Nairobi County Government has set aside Ksh 100 million to start the roll-out of a voluntary early retirement scheme for its staff aged 50 years and above.
A biometric report released by the county government in November 2019 revealed that about a half of City Hall employees are over 50 years
The report revealed that out of the 11, 603 City Hall workers, 5,709 are aged 50 years and above with 19 above the retirement age of 60 years.
Organisations seeking to reduce or reshape their staff frequently offer employees a package of incentives to encourage them to leave their jobs voluntarily, often before their customary retirement date.
The fund has been factored in the county's annual development plan (CADP), which was approved by the county assembly.
Devolution and Public Management Service CEC Veska Kangogo told the media that the fund would be channelled to retirement payments for the first batch of employees who have asked to leave.
"For those who will be leaving, we have to make sure all their pension contributions are with the retirement schemes so that they get their retirement package on time. Once the fund is released, then we will start the process immediately, " the CEC said.
She explained that City Hall had already developed a voluntary early retirement policy which had been delaying the process since it was mooted in 2018.
Kangogo added that the county government has an ageing workforce which is also sickly.
"Most of them have requested early retirement. We have been looking for funding and also ensuring that a policy is available and we are also up to date with their pension contributions, " she said.
In Kenya, the law provides that where an employee willingly applies for the voluntary early retirement on such terms as set out by the employer in the offer letter it is regarded as a new agreement between the employee and the employer.
The agreement is then taken as a separate and distinct contract from the HR manual and the initial contract of employment.
The employee cannot run away from it by claiming that its terms are less favourable than the terms offered under the HR manual or the contract of employment.
