Section of Workers Face Further Salary Deductions in New Law

Under the new law, employers as well as other sponsors who fail to remit contributions on time would also face financial consequences, with heavy penalties...

✨ Key Highlights

Kenyan county government workers may face a new 7.5% salary deduction under the proposed County Governments Retirement Scheme Bill, 2026, aimed at establishing a unified retirement framework.

The proposed deduction of 7.5% would be levied on pensionable emoluments, adding to existing statutory deductions.
Key stakeholders include county governments and their employees, with the Bill currently before Parliament.
Employers would contribute up to twice the employee's contribution or 20% of pensionable emoluments, whichever is lower, and overdue contributions would attract a 5% monthly interest.

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