The Pensions Department paid pension increase for all Government Retirees who retired on or before 30th June 2005. The Department effected the increase as from July 2006.
Minimum Pension was increased by 300% from Kshs. 500 per month to KShs.2, 000 per month.
All pensioners earning KShs1, 000 or less every month had their pensions reviewed to KShs2, 000 per month.
All other pensions were increased by 3%. However, the initial minimum increase of the monthly pension was set at KShs.1, 000.
Pension increases for retired officers was paid in the July 2006 Payroll to their bank accounts together with arrears for the period 1st July 2005 to 30th June 2006.
Pension increases for Dependants, which are calculated manually, were paid in the August 2006 payroll and subsequent payrolls as they are completed. Arrears for the period 1st July 2005 to 30th June 2006 were also paid. Where a pensioner died leaving more than one spouse, the new pension amount was divided equally among the spouses.
Pensioners whose five year dependant pension ceased between 1stJuly 2005 and 31st May 2006 will also be paid their pension increase arrears once their calculations are finalised. Those whose dependant pension ceased in June and July 2006 were paid the increase arrears in the August Payroll.
In addition, a pension increase at the average inflation rate but capped at a maximum of 3% will be granted every two years with the next increase due on 1st July 2007.
Future pension increase is now guaranteed as the Government has set a positive precedent since the 3% biennial increment will be in law and Government will have to implement it.