Civil Servants to Be Allowed Transfer of Pension to Private Sector Retirement Funds

A new bill has been proposed in Parliament that aims to give public servants the freedom to transfer their earned pension benefits from the Public Service Superannuation Fund (PSSF) to a retirement plan of their choice upon exiting public service.

The bill seeks to enhance the portability of retirement benefits, a move that aligns with the National Retirement Benefits Policy. If passed, this legislation will allow public servants more flexibility and control over their retirement savings, ensuring they can carry their pension benefits to another plan or investment vehicle that best suits their future financial goals.

The proposed legislation is seen as a significant step forward in modernizing the retirement benefits system for public servants, offering them the same level of pension portability already enjoyed by private-sector employees.

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This change could encourage more public servants to plan and invest more strategically for their retirement, knowing that their pension savings are fully transferable.

By aligning with the National Retirement Benefits Policy, the bill underscores the government's commitment to creating a more dynamic and responsive retirement benefits framework. The goal is to ensure that all workers, regardless of sector, have the opportunity to maximize their retirement savings and secure their financial future.

Kenya Risks Losing Transit Business to Tanzania Due to Busia County’s New Fees

Kenya could lose out on crucial transit business to Tanzania if Busia County's plan to increase truck entry fees is implemented, transporters have warned.

The Busia County Finance Act 2023, set to take effect on August 1, 2024, will require all transit trucks and trailers entering the county to pay entry fees. This includes trucks crossing the borders at Busia and Malaba.

Under the new rules, the county will charge Ksh1,000 per entry for foreign trucks and Ksh400 for Kenyan trucks. Additionally, a Ksh500 parking fee will be levied on all trucks and trailers.

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The Kenya Transporters Association Limited (KTA) has voiced strong opposition to the plan, arguing that it will significantly increase the cost of doing business along the Northern Corridor, which is already facing stiff competition from Tanzania's Central Corridor.

KTA Chairman Newton Wang’oo criticised the fees, claiming they violate Article 209 of the Kenyan Constitution, which allows county governments to levy charges only for services rendered.

“KTA contends that Busia County's truck entry fees contravene Article 209 of the Kenyan Constitution. This article empowers county governments to levy charges on services rendered, stipulating a clear and direct link between the service and the charge to prevent arbitrary taxation,” Wang’oo stated.

KTA further argued that national roads are maintained by the national government, meaning county governments have no authority to restrict movement on these roads. They warned that the fees could drive traders to opt for the Central Corridor through Tanzania, making Kenya's Northern Corridor less attractive.