Retired civil servants get 3 percent pay increase in July

More than 300, 000 retired civil servants will from July receive a three percent pay rise, adding to the burden of keeping them happy in old age, with the pension bill rising by a fifth or Sh18 billion

The adjustment is in keeping with the tradition of increasing the monthly pension by three per cent every two years in the race to match the rising cost of living. At three per cent, the retirees still trail inflation or the cost of living measure—which stood at 4.3 per cent last year and 9.2 per cent in 2017.

The move is equivalent to an increase of Sh1.67 billion based on the pension bill of Sh86.2 billion for the year to June.

“The retirees should expect a three per cent review. We do it every two years and it is in the budget estimates tabled in Parliament last week,” a source at the Treasury said.

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