The National Assembly has approved the Pensions (Amendment) Bill 2022. The legislation, passed on Wednesday, August 7, 2024, aims to streamline the processing and payment of pensions, potentially benefiting thousands of retirees across the country.
The bill, sponsored by Hon. Didmus Barasa of Kimilili, introduces strict timelines for pension 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. The Pensions Department will then have 60 days to process and initiate payments.
“This Bill will ensure that people who retire in this country get their pensions in a period of not more than 90 days, solving the current backlog,” said Hon. Barasa during the third reading of the bill.
The legislation has garnered widespread support from Members of the National Assembly, who view it as a crucial step towards addressing the financial challenges faced by retirees. Hon. Daniel Manduku of Nyaribari Masaba emphasized that the bill “will bring much-needed financial stability to senior citizens.”
Many lawmakers highlighted the current difficulties faced by retirees in accessing their entitlements. Hon. Julius Rutto of Kesses pointed out, “Retirees are going to bed hungry without their benefits. This Bill will protect them and ensure timely access to their pensions.”
The new legislation represents a significant improvement over the current system, where pension payments can be delayed for extended periods. Hon. Peter Kaluma of Homabay noted, “Many retirees wait up to 20 years to receive their pensions. The proposed 90-day timeline is a significant improvement.”
The bill also aims to address the backlog of pension cases that has accumulated over the years. Hon. Dr. John Mutunga of Tigania West stated, “We need to have retirees taken care of and their issues handled. Requiring the pensions department to process in a timely manner will work and help clear the backlog.”
The Pensions (Amendment) Bill 2022 is now awaiting presidential assent to become law. If enacted, it could mark a turning point in Kenya’s pension system, providing much-needed relief to retirees who have long struggled with delays in receiving their benefits.
