Ruto Returns Pensions Bill To Parliament

President William Ruto has returned the Pensions (Amendment) Bill (National Assembly Bill No. 44 of 2022) to Parliament for reconsideration, citing legal inconsistencies in two key clauses.

National Assembly Speaker Moses Wetang’ula delivered the President’s memorandum on Tuesday, noting that the Head of State acted under Article 115 of the Constitution.

The Bill, sponsored by Kimilili MP Didmus Barasa, was passed by the House on August 7, 2022. It seeks to amend the Pensions Act to introduce timelines for payment of pensions to retired officers.

However, President Ruto raised concerns over Clauses 2 and 3 of the Bill. He said Clause 2, which gives the Cabinet Secretary for Finance powers to make regulations on pensions, clashes with Section 3(2) of the existing Pensions Act, which assigns those powers to the President.

“Granting the Cabinet Secretary such powers creates a conflict in law that may lead to challenges in the implementation of the regulations,” read part of the memorandum.

On Clause 3, the President observed that the proposed changes fail to clearly state when a pension becomes due—whether on the date of retirement or the date of application—posing a risk to legal clarity in pension processing.

The President further noted that the Bill overlooks the ongoing reforms in the pension sector, including automation efforts that have already improved service delivery and reduced delays.

“The Bill does not take cognisance of the recent digital reforms that have shortened the pension processing timelines and improved service delivery to retirees,” said Ruto.

Speaker Wetang’ula has directed the memorandum be committed to the Departmental Committee on Finance and National Planning. The committee has 21 days to consider the President’s reservations and table a report before MPs vote on whether to accept or reject them.

A two-thirds majority will be required should the House decide to reject the President’s proposals.