• Sat. Oct 31st, 2020

MPs okay with Ksh100,000 as monthly pension.

Byflorence wairimu

Aug 5, 2020

National Assembly approved the Parliamentary Pensions bill of 2019 which will see 375 lawmakers who retired between1984-2001 to receive Ksh 100,000 as monthly pension.

The bill now awaits Presidential Assent to become a law will update in the mother Act stipulating that only MPs who served for two terms are entitled to a monthly pension of at least Sh125000 for their lives. The Minority Coalition leader John Mbadi and his whip Junet Mohammed asked Uhuru Kenyatta to assent to the bill which they say is timely. The bill which was sponsored by the Minority Coalition is for implementing recommendations in line with Akilano Akiwumi Task Force t backdate to 2010 July. According to statistics done, if you work with an average of Sh80,000 increment per member without factoring in taxation because this must be taxed, the country will incur Sh144 million in the first year which is too much for our budget.2020-21 budget provides Sh126.5billion for retirees. Junet says that former lawmakers are paid as low as Sh2000 which cannot cater for their needs.

Aden Duale expressed his fears that enactment of amendment might open the doors of civil service to demand pension terms to be reviewed. He added and said that if MPs can increase their pension to 100000, what about the Permanent Secretaries, Cabinet Ministers and other civil servants.

There have concerns about the legality of the amendment especially since members have a clear limited tenure. International Centre for Policy and Conflict Executive Director Ndung’u Wainaina said the critical question would be if the MPs were contributing to a pension scheme.

‘Were those MPs members of a pension scheme then? Were they contributing? You cannot introduce a pension scheme to a person who was not in the first place a member of any scheme,’ he said.

With recommendation to backdate the payments to July 2010, PBO said it would cost about Sh1.76billion in the first year of implementing the Bill. The annual pension payment would amount to approximately Sh180.9million assuming that there are 160 ex MPs and 130 widows or widowers,The Parliamentary Budget Office said.

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