This archive report was first published on 4 August 2020.
Kenya's civil servants, including police and teachers, are set to face a 7.5pc salary pay cut from January as they start contributing to a new pension savings scheme.
The move, announced by Treasury Cabinet Secretary Ukur Yatani, aims to reduce the country's pension burden following massive revenue losses due to the Covid-19 pandemic.
Under the new scheme, civil servants will contribute a portion of their salary to the Public Service Superannuation Scheme (PSSS), which will be mandatory for new entrants and employees under 45 years old.
Employees aged 45 and above will have the option to join the scheme by completing an opt-in form.
The monthly contributions are expected to total Sh2.4 billion, making PSSS Kenya's largest pension scheme.
Benefits accrued prior to joining the new scheme will be recognized and acknowledged through a letter issued by the Treasury.
On Wednesday, CS Yatani is set to formally announce the setting up of PSSS, including the board, CEO, and January date for the start of deductions.
