- County workers could face a new 7.5 per cent pension contribution under proposed legislation
- County governments may be required to match employee contributions by up to 15 per cent
- Bill proposes stronger safeguards for pension remittances and limited early access to benefits
County government employees could see a new 7.5 per cent deduction from their salaries under a Bill before Parliament seeking to establish a dedicated retirement scheme for the devolved workforce.
The County Governments Retirement Scheme Bill, 2026, seeks to create a uniform retirement benefits framework covering eligible county state officers, public officers and employees. Sponsored by Majority Leader Kimani Ichung’wah, the Bill would add a new mandatory contribution on top of existing statutory deductions such as NSSF, SHIF, the Affordable Housing Levy and PAYE.
Unlike those deductions, however, the proposed contribution would not function as a tax. Instead, it would be channelled directly into the employee’s own retirement savings.
The Bill states plainly: “A member shall, so long as the member remains in the employment of a sponsor, contribute to the Scheme a sum not less than seven and a half per cent of the pensionable emoluments of the member.”
What it means
Consider a county nurse earning Ksh80,000 in pensionable emoluments a month. Under the proposed 7.5 per cent rate, Ksh6,000 would be set aside for the new retirement scheme every month, on top of whatever NSSF, SHIF, housing levy and PAYE deductions already reduce her take-home pay.
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The financial burden would not fall on employees alone. County governments and other sponsors would be required to contribute alongside their staff, up to twice the employee’s contribution or 20 per cent of pensionable emoluments, whichever is lower. In practice, an employee contributing 7.5 per cent could see a matching employer contribution of up to 15 per cent.
To safeguard the scheme’s funding, the Bill also proposes that contributions owed by county governments be charged directly against the County Revenue Fund as a first charge, giving pension remittances priority over other county spending.
Sponsors that fail to remit contributions on time would face interest charges of 5 per cent of the outstanding amount for every month the payment remains overdue.
Early access allowed in specific cases
Members would be able to access their benefits before mandatory retirement under specified circumstances, including resignation, dismissal, ill health and emigration, subject to conditions set out in the Bill.
The proposal remains subject to the full legislative process and must still pass Parliament before it can become law.
By Benedict Aoya
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