NAIROBI, Kenya – Civil servants who leave public service before retirement could soon walk away with their full pension savings if a new Bill before Parliament is passed.
The Public Service Superannuation Scheme (Amendment) Bill, 2025, sponsored by National Assembly Majority Leader Kimani Ichung’wah, proposes to grant public servants immediate access to both their own contributions and those made by the government upon exit from service.
Currently, employees only gain full ownership of government contributions after ten years of service, with access restricted until they reach 50 years or retire.
This has left thousands of teachers, police officers and other workers queuing for years at pension offices to claim their dues.
“All retirement savings shall immediately vest in a member,” the Bill reads, in what would mark a fundamental shift in Kenya’s public service retirement framework.
Flexible Options for Workers
If approved, civil servants will have the choice of withdrawing their savings as a lump sum or transferring them to another registered pension scheme.
The Bill also allows structured withdrawals to provide retirees with flexible income streams.
The proposed law further requires employers such as the Teachers Service Commission, Public Service Commission, and National Police Service to remit contributions within ten working days after the end of each month.
Penalties will apply for delays, calculated based on the previous year’s rate of return for the scheme.
Accountability and Governance Reforms
To enhance accountability, the Bill seeks to restructure the scheme’s board of trustees by including representatives from key unions such as the Kenya National Union of Teachers (KNUT) and the Union of Kenya Civil Servants.
It also requires annual general meetings to be held six months before the end of each financial year, enabling members to scrutinise the fund’s operations.
Major Shift in Pension Policy
Kenya’s pension system has faced criticism for inefficiencies, delayed payments, and lack of transparency.
Analysts say the amendments, if enacted, would overhaul how pension savings are managed, giving civil servants greater control over their finances.
The country’s pension assets crossed the Sh2 trillion mark in 2024, but delays and bureaucratic bottlenecks have prevented workers from fully benefiting from their savings.
If Parliament adopts the reforms, they could end years of frustration for hundreds of thousands of public servants, ensuring timely access to retirement savings and strengthening trust in the system.
