Civil Servants Salaries: Salaries for all teachers, police officers and all civil servants in Kenya have reduced, starting from those paid for the month of January. The more than 530,000 civil servants are now receiving take-home salaries that have reduced by 7.5 percent.
These cuts are part of their contributions to the pension savings scheme.
“The employees attached to ministries and State agencies will see a portion of their salaries sliced for onward remittance to the soon to be created Public Service Superannuation Scheme (PSSS). This means that State workers will cede about Sh. 2.4 billion monthly or Sh. 28 billion to the fund that will emerge as Kenya’s largest pension scheme,” a report on the deductions said.
Meet DP Ruto’s close ally who is building Sh. 6 billion mall
According to the National Treasury Cabinet Secretary Ukur Yatani the pension scheme will have a board and chief executive officer. The establishment of the scheme, he said, is geared towards reducing the pension burden that is shouldered by the exchequer.
“Membership to the scheme will be mandatory to all new entrants upon commencement of the Act and all employees aged below 45 as at the date. Employees aged 45 years and above will have an option to join the scheme by completing the Public Service Superannuation Scheme option form,” the National Treasury said in a statement.
Civil servants in Kenya were initially supposed to contribute 2 per cent of their monthly salary to the scheme in the first year, five per cent in the second and 7.5 per cent from the third year.
Kenyan lady returns from abroad to turn dry Turkana into green farms
“The government will match the contributions with an amount equivalent to 15 per cent of every workers’ monthly pay. This will be equivalent to about Sh. 6.9 billion monthly contribution or Sh. 55.87 billion annually, turning pension expenditures to one of the largest budget items,” the report said. Civil Servants Salaries.
