Former Councillors’ Pension Hopes Dashed as Treasury Cites Legal Hurdles 

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By The Weekly Vision Team

Kenya’s former councillors, who served under the defunct Local Government Authority, face a bleak future as the National Treasury has ruled out a proposed Sh200,000 one-off honorarium. National Treasury Cabinet Secretary John Mbadi, addressing the Senate Labour Committee, declared that no legal framework supports compensating over 12,000 ex-councillors, except for 328 who served 20 years continuously, as per a 1994 Attorney General circular.

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This decision has sparked outrage among former councillors, who feel neglected despite their years of public service.

Mbadi explained that councillors operated on a part-time, allowance-based system, unlike today’s salaried Members of County Assemblies (MCAs), who benefit from structured pension schemes like the Local Authorities Provident Fund (LAPFUND). The absence of formal retirement provisions in the old framework excludes most councillors from pensions. A 2023 Attorney General advisory reinforced this, stating that retrospective payments without legislation would be unlawful. “The fiscal space is tight, and we cannot open floodgates for unbudgeted claims,” Mbadi told the committee, chaired by Senator Julius Murgor.

The National Forum of Former Councillors, led by Geoffrey Gitau, has petitioned for relief, highlighting their dire circumstances. Many, now elderly, live in poverty, with some dying without recognition for their service. Gitau pleaded for President William Ruto’s intervention, but Mbadi insisted that any payment must be legislated by Parliament to avoid audit queries. The Senate’s 2022 resolution for a Sh1.5 million gratuity and Sh30,000 monthly pension was deemed unfeasible by an inter-agency task force, which found only 328 councillors eligible under the 1994 criteria.

Public sentiment, reflected in social media posts, decries the government’s stance, with some users arguing that ex-councillors deserve recognition for their role in pre-devolution governance. Senator Okong’o Mogeni urged Mbadi to propose solutions, warning of escalating tensions. Mbadi suggested integrating eligible councillors into social protection programmes like Inua Jamii, which supports vulnerable Kenyans. He also highlighted ongoing payroll integration to curb ghost workers and ensure remittances to pension schemes, aiming to prevent future disputes.

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