Politics

Chepkwony’s illness sparks fresh debate on Governors’ retirement benefits

Despite once enjoying heavy security, aides, official vehicles and the title of His or Her Excellency, many former county chiefs quietly return to ordinary lives after serving their terms, losing most privileges tied to office.

Former Kericho Governor Paul Chepkwony’s struggle with illness has brought renewed attention to the difficult lives some county bosses face after leaving office, with leaders now pushing for the creation of a retirement benefits scheme for governors and their deputies.


A fundraising drive planned for Friday at the Weston Hotel in Nairobi to support Chepkwony’s specialised treatment abroad has stirred debate over the welfare of former governors once they exit power.


Despite once enjoying heavy security, aides, official vehicles and the title of His or Her Excellency, many former county chiefs quietly return to ordinary lives after serving their terms, losing most privileges tied to office.


Chepkwony has reportedly been unwell for the last five years and has kept away from public life, only appearing occasionally during treatment at local hospitals.


Governors currently receive gratuity amounting to 31 per cent for every year served, but unlike Members of Parliament, they do not have a pension plan or medical cover after leaving office.


Once out of office through elections, impeachment, illness, death or after completing two terms, governors also lose bodyguards, aides, cooks, gardeners, administrators and other staff attached to their residences.


The situation has reignited criticism over the lack of financial security for county bosses after office, with some observers arguing that the absence of a retirement package partly fuels corruption in devolved units.


While MPs who serve two terms qualify for pension benefits, governors and deputy governors who serve a similar period leave office without a comparable arrangement.


The benefits enjoyed by retired presidents and deputy presidents remain far above those available to county leaders.


According to Gazette Notice 8792 of July 27, 2022, the President earns a monthly gross salary of Sh1,443,750 while the Deputy President receives Sh1,227,188.


Retired presidents and deputy presidents enjoy security, vehicles, secretaries, administrators, medical cover, furnished offices and monthly pay equivalent to 80 per cent of the salary earned by a sitting president. They are also entitled to a lump sum equivalent to one year’s salary for every year served.


Governors earn Sh900,000 monthly, made up of a basic salary of Sh594,000, house allowance of Sh200,000 and salary market adjustment of Sh196,000.


Deputy governors take home Sh684,233 monthly, including a basic salary of Sh410,540, house allowance of Sh100,000 and salary market adjustment of Sh173,693.


The Salaries and Remuneration Commission states that the pay remains fixed throughout a state officer’s term unless reviewed.


County bosses are entitled to official vehicles with engine capacities not exceeding 3000cc, alongside car loans of up to Sh10 million for governors and Sh6 million for deputies at an annual interest rate of three per cent.


The mortgage scheme runs for 20 years while car loans are payable within five years through county treasuries.


Governors, their spouses and up to four children aged below 25 also receive annual medical insurance while in office.


The package includes Sh10 million inpatient cover, Sh300,000 outpatient cover, maternity cover of Sh150,000 and dental and optical cover of Sh75,000 each.


“A state officer serving or appointed for a fixed term of office shall be paid a service gratuity at the rate of 31 per cent of the annual pension emoluments for the term served,” the SRC says.


The commission adds that where a pension scheme is established for state officers on fixed terms, it determines employer contributions and other retirement benefits.


However, it states clearly that a state officer cannot enjoy both pension and gratuity from the same public institution for the same period of service.


Governors are also entitled to group life insurance and personal accident cover worth three times their annual pensionable earnings, while governors receive Sh20,000 airtime monthly and deputies Sh15,000.


In January, President William Ruto directed his United Democratic Alliance administration to establish a retirement benefits scheme for governors to prevent them from falling into hardship after leaving office.


“People who have secured leadership positions should not become a disgrace to themselves and to the community. The instructions of this council to the Executive and Legislature is that we expedite the exercise,” President Ruto said.


Council of Governors Chairman Ahmed Abdullahi recently backed the proposal, saying county leaders sacrifice heavily while serving the public.


“The President has pronounced himself on the establishment of a retirement benefits scheme for the leadership of devolved governments,” the Wajir governor said.


“We are looking forward to the legislative establishment and implementation of the scheme.”


The proposal has however faced resistance from the SRC, which warned that extending pension arrangements to all state officers could drain public resources meant for development and essential services.


Senate Majority Leader Aaron Cheruiyot and National Assembly Majority Leader Kimani Ichung’wah have supported the plan, arguing that former governors should not sink into poverty after serving the public.


Bomet Governor Hillary Barchok said the current arrangement assumes county bosses can comfortably sustain themselves once they leave office.


“It does not put into consideration the sacrifices they make while in office,” Prof Barchok said.


“We are confident that the directive by the President on the establishment of the retirement benefits scheme for governors, deputy governors, speakers and Members of the County Assembly will be implemented.”


The debate comes months after the High Court ruled on July 25, 2024 that governors and deputy governors were not entitled to the Defined Benefit Pension Scheme enjoyed by some state officers in the national government.


The case followed a 2022 petition filed by the Council of Governors against the SRC.


Justice L. N. Mugambi ruled that the proposed pension arrangement was financially unsustainable.


Under the Parliamentary Service Scheme, MPs serving one term receive a Sh5.8 million send-off package, while those serving at least two terms qualify for Sh7.8 million and a lifetime monthly pension of Sh127,000.


Those who serve three terms receive a monthly pension of Sh191,000 for life.


Governors, deputy governors, county assembly speakers and MCAs do not enjoy similar benefits regardless of the years served.


In 2021, the County Assemblies Forum proposed the County State Officers Pension Scheme Act to establish improved retirement benefits for county leaders.


The proposal sought to create a County State Officers Retirement Benefits Scheme tasked with developing and awarding retirement packages to county officials.


Among the proposals was a plan for governors serving two terms to receive an Sh11.1 million lump sum and a monthly pension of Sh739,200 for life.


It now remains unclear whether county leaders will secure the proposed retirement benefits in the next budget cycle after losing the legal battle in court.

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