Suffering retirees deserve accessing their pension contribution without delay

Pensioners are happy to hear that savings of up to Sh30,000 per month in retirement benefit schemes could soon be tax-exempt should Parliament pass a Bill that seeks to raise the figure from the current Sh20,000. Many of us have received nothing as a pension as some die from sickness, hardships and poverty despite having worked hard all those years.

The proposed law would motivate people to save more for retirement, which will also lower their tax liability. The proposed 50 per cent increase in the figure is contained in the Finance Bill, 2024, which seeks to amend Section 5 of the Income Tax Act that allows Kenya Revenue Authority to exempt from tax up to Sh240,000 annual income contributed as pension.

Pensioners now hope for the prompt passing of the Bill in Parliament and the President’s assent. Retirees hope to get tax-free pension and without delay.

Kimani Meja Njuguna, Kiambu

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As a pensioner, I smiled as I read your editorial, “Save retirees from agony” (Daily Nation, May 16). I agree with you that pensioners have not been treated well. Pensioners have remained at the mercy of their former employers, who see nothing good in them.

This has seen many of them die early due to hopelessness. The Pensions (Amendment) Bill, 2024 seeks to amend the Pensions Act, Cap 189, to include an automatic cost of living adjustment to the pensions earned by all retired public servants.

As you rightly suggested, private sector retirees should be included; all retirees spent their best years building the nation. Some private sector retirees get some semblance of COLA. But it is not guaranteed because it’s given at the discretion of the trustees, such that many years pass before one is mercifully granted.

It should be automatic and not left at the whims of a few unwilling trustees, who can easily be compromised and deny the pensioners their due.

James Omedo Kihali, Bungoma