This latest report from AfriCOG examines the problem of presidential
and senior state officer’s retirement benefits in Kenya, a topic which
has been the subject of much heated discussion ever since the retirement
of Kenya’s second President, Daniel arap Moi. Public debate and
acrimony between government and the opposition
has recently reignited over the President’s refusal to sign the
Retirement Benefits (Deputy President and Designated State Officers)
Bill, 2013.
The government has over time developed multiple policy and legal regimes for the pensions of different state officers, rather than reforming the entire pensions and retirement benefits framework to be more responsive and equitable. This report examines the costs, legality and implications of the Retirement Benefits (Deputy President and Designated State Officers) Bill, 2013 currently under debate in the National Assembly and makes the case for reform. It clearly concludes that the pensions for senior officials as set – and envisioned in the proposed bill, are unconstitutional.
The debate on public sector pensions and in particular those pertaining to senior state officials is placed in the broader context of the structural problems and complexities that compromise financial affordabilityin the current arrangements. The design flaws that open the door to abuse and inequity, endangering economic sustainability are also highlighted.
Through this report AfriCOG raises critical questions around compliance with the constitution and examines the practices in other jurisdictions in order to make some recommendations on how to resolve this controversial issue. AfriCOG also proposes reforms to public sector pensions and adherenece to the constitution with the aim of preventing future predatory runs on the fiscus of the type which have become an unsavoury feature of our public life.