MPs revive attempt to raise pension for former membersWednesday March 29 2023
Parliament has revived a Bill rejected by former President Uhuru Kenyatta to increase pension for members who retired between 1984 and 2001.
The Bill republished by Kimilili MP Didmus Barasa shows it will cost taxpayers an extra Sh180.9 million every year to keep former MPs who retired between July 1, 1984, and January 1, 2001, comfortable.
The Budget and Appropriations Committee (BAC) heard that should the Parliamentary Pensions (Amendment) Bill 2022 sail through, the former legislators will earn a monthly pension of Sh100,000 up from the current Sh3,952.
Read: Bill to give MPs Sh100,000 lifetime pay returns
Data submitted to the BAC shows that as of 2018, the lowest pension payment was Sh3,952, while the average pension for MPs who earned less than the recommended amount was Sh33,000 on average.
“To implement the proposal, it is estimated that it will cost the government an additional expenditure of approximately Sh180.9 million in the first year of implementation made up of approximately Sh15.08 million monthly,” said Mr Barasa.
Currently, there are 160 former MPs entitled to the proposed pension having retired between January 1984 and January 2001.
Mr Barasa told the BAC chaired by Kiharu MP Ndindi Nyoro that there are about 130 widows and widowers.
He said each former MP is entitled to an average amount of Sh33,000 per month as a pension benefit while each widow or widower receives an average amount of Sh16,500 per month as an entitlement.
The committee heard that the current cost of 160 former MPs and 130 widows and widowers is Sh7.43 million monthly or Sh89.1 million annually.
Read: MPs wrest control of their pensions from Treasury
“Increasing the pension will put pressure on the current wage bill, which is a big problem for the economy given the present government’s goal of cutting recurrent expenses to reduce the rising debt,” an analysis by parliamentary fiscal analysts read.