Ruto Returns Pensions Bill to Parliament Over Legal Concerns

President William Ruto has declined to assent to the Pensions (Amendment) Bill, 2022, sending it back to the National Assembly for reconsideration, citing inconsistencies and ambiguities in key clauses.

The proposed law, sponsored by Kimilili MP Didmus Barasa, seeks to amend the Pensions Act (Cap 189) by introducing statutory timelines for the payment of pensions to retired public officers. The Bill was passed by the National Assembly on August 7, 2022, and subsequently forwarded to the President for approval.

However, in a memorandum to the House conveyed by National Assembly Speaker Moses Wetang’ula, the President raised reservations about Clauses 2 and 3, warning that the proposed changes could create legal confusion and hinder the administration of pension benefits.

Clause 2 proposes to empower the Cabinet Secretary for Finance to make regulations regarding pension payments. But President Ruto argued this would conflict with the existing Section 3(2) of the Pensions Act, which assigns such regulatory authority to 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 memorandum reads.

On Clause 3, which seeks to define when pension payments become due, the President noted the wording was vague and could result in confusion over whether payments should be calculated from the date of retirement or the date of application.

“Such ambiguity risks undermining the legal certainty required for the timely and orderly processing of pension claims,” the President stated.

President Ruto further observed that the Bill overlooks ongoing administrative reforms, including the digitisation of pension processing, which has significantly reduced delays.

Speaker Wetang’ula directed the President’s memorandum to the Departmental Committee on Finance and National Planning, which has 21 days to review the reservations and report back to the House.

The committee is expected to consult stakeholders before tabling its report, after which the House will vote either to accept the President’s reservations or reject them with a two-thirds majority, as required by law.