Kenyans could face increased financial burdens as Members of Parliament work to expand their pension benefits through legislation currently under consideration in the House.
The Parliamentary Pensions Amendment Bill, introduced by Kitui Central MP Makali Mulu, aims to provide one-term legislators with extended timeframes to repay pensions already received, while safeguarding the monthly pensions of two-term MPs who lose their seats but later return to Parliament.
During a legislative retreat in Naivasha, lawmakers temporarily set aside their regular duties to examine their welfare benefits and exit arrangements.
A new pension plan is among the key legislative items awaiting consideration once the MPs return to the parliamentary chamber.
The Parliamentary Pensions Amendment Bill, 2023, now undergoing its third reading, seeks to modify the Pensions Act to ensure that lawmakers who have completed two terms and lost in their third attempt can still receive pension benefits upon returning to Parliament, without having to refund previously collected payments.
According to MP Makali Mulu: “If you encounter Kanduyi MP Wafula Wamunyinyi, realize that his current pension is calculated for two terms, despite having served four.”
Under the proposed Pensions Act amendments, Members of Parliament must, at the commencement of a new term, opt to receive either a pension or a gratuity, as stipulated by legal provisions.
The bill put forward by MP Mulu intends to extend the pension buy-back period from three months to 45 months, offering re-elected MPs greater flexibility to rejoin the pension scheme.
Legislators who have served more than one term may choose to receive a gratuity in place of a pension at the conclusion of their current term.
The proposed amendments would also grant pensions or gratuities to MPs who retire on medical grounds, even if they have not yet reached the age of 45.
“If you are under 45 and qualify for a pension but can no longer work due to medical reasons, this bill permits earlier access to your pension,” explained Mulu.
Should the Pensions Act amendments be approved in Parliament, taxpayers may face significantly higher costs to sustain the generous pension arrangements for Members of Parliament.