A proposed Bill before the National Assembly could change how pension benefits are treated when public officers are dismissed from their jobs.
The Pensions (Amendment) Bill, 2026, sponsored by Emuhaya MP Omboko Milemba, seeks to protect pension and gratuity benefits that public officers have earned, even where they are later removed from service through dismissal.
Published in the Kenya Gazette Supplement No. 93 on April 8, 2026, the Bill proposes amendments to the Pensions Act and the Public Service Commission Act.
At the centre of the proposed changes is a question that could affect thousands of current and former public officers: Should losing a job automatically mean losing retirement benefits accumulated over years of service?
What the Bill proposes
The proposed law seeks to remove Section 5(2) of the Pensions Act, a provision that currently preserves the government’s authority to dismiss a public officer without compensation despite the broader recognition of pension and gratuity rights.
Under the existing legal framework, a public officer who completes at least 10 years of pensionable service acquires vested retirement benefits. However, other provisions of the law can result in those benefits being forfeited when an officer is dismissed.
Milemba’s Bill seeks to change that relationship by separating disciplinary action from pension entitlement.
In simple terms, the government would still retain the power to discipline or dismiss a public officer, but dismissal would no longer automatically erase retirement benefits that the officer had already earned.
Changes proposed to the Public Service Commission Act
The Bill also proposes an amendment to Section 68(4) of the Public Service Commission Act.
Currently, the law provides that a public officer who is dismissed may lose claims to pension, gratuity, annual allowances and other retirement awards.
The proposed amendment would remove this automatic forfeiture of retirement benefits.
Other consequences associated with dismissal, including the loss of employment and certain privileges, would remain in place. The proposal is therefore not designed to stop disciplinary action against public officers but to protect benefits earned through years of pensionable service.
Why the amendment is being proposed
According to the sponsor, the current system can leave public officers who have served for many years without access to retirement benefits after dismissal.
The Bill argues that pension and gratuity should be treated differently from employment itself because they represent benefits accumulated during an individual’s period of service.
The proposed changes are also linked to Article 41(1) of the Constitution, which guarantees every person the right to fair labour practices.
Supporters of the amendment could argue that an employee should face the consequences of misconduct or disciplinary proceedings without necessarily losing benefits already earned over a long period of public service.
Dismissal would still remain a disciplinary option
The Bill does not seek to make public officers immune from dismissal.
Under the Public Service Commission Act, dismissal remains among the disciplinary measures available in cases involving misconduct or other offences. Other penalties include reprimands, delayed salary increments, delayed promotions and reduction in rank or seniority.
What the proposed amendment seeks to change is the financial consequence that follows dismissal.
If passed, an officer could lose their position but retain pension and gratuity benefits that had already been earned under the law.
What happens next?
The Bill will have to go through the parliamentary process before it can become law.
Members of the National Assembly will debate the proposed amendments and may approve, reject or make further changes to the legislation.
If enacted, the law could significantly reshape retirement protections within Kenya’s public service by establishing a clearer distinction between the loss of employment and the loss of earned pension benefits.
The Bill also states that it does not delegate legislative powers, limit fundamental rights or directly concern county governments. It is further classified as not being a money Bill under Article 114 of the Constitution.
For public officers, especially those who have spent decades in government service, the proposed changes could mean that dismissal from a job would no longer necessarily bring an end to the retirement benefits earned along the way.
