Lawmakers are pushing fresh changes to parliamentary pension rules that would allow Members of Parliament below 45 years who are battling serious illness to access their retirement benefits earlier than currently permitted.
The proposed reforms are contained in the Pensions (Amendment) Bill, 2025, which seeks to revise long-standing provisions that restrict younger legislators from drawing their pension and also adjust how benefits are handled for MPs who lose elections and later return to the House.
The Bill, sponsored by Kitui Central MP Makali Mulu, is aimed at addressing what he described as discriminatory elements within the Parliamentary Pensions Act (Cap 196), a law first enacted in 1983 and last amended in 2002 before the 2010 Constitution. As it stands, MPs who have served two terms only qualify to receive their pension after attaining the age of 45.
“If one is bedridden, for instance, and needs the money, then he should be allowed to access his pension. This is one of the proposals that we agreed to during the meeting, and I will move the amendment when we resume,” Mulu said l.
Another key proposal in the Bill focuses on MPs who complete one term, lose their seat, and later regain it through an election. At present, they must repurchase their earlier pension contributions within three months of returning to Parliament to qualify for benefits. The amendment seeks to extend this period to 45 months while retaining the 15 per cent interest rate.
Mulu said the review is also intended to address concerns affecting members who have served two terms, lost an election, and later secured a third term. Under the existing framework, such lawmakers would still only receive pension based on two terms if they fail to win again.
“We have agreed that such members who have served for three terms, though not continuous, should earn a bit higher than those who have served for two consecutive terms,” Mulu said.
During deliberations held behind closed doors at the fourth Naivasha retreat, legislators also agreed that a 2.5 per cent factor should be used when calculating pensions for MPs who have served more than three or four terms, even when those terms were not consecutive.
Currently, an MP who completes four back-to-back terms qualifies for roughly Sh255,000 in pension. Under the proposed changes, those who return after a break and go on to serve more than two terms would receive about Sh217,000.
Although there had been suggestions to move the management of the pension scheme to the Parliamentary Service Commission, lawmakers resolved that administration should remain under the National Treasury.
Members further agreed that the proposed amendments would likely take effect for legislators elected to the 14th Parliament after the 2027 General Election. The changes are not expected to apply to past service in order to avoid legal complications.
“I am not doing this for selfish gains because I have served for three consecutive terms, and I am going for the governor’s seat, so I won’t be a beneficiary,” Mulu said.
At the same retreat, National Assembly Speaker Moses Wetang’ula cautioned that leaving Parliament before completing more than one term can expose lawmakers, especially first-timers, to serious social and economic challenges.
