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Economy

One-term MPs’ pay drops to Sh5m in pension option

MPs who served for more than a term will get at least Sh7 million and a monthly pension of Sh118,000. file PHOTO | NMG
MPs who served for more than a term will get at least Sh7 million and a monthly pension of Sh118,000. file PHOTO | NMG 

About 196 one-term MPs who lost their seats in the August 8 elections have taken a cut on their pension after Parliament opted to refund them their contribution of Sh5.9 million.

The Salaries and Remuneration Commission (SRC) had asked MPs to choose either a Sh6.7 million end-of-term pay or a refund of their contributions.

The Treasury had set aside Sh2.8 billion in the budget as gratuity cash, guaranteeing each MP Sh6.7 million at the end of term.

The SRC ruled that the lawmakers must decide whether they want gratuity or pension, prompting the Parliamentary Service Commission (PSC) to opt for the smaller refund of their retirement contribution.

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