The Judges' Retirement Benefits Bill, 2025
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Dual Retirement Benefit Framework
The Bill splits retirement benefits into two distinct systems:
- Defined Benefit Scheme (Part II): Applies to judges in office at the commencement of the Act. Their pensions are charged directly on the Consolidated Fund, with options to commute up to one-quarter of their annual pension at a rate of twenty times the commuted amount.
- Defined Contribution Scheme (Part III): Applies to judges appointed after the commencement of the Act. These judges will participate in a newly created contributory pension fund.
Mandatory Pension Contributions
For judges appointed after the commencement of the Act, the Bill establishes a contributory framework:
- Member Contribution: 7.5% of the member's monthly pensionable emoluments is deducted and paid into the Fund.
- Government Contribution: The Government contributes 15% of the member's monthly pensionable emoluments.
- Vesting Rules: Benefits from the member's contributions and accrued interest vest immediately, while the Government's contributions vest after one year of pensionable service.
Lifetime Post-Retirement Perks
The Bill provides substantial non-pension benefits to retired judges and their spouses:
- Medical Cover: Comprehensive medical cover for life on the same terms enjoyed by serving judges.
- Diplomatic Passports: Issuance of diplomatic passports to retired judges and their spouses.
- VIP Airport Access: Access to Government VIP lounges at all airports within Kenya.
- Transport Allowance (Part II Judges): A monthly transport allowance equivalent to one-seventh of their basic salary at retirement for 120 months, payable as a lump sum upon retirement.
Establishment of a Board of Trustees
A corporate Board of Trustees will be established to administer the new Judges' Retirement Benefits Fund. The Board will consist of:
- A chairperson with at least twenty years' senior management experience appointed by the Cabinet Secretary.
- Representative judges from the Supreme Court, Court of Appeal, and High Court.
- A nominee of the Judicial Service Commission.
- The Principal Secretary to the National Treasury or their representative.
- The Chief Registrar of the Judiciary.
Bill No.
No. 27 of 2025
Gazette No.
Supplement No. 97 of 2025
Sponsor
Kimani Ichung'wah
Background
The Judges' Retirement Benefits Bill, 2025 represents a legislative effort to establish a structured, independent retirement benefits framework for judges of Kenya's superior courts. In development since the late 1990s, the bill intends to safeguard judicial independence and provide clear, statutory guidelines for judicial pensions and post-retirement perks.
Key Amendments
Division of Schemes
The Bill distinguishes between three classes of judicial officers:
- Judges in office at commencement (Part II): Retain a right to a non-contributory pension charged on the Consolidated Fund, with pensions computed on their pensionable emoluments on the date they cease to hold office.
- Judges appointed after commencement (Part III): Transition to a defined contribution system through a newly established retirement fund.
- Judges retired before commencement (Part IV): Applies to judges who retired after 27th August 2010 but before the commencement of this Act, granting them non-pension benefits like medical cover and diplomatic passports.
Pension Adjustments
For judges under the defined benefit system, pensions will be adjusted annually on July 1st based on the Consumer Price Index (CPI) reported by the Kenya National Bureau of Statistics. This annual increase is capped between a minimum of 1% and a maximum of 5%.
New Obligations
Mandatory Contributions
Under Section 26, the Government must deduct 7.5% of a new judge's monthly pensionable emoluments for their contribution, matched by a 15% contribution from the Government. The National Treasury is obligated to remit these funds to the custodian within ten working days after the end of the month.
Appointment of Service Providers
Under Sections 56, 57, and 58, the Board of Trustees must appoint an independent administrator, manager, and custodian registered under the Retirement Benefits Act (Cap. 197) to manage the assets and accounts of the Fund.
Conflict Disclosure
Trustees must disclose any direct or indirect private interest in matters under consideration by the Board. Failure to do so results in automatic disqualification from holding office as a trustee under Section 36.
Penalties
Remittance Defaults
If the Government fails to remit pension contributions within the stipulated ten-working-day window, it will be liable to pay penalties determined in accordance with applicable pension laws under Section 26(4).
Recovery and Protection of Benefits
Benefits granted under this Act are strictly protected. Under Section 68, pensions or gratuities cannot be assigned, attached, or levied upon, except for the express purpose of satisfying a debt due to the Government.
Transitional Provisions
Transfer of Accrued Benefits
Judges currently in office may elect, within twelve months of the Act's commencement, to transfer their accrued pension benefits from the judicial service pension scheme or other public service schemes into the Consolidated Fund, or elect to retain them under their original schemes.
Savings of Existing Laws
Pension benefits payable to judges who retired before the commencement of the Act will continue to be paid under the Pensions Act (Cap. 189) and, where applicable, the Widows' and Children's Pensions Act (Cap. 195). Furthermore, judges covered under this Act are specifically exempted from mandatory contributions to the National Social Security Fund Act (Cap. 258).
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