Kenyans to dig deeper into pockets as MPs push to expand their pension benefits

Kenyans may have to dig deeper into their pockets to finance Members of Parliament pensions if a bill before the House becomes law.

The Parliamentary Pensions Amendment Bill, sponsored by Kitui Central MP Makali Mulu, seeks to give one-term lawmakers more time to repay pensions they had already collected, while protecting two-term MPs who lose their seats from losing their monthly pension if they make a comeback.

The MPs who were holed up in Naivasha for a legislative retreat paused their busy agenda to review their welfare and exit package.

Among the key items or piece of legislations on their in-tray is a new pension plan, poised to take effect once they return to the chamber.

The Parliamentary Pensions Amendment Bill, 2023, now at third reading, aims to amend the Pensions Act to ensure that lawmakers who have served two terms and lost in their third can still enjoy their pension if they make a comeback to Parliament, without the burden of repaying previously collected benefits.

MP Makali Mulu said: “Incase you see now (Kanduyi MP Wafula) Wamunyinyi, the pension he earns today is for two terms but he has served four terms.”

Under the Pensions Act amendment, a Member of Parliament, at the start of a new term, must choose to receive either a pension or a gratuity, in line with the provisions of the law.

In a bold move, MP Mulu’s proposed bill aims to stretch the pension buy-back period from just three months to 45 months, giving re-elected MPs more breathing room to rejoin the scheme.

An MP who has served more than one term may choose to receive a gratuity instead of a pension at the end of the current term they are serving.

Under the proposed amendment, an MP who retires on medical grounds shall be granted a pension or gratuity, even if they have not yet reached the age of 45.

“If you are below 45 and qualify for pension and on medical grounds you can’t work anymore, this bill allows you to access your pension earlier,” said Mulu.

Should the Pensions Act amendments pass in Parliament, taxpayers could be looking at a heftier bill to fund MPs’ luxury pensions.