This archive report was first published on 11 July 2019.
Kenyan taxpayers will soon be footing an additional Sh450 million annually for the pensions of former MPs who retired between 1984 and 2001, if a proposed Bill is enacted.
The Bill, sponsored by Minority Leader John Mbadi, aims to amend the Parliamentary Pensions Act, Cap 196, to increase the pension payout for former MPs who served for one term.
Under the proposed amendment, 375 MPs will each receive a minimum of Sh100,000 per month for life, a significant increase from the current pension of at least Sh125,000 for MPs who served for two terms or more.
According to the Parliamentary Pensions Act, only MPs who served for two terms or more are currently entitled to a monthly pension of at least Sh125,000 for the rest of their lives.
However, Mbadi argues that MPs who have served for one term should also be included in the pension scheme, citing the need to take care of their welfare, as some are languishing in poverty.
“This is in light of the fact that despite serving the nation, some Members of Parliament are languishing in poverty and there is need to take care of their welfare,” Mbadi says in the memorandum of object and reason to the Bill.
It's worth noting that the number of beneficiaries has since reduced from 570 to about 375, as reported by Business Daily.
Mr Mbadi is quoted as saying, “I had recommended backdating of this payments in my initial draft Bill, but after consulting with Budget and Appropriations Committee, we decided that it would be a burden on the taxpayer. So, the payment will begin at the point the Bill is assented to and becomes law,”
