President William Ruto has referred the Pensions (Amendment) Bill (National Assembly Bill No. 44 of 2022) back to the National Assembly for reconsideration in line with Article 115 of the Constitution.
The Bill, which was sponsored by Kimilili Member of Parliament Didmus Barasa seeks to amend the Pensions Act (Cap 189) to provide statutory timelines within which pension should be paid to a retired officer.
It was passed by the National Assembly on August 7, 2022 and presented to the President for assent.
In his memorandum, the President expressed reservations on Clauses 2 and 3 of the Bill, noting that the provisions may lead to inconsistencies with existing laws and create ambiguities in the administration of pensions.
President observed that the clause 2 proposal to grant the Cabinet Secretary for Finance powers to make regulations on pensions would conflict with Section 3(2) of the Pensions Act, which vests such powers in the President.
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Clause 3, which sought to provide clarity on when pension becomes due, was flagged for its lack of precision. The President pointed out that it does not specify whether the due date should be the date of retirement or the date of application for pension payment.
Further, the President underscored that the intended objectives of the Bill could be achieved administratively through ongoing reforms, including the recent automation of pension processing systems that have significantly reduced delays.
Departmental Committee on Finance and National Planning is now expected to engage relevant stakeholders before tabling its report, paving the way for the House to vote either to accommodate the President’s reservations or reject them by a two-thirds majority, in accordance with the law.
By Obegi Malack
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