Nairobi Kenya — The National Assembly has approved the Pensions (Amendment) Bill, mandating that retirement benefits be processed within 90 days from the date they become payable.
Sponsored by Kimilili Member of Parliament Didmus Barasa, the Bill aims to expedite the processing and payment of pensions by amending the Pensions Act to establish a clear timeline for disbursement.
"Government ministries and departments will now be required to submit necessary documents to the Pensions Department within 30 days of an employee's retirement," stated the National Assembly.
The Pensions Department will have a 60-day window to process pension payments for retirees, addressing long-standing delays experienced in the payment of pensions upon maturity.
"The Bill does not delegate any legislative powers, nor does it limit fundamental rights and freedoms. The Bill concerns county governments in terms of Articles 110 (1) (a) of the Constitution," the Bill states.
It further clarifies that the Bill is not a money Bill for purposes of Article 114 of the Constitution, meaning its enactment will not require additional public funds.
Currently, there are no specific timelines for the payment of pensions, contributing to a significant backlog. The government's decision to review the retirement age from 60 to 55 years has exacerbated the situation, with some retirees waiting over five years to access their pension funds meant to sustain them after exiting formal employment.
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