Category Archives: retirement

No more Golden handshakes

Chris Rock used to joke that Black people should get their pensions at age 30 because they have a lower life expectancy than Whites and never live to retire at age 55.

The new Retirement Benefits Act was the talk of the town last week as it had some stunning revelations. It was revealed that retirees would not get most of their pension until they turn 55 – they can only access what they contributed, which is in many cases only a fraction of the employer’s contribution.

It was shocking that this decision was made as there are about to be a number of retrenchment packages e.g. at Kenya Railways, Telkom and Kenya Ports Authority. Previously retrenched employees walked away with some nice payments packages – golden handshakes – and invested in restaurants, buildings, matatus or other businesses (and of course, others drank/wasted the money away)

Get off the CEO seat gently

Life at the top is a luxurious affair, which is why when you are let go, you have to be dragged away screaming.

Prof Mwangi Kimenyi, the former Kenya Institute of Public Policy, Research and Analysis (Kippra) executive director and Dr Shem Ochuodho, former Kenya Pipeline MD, are both suing the Government for wrongful dismissal.

Parastatal reform must start at the top, and Kenya needs to have clear guidelines as to what a CEO is entitled to as Amb. Mutahura spelt out this week. Whether you hire someone from the golf course, a multi-national, the UN, or the US, there must be clear terms and conditions, otherwise, people will pull a Gachara and dictate their salaries. The Government can expect a third suit from Dr Evans Mukolwe, who was just replaced at the KWS.