The High Court in Nairobi has ruled that retiring governors and their deputies are not entitled to a defined benefit pension scheme similar to the one enjoyed by state officers at the national government level. Justice Lawrence Mugambi made this decision following a petition filed by the Council of Governors (CoG) against the Salaries and Remuneration Commission (SRC). The judge found the proposed pension scheme to be neither affordable nor fiscally sustainable.
The SRC argued that implementing such a scheme would have a ripple effect on all state officers at both national and county levels. It would divert resources away from development and service delivery, burdening future governments with the cost of lifetime benefits. Currently, governors and deputy governors receive a service gratuity at the end of their terms, calculated at 31% of annual basic pay for each year served.
Court blocks governors’ lifetime pensions
They also have the option to join a direct contributory benefit scheme. Justice Mugambi emphasized that court intervention can only occur if the SRC is shown to have abused its discretion or failed to fulfill its constitutional mandate, which the CoG did not demonstrate in this case.
The judge agreed with the SRC that allowing the proposed payouts would impose an additional burden on taxpayers and leave fewer resources for essential services. He noted that the gratuity payment and the option of a contributory scheme already provide adequate retirement benefits for governors and their deputies. The CoG had sought a lifetime monthly pension of Sh739,200 for governors and Sh700,000 for deputies, along with other perks such as a car, fuel allowance, personal assistant, and medical cover.
However, the court upheld the SRC’s position that such lifetime pensions are untenable given the need to prioritize public funds for social amenities like health, education, clean water, and sanitation. This ruling deals a significant blow to the retirement aspirations of county governors and their deputies while emphasizing the importance of fiscal responsibility and sustainable management of public finances.
