For years, MPs who made successful political comebacks after spending a decade out of Parliament found that part of their service counted for little when it came to retirement benefits.
That could soon change after the National Assembly approved a Bill that seeks to reward legislators returning after long breaks by recognising their earlier years in office through a new pension calculation formula.
The changes are contained in the Parliamentary Pensions (Amendment) Bill, 2023, sponsored by Kitui Central MP Makali Mulu. The Bill now heads to President William Ruto for assent before it can become law.
If approved, the law will benefit MPs who served two terms, stayed out of Parliament for at least 10 years and were later re-elected. Their earlier years in office will attract a 2.5 per cent annual adjustment when their pension is calculated, although the total service considered will not exceed four parliamentary terms.
The adopted amendments state:
"Where an MP is re-elected to Parliament and any pension previously payable to that member ceased by reason of such re-election, the pension payable to that member upon retirement in respect of the new period of service shall be subject to an adjustment at the rate of 2.5 per cent per annum for each year of the member’s prior reckonable service, provided that the total cumulative period shall not exceed four terms of Parliament."
Mulu told the House the proposal seeks to address what lawmakers consider an unfair gap in the current law, where MPs returning after a long political absence only receive pension based on their latest period in office, leaving out their earlier service.
"If a member serves two terms and is eligible for a pension, then goes out and returns after 10 years, like Wafula Wamunyinyi of Kanduyi, for instance, they realise that upon returning, they will only receive pension for the last two terms," Mulu said.
"To acknowledge the first two terms before returning to Parliament, we consulted an actuarial firm, which devised a formula that considers these members’ four terms. This is to accommodate the earlier service. This does not affect many members, but it would be unfair not to factor in the service of four terms and only consider two."
The proposal was agreed upon during Parliament's fourth Naivasha retreat in February after lawmakers settled on a 2.5 per cent adjustment factor for MPs who serve three or four terms that are not necessarily consecutive.
At present, MPs who complete four uninterrupted terms receive a monthly pension of about Sh255,000. Under the proposed law, legislators who leave Parliament, return after more than a decade and serve beyond two terms would receive about Sh217,000 every month.
Supporters of the Bill argued that the changes will ensure lawmakers are compensated based on the full length of their parliamentary service instead of only their most recent terms.
The Bill also introduces new provisions allowing MPs aged 45 years and below to receive pension benefits if they are unable to continue serving because of a medical condition.
The amendments provide:
"Where an MP is unable to perform the functions of the office by virtue of a medical condition, and the condition is certified by a medical board appointed by the Director-General, the committee shall grant pension or gratuity notwithstanding that the member may not have attained the age of 45."
Mulu said the amendment is intended to protect members who become medically unfit before reaching the age required to qualify for pension.
The legislation further removes the option that allowed second-term MPs to choose between receiving gratuity and joining the pension scheme after advice from the Salaries and Remuneration Commission. Instead, every MP elected for a second term will automatically become pensionable.
"We are deleting the option of gratuity or pension. Initially, we had proposed that one could choose, but now Parliament will not allow second-timers to choose gratuity," Mulu said.
"When you come as a second-timer, you become pensionable. This is important, especially when one retires."
According to Mulu, the Bill seeks to remove discriminatory provisions contained in the Parliamentary Pensions Act Cap 96, which was enacted in 1983 and amended in 2002 before the 2010 Constitution came into force.
He maintained that the proposal is not meant to benefit him personally despite serving three consecutive terms.
"I am not doing this for selfish gain just because I have served for three consecutive terms. I am going for the Kitui governor seat, so I won’t be a beneficiary," Mulu said.