It looks like the end for a free pension which has been in place since independence has taken effect. In the government’s bid to reduce the burden of shouldering free pension which was becoming unbearable it has put the new scheme into law.
The scheme which was put into law in 2012 at the then government led by President Mwai Kibaki has been put into effect after it had been delayed over the years.
Treasury cabinet Ukur Yatani had already appointed a board of trustees which was to be headed by a CEO where members were drawn from all the government employment boards and workers representatives.
A worker aged between 45 years and below is to incur a deduction of 2.5% of their pensionable pay where then the government will top up with double the amount. Even though workers with the age of 45 years and above will continue to enjoy the free pension under the pension act cap 189 and it is also optional for them to join the Contributory pension.
Below is the new look for January salaries after 2.5% of the contributory pension scheme of phase one
J.G Current Scale After phase one of the pension scheme
B5  21,756 – 27,195 21,320.8-26, 651.1
C1  27,195 – 33,994 26,651.1 – 33,314.1
C2  34,955 – 43694 34,255.9 – 42, 820.1
C3  43,154 – 53,946 42,290.9 – 52,867
C4  52,300 – 55,604 51,254 – 54,491.9
C5  62,272 – 64,631 61,026.5 – 63,338.3
D1  77,840 – 85,269 76,283.2 – 23,563.3
D2  91,041 – 104,345 89,220.1 – 102,258.1
D3  104,644 – 118,210 102,551.1 – 115,845.8
D4  118,242 – 121,890 115,877.1 – 119,452.2
D5 131,380 – 157,656 128,752.4 – 154,502.8
Phase two has been set to be in effect coming January 2022 while the final phase will take effect in 2023. Proposed increment by Teachers Service Commission (TSC) due for July will help teachers against this current deductions.
