Mr Yatani’s move effectively activates commencement of the PSSS Act 2012 Act that was assented to on May 9, 2012 but was yet to be effected.
“Every member shall contribute to the PSSS at the rate of 7.5 percent, which is deducted from his or her monthly pensionable salary while the government makes a contribution for each member at the rate of at least 15 percent of the member’s monthly pensionable salary,” explained the Treasury.
Past bids to slice a portion of the take-home pay for public officers has been vigorously contested in the past leading to delayed implementation of PSSS.
A 2009 actuarial study commissioned by the government found that there was a contingent pension liability of Sh499 billion at the time.
The liability nearly doubled to Sh990 billion in 2014.
