Kenya: CPF Boss Kili Faults Proposal to Reduce Retirement Age Limit

Nairobi — CPF CEO Hosea Kili has faulted the proposal to scale down the retirement age, citing the risk of having the government spend more on retirees.

Kili, who spoke during the CPF Annual General Meeting, asserted that the proposal will similarly chock the pension scheme as members will pull out, thus killing an entire ecosystem through asset scale down.

"If you take them out of retirement where they are earning their own money, the government is going to fund them. It's a zero sum game. You better keep them working. I don't support the reduction of the retirement age," said Kili.

His statement comes on the back of similar concerns by Salaries and Remunerations Committee (SRC) chairperson Lyn Mengich, who is citing potential strains on the nation's pension system and the loss of valuable experienced workers from the labor force should the retirement age limit be lowered.

According to Mengich, the workers' age limit should be retained at 60 years for continued productivity and contribution to the workforce.

"The conversation should be what works for Kenya. If you say people retire at 55 it means they are pensionable at 55 yet they are still productive," she said.

In February, petitioner Charles Chege filed a legal suit seeking to abolish the retirement age requirement for employees in both the public and private sectors, including individuals with disabilities.

Chege argues that the current retirement age limits of 60 for regular employees and 65 for individuals with disabilities unfairly restrict certain workers, disregarding their competence and capability to continue working.

Similarly, President William Ruto had last week, as part of the austerity measures taken to cut down government expenditure, directed public servants who have attained the retirement age of 60 to proceed to retirement.

The head of state said that no extent will be offered for public servants in that category.

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