Governors suffered a blow after the court ruled in favour of the Salaries and Remuneration Commission (SRC), in a case filed by the Council of Governors (CoG) over a pension row.

The High Court ruled that retiring governors and deputy governors at the county level are not entitled to a Defined Benefit Pension Scheme similar to one enjoyed by State officers at the national government level.

This judgement follows a petition that had been filed by the Council of Governors (COG) against the (SRC), at the Milimani Courts, Nairobi.

According to SRC, the proposed Defined Benefit Pension Scheme for governors and deputy governors is neither affordable nor fiscally sustainable.

The SRC also added that if the pension scheme were to be implemented, the service delivery and development resources would be affected nationally and at county levels.

“If implemented, the proposed scheme would have had a ripple effect on all State officers at both the national and county government levels, leaving little resources for development and service delivery,” read the statement in part.

Additionally, the SRC added that the pension plan would have been burdensome to the successor governments and generations who would bear the costs.

If the courts would have approved that the SRC accept the terms provided by the COG, the government would have to offer lifetime benefits for all governors who have served terms in counties.

Following this ruling, SRC avers that governors and deputy governors are paid a service gratuity at the end of their terms at the rate of 31 per cent of annual basic pay for every year served.

“Should they desire, an additional option also exists for governors and deputy governors to opt to join a direct contributory benefit scheme, the Mengich-led team added.

This comes shortly after the Chairperson of the Salaries and Remuneration Commission (SRC), Lyn Mengich on July 3 froze all the proposed salary increments for state officials.

While addressing the press, the SRC boss noted the move was part of the austerity measures recommended by the National Treasury.

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