Public service employees in Kenya may soon access their pension savings before retirement, thanks to the proposed Public Service Superannuation Scheme (Amendment) Bill, 2025.
Sponsored by National Assembly Majority Leader Kimani Ichung’wah, the bill aims to solve long-standing challenges in accessing pension funds.
Currently, public servants can only withdraw contributions at age 50 or upon retirement. This has left many employees without access to their savings if they leave the service early.
Full Ownership of Pension Funds
The new bill proposes that all retirement savings immediately vest in the employee, including both personal and government contributions.
Employees will have the flexibility to:
- Withdraw the accumulated savings as a lump sum
- Transfer the funds to another registered pension plan
This gives workers more control over their financial future.
Timely Contribution Remittance
The bill also requires employers, including the Teachers Service Commission, National Police Service, and Public Service Commission, to remit pension contributions within ten working days after the end of each month.
Non-compliance will attract penalties based on the previous year’s rate of return for the pension scheme.
Improved Governance
The bill seeks to make fund management more transparent and accountable by:
- Restructuring the board of trustees
- Including representatives from major unions like KNUT and the Union of Kenya Civil Servants
This ensures that public servants’ interests are represented in the management of the fund.
Flexible Payout Options
Apart from improving accessibility and governance, the legislation introduces flexible payout options, allowing employees to access their funds in a way that best suits their needs.
If passed, the bill will mark a major milestone in protecting public servants’ financial rights while ensuring efficient management of pension resources.
