Alvin Mwangi @PeopleDailyKe
Labour and Social Protection Cabinet secretary Ukur Yattani wants Parliament to amend the Pensions Act to address the existing disparities and inequalities in the payment of pensions.
He said the ministry has developed memoranda for various Acts ready for submission to the Cabinet for consideration and necessary action.
The CS said among the highlights are proposal to factor regular cost of living adjustments which he said is a desirable feature of any retirement benefit scheme towards pension payment.
Yattani said pension needs to be adjusted to reflect the realities in the cost of living to allow pensioners’ standard of living to be maintained in retirement in terms of purchasing power.
“The current scenario where pension is subjected to three per cent increase every two years consigns retirees to poverty and early death,”he said.
Speaking during the Kenya Association of Retired Officers (Karo) Annual General Meeting in Nairobi yesterday, he said currently, pension benefit is less than the average absolute poverty index which averages Sh4,624 per adult per month.
Karo Nairobi Branch chair Ibrahim Hussein said healthcare burden has compelled many pensioners to borrow funds or sell family assets to offset exorbitant medical bills.