Kenya’s proposed changes to pension laws have prompted submissions from the Retirement Benefits Authority and the National Treasury, putting the retirement benefits of dismissed public officers under scrutiny by the National Assembly Committee on Social Protection.
The committee, chaired by Thika Town MP Alice Ng’ang’a, received the submissions as lawmakers consider the Pension (Amendment) Bill, 2026, National Assembly Bill No. 19 of 2026.
The Bill seeks to amend Section 5 of the Pensions Act by deleting subsection (2) and make a consequential amendment to Section 68 of the Public Service Commission Act by deleting subsection (4). The proposed changes are intended to preserve an officer’s accrued pension and gratuity despite dismissal from public service.
The Retirement Benefits Authority, which regulates and supervises retirement benefits schemes in Kenya, supported the proposed amendments, arguing that pension benefits earned through service should not be treated as discretionary payments that an employer can withdraw.
In its memorandum to the committee, the Authority stated: “Pension and gratuity are deferred employment benefits earned through service. They are not a discretionary bounty payable at the pleasure of the employer.”
The Authority further argued that once the statutory conditions for pension accrual or vesting have been met, the benefits become an officer’s property and are protected against arbitrary deprivation under Article 40 of the Constitution.
“Once the governing statutory conditions for accrual or vesting are met, the benefits form part of the officer’ S property and are protected against arbitrary deprivation under Article 40 of the Constitution,” the Authority stated.
The proposed amendments would remove provisions that the Authority says allow subsequent dismissal to affect pension rights earned during completed service.
The Authority maintained that disciplinary proceedings and dismissal should not automatically extinguish retirement benefits already earned by a public officer.
It cited judicial decisions to support its position, arguing that pension rights accrued through service constitute protected property and should remain payable even if an officer is later dismissed.
The Authority also argued that the changes would align the statutory framework with constitutional principles and judicial interpretations on accrued retirement benefits.
“The Authority supports the proposed amendments. They align the statutory framework with the constitutional character of pension as an earned and vested property right and with consistent judicial authority that accrued retirement benefits cannot be forfeited merely because employment has ended through dismissal,” the memorandum stated.
The National Treasury also submitted its views on the Bill, raising questions about the proposed changes to existing pension provisions and their implications for public service administration and the management of public resources.
Its submission examined the proposed amendments to the Pensions Act and the Public Service Commission Act, including the implications of protecting pension benefits following dismissal.
The committee’s consideration of the submissions places the proposed legislation at the intersection of workers’ retirement security, disciplinary procedures and the government’s responsibility to safeguard public funds.
The Bill seeks to establish whether pension benefits accrued during public service should remain protected when an officer is dismissed, while lawmakers consider the legal and financial implications of changing the existing framework.
The committee will consider the submissions as part of its scrutiny of the proposed legislation and the public participation process before any further parliamentary action.