New parliamentary bill proposes 7 major changes to retirement benefits for county workers

A new bill has been proposed in Kenya to establish a dedicated retirement scheme for county government workers. The County Governments Retirement Scheme Bill, 2026, published in the Kenya Gazette Supplement No. 211, outlines a framework for membership, contributions, retirement benefits, and the management of pension funds. The legislation would create the County Government Retirement Scheme, governed by a Board of Trustees responsible for its oversight.

The bill details provisions for membership eligibility, withdrawal of membership or benefits, and contributions, including vesting of benefits, withdrawal upon retirement, and payment of retirement benefits. It also addresses the handling of retirement benefits in cases of death before or after retirement, requiring the maintenance of members' and dependants' details, and establishing dispute resolution for nominated beneficiaries and dependants.

The proposed scheme would feature a management structure with a fund manager, custodian, and administrator, along with provisions for a reserve account, annual estimates, auditing, financial reporting, prohibited payments from the Scheme, distribution of profits, accounts and audit, offences, and a "duty of care." The bill aims to create a structured financial institution to manage the retirement funds and ensure members receive their benefits according to the established rules.