President William Ruto has failed to assent to the Pensions Amendment Bill that sought to provide set timelines for pension payments upon retirement of a public officer.
Announcing the development on Tuesday, National Assembly Speaker Moses Wetangula relayed that the President had reservations on two clauses presented to amend the Pensions Act (Cap 189).
In his submission, President William Ruto argued that Clauses 2 and 3 of the Bill may lead to inconsistencies with existing laws and create ambiguities in the administration of pensions.
Clause 2 proposes granting the Cabinet Secretary for Finance powers to make regulations on pensions, which he noted would conflict with Section 3(2) of the Pensions Act, which vests such powers in the President.
“Granting the Cabinet Secretary such powers creates a conflict in law that may lead to challenges in the implementation of the regulations,” the President's memorandum read in part.
Secondly, Clause 3 sought to provide clarity on when a pension becomes due, something that was flagged for its lack of precision.
Claiming that the clause does not specify whether the due date should be the date of retirement or the date of application for pension payment, the President stated, “Such ambiguity risks undermining the legal certainty required for the timely and orderly processing of pension claims."
Besides the two clauses, the President also pointed out that the objectives of the Bill could be achieved administratively through ongoing reforms, including the recent automation of pension processing systems that have significantly reduced delays.
