Public Servants to Access Pension Savings Early in Proposed Law

Public service employees who leave their jobs before retirement age may soon be able to access their pension savings.
This change is proposed in the Public Service Superannuation Scheme (Amendment) Bill, 2025. Sponsored by National Assembly Majority Leader Kimani Ichung’wah, the bill aims to resolve a significant issue that has prevented public servants from accessing their funds.
For years, employees have encountered significant difficulties when trying to access their pension fund contributions. The new bill is designed to remove these long-standing obstacles and make it easier for employees to access their savings.
Under the current system,public service pensioners can only withdraw fundsfrom the age of 50 or upon reaching retirement age.
In the new bill, the servants will have the liberty to claim every coin they earned, whether personal and government contributions, upon leaving employment.
“All retirement savings shall immediately vest in a member,” the legislation reads, highlighting its aim to guarantee full ownership of pension funds from day one.
Under the proposed legislation, workers will be able to choose whether to withdraw their accumulated savings as a lump sum or transfer them to another registered pension plan.
The bill also aims to ensure timely remittance of contributions.
Employers, including the Teachers Service Commission, the National Police Service and the Public Service Commission, would be required to remit deductions ‘no later than ten working days after the end of the month’, and would face penalties for non-compliance based on the previous year’s rate of return for the scheme.
The proposed legislation also aims to improve governance by restructuring the board of trustees to include representatives from key unions, such as the Kenya National Union of Teachers (KNUT) and the Union of Kenya Civil Servants.
The bill aims to make the management of the fund more accountable and responsive to the interests of all public servants.
Apart from improving accessibility and governance, the proposed law also seeks tointroduce flexible payout options.