 3 per cent increment in pension payout to government workers. The director also says that 20,300 public officers will attain the retirement age of 60 years in the coming financial year and therefore lead to increased pension bill.

The Pensions Department indicates that approximately 300,000 public servants are covered under the government pension plan. The workers include teachers, police, and administration officers.



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