More than 226,500 employees working in the counties and eligible for pension would be transitioned to a new scheme if MPs approve a Bill currently before the National Assembly.
The County Governments Retirement Scheme Bill, 2026 seeks to establish a Fund for eligible county state officers, public officers and employees in the service of county governments, county government agencies, and associated organisations.
The government-backed Bill sponsored by Leader of Majority Kimani Ichung’wah seeks to repeal the Authorities Provident Fund, Cap. 212 and replace it with the new scheme.
National Assembly Majority Leader Kimani Ichung’wah.
Photo credit: File | Nation Media Group
A September 2025 report by the Salaries and Remuneration Commission (SRC) shows that county governments had 226,500 staff in 2024.
The Bill provides for the membership to the scheme, contributions by members and sponsors, the investment and management of the assets of the scheme, the payment of benefits, and the protection of rights and benefits.
The Bill also provides for transitional arrangements to facilitate the orderly transfer of members, assets, liabilities, rights and obligations from the Local Authorities Pension Fund (Lapfund) to the County Governments Retirement Scheme Fund, while safeguarding retirement benefits.
The Bill provides for the payment of benefits to the members of the scheme when they become due, social security of members by ensuring that members save to cater for their livelihood during their retirement and establishes a uniform set of rules, regulations and standards for the administration and payment of benefits for members of the scheme,
The Bill establishes the Scheme as a defined contribution scheme providing benefits including periodic payments including periodic purchase of an annuity.
“An eligible county State officer, public officer in the service of a county government or any other person approved by the Scheme Board may become a member of the Scheme under the auspices of a sponsor,” the Bill states.
“A sponsor shall, before being admitted to the Scheme, execute a deed of adherence.”
According to the Bill, as long as the member remains in employment of a sponsor, contribute to the scheme a sum not less than 7.5 percent of the pensionable emoluments of the member.
The Bill stipulates that a sponsor shall contribute to the scheme a sum not exceeding two times (15 percent) the contribution rate by the employee or 20 percent of the pensionable emoluments of the member, whichever is lower.
“A member of the scheme may make additional voluntary contributions to the scheme,” the Bill states.
“In addition to the contributions specified, the sponsor may take out and maintain a life insurance policy that has disability benefits in favour of every member of the Scheme, for a minimum of three times the annual pensionable emoluments of the member.”
The additional contributions will be deducted by a sponsor from the salary of the contributor in each month and paid into the scheme together with the contribution of the sponsor before the 10th day of each month.
The Bill states that where the sponsor is the county government, the contributions due to the scheme shall be charged directly to the County Revenue Fund as a first charge.
“Any contributions not paid to the Scheme by a sponsor within 15 days after the last day of the calendar month to which the contributions relate shall attract an interest during the they remain unpaid at a rate equal to five cent of the amount of that contribution and shall be added to the contribution for each month that the amount due remains unpaid, and any such additional amount shall be recoverable at the same time and in the same manner as the contributions to which it is added,” the Bill states.
“All contributions and interest thereon shall constitute a civil debt of the respective sponsor and shall be summarily recoverable by the Board as provided for by the Retirement Benefits Act or any other written law.”
As at the end of June 2024, the lowest county worker in Job Group CPS B18 earned a monthly salary of Sh13,280 while the highest, Job Group CPS B01, takes home Sh169,140.
The SRC implements a graduated salary increase for employees in the respective job groups in the county government. Therefore, expect a pay rise after one year if you are in the same job group.
State officers in the executive branch of the county government, including the County Governor, Deputy County Governor, and executive committee members, have different pay scales.
Currently, a governor earns a gross salary of Sh1,185,864, while the deputy takes home a gross of Sh799,420 monthly. Members of the executive committee earn a monthly salary of Sh368,212.
At the County Assembly, a speaker earns Sh587,830, the deputy takes home Sh466,661, while the Member of the County Assembly pockets Sh333,157 monthly.
