The Salaries and Remuneration Commission (SRC) has moved to court to oppose a bid by outgoing governors and their deputies to have a lifetime monthly pension of Sh739,200 and Sh700,000 respectively.
Aside from the monthly pension, the politicians have expressed desire to include an annual lump sum payment similar to their current annual pay.
Besides the lump sum payment, they also want a 3,000cc four-wheel-drive car, fuel allowance, a driver, a personal assistant and a medical cover for local and overseas treatment.
According to SRC, the commission will require a total of Sh2.3 billion in just the first year to facilitate payment for all the 47 governors and 47 deputies.
At the moment, the law stipulates for a payment of Sh10.3 million and Sh6.94 million respectively for the period they serve.
However, the Council of Governors (CoG) moved to court in June demanding for a monthly pension similar to what State officers like the President and the Deputy President receive.
In response, SRC said that the move would not only lead to disparity in retirement benefits but also become an additional burden to taxpayers.
“Besides fiscal unsustainability, providing pension benefits as proposed by COG would distort the retirement structures for State officers and lead to disparity in retirement benefits between governors and other State officers,” said SRC CEO Anne Gitau.
According to SRC, they had already reached an agreement with CoG to set up a pension scheme not only for governors and their deputies but all State officers including the Attorney-General, Cabinet secretaries, judges and MPs.
“It is the respondent’s case that upon payment of gratuity, a State officer in the county government may also opt to join a personal pension plan by various financial institutions,” said Gitau.
At the moment, governors earn a monthly gross payment of Sh924,000 which translates to basic salary of Sh554,400. This means, their monthly pension currently stands at Sh443,520. Their deputies on the other hand, have a pension of Sh298,200.