National Assembly fails to overturn Uhuru memo on ex-MPs’ pension

The National Assembly once again failed to overturn President Uhuru Kenyatta’s memorandum on the Parliamentary Pensions (Amendment) Bill, 2019 that rejected an enhancement of former lawmakers’ retirement benefits.

The Bill, which sought to have MPs who served between July 1, 1984 and January 1, 2001 get an enhanced monthly pension of Sh100,000, was passed on August 5.

The President expressed his reservations on the advice of the Salaries and Remuneration Commission (SRC) and refused to sign the bill into law. 

Read: Ex-MPs' hefty pension gets House nod

He argued that the bill overlooked the mandate of the SRC, which includes setting and reviewing pay and benefits for State officers, including lawmakers.

The House Committee on Finance and National Planning had recommended that the President’s reservations be vetoed but MPs could not raise the requisite two-thirds majority or 233 of the 349 lawmakers to actualise the committee’s recommendations.

Misrepresentation of facts

Raising a two-thirds majority is a feat that has yet to be achieved by the House since the promulgation of the Constitution in 2010 but National Assembly Minority Leader John Mbadi, who sponsored the bill, said the House “will live to fight another day”.

 “These former MPs have been discriminated against. We did our best but there was a misrepresentation of facts by the SRC. We shall revisit the matter,” the Suba South MP said.

He accused the Lyn Mengich-led commission of “being economical with the truth”.

Mr Mbadi said the former MPs wrote to the SRC twice on their need to have their pension enhanced but there was no response.

 “Parliament also wrote to the commission at the time of considering this bill but again there was no response,” he said.

 “If there is any bill that is a direct consequence of public participation is this one.”

The bill is a product of the Akiwumi Commission of Inquiry on the welfare of lawmakers that recommended that those who served during the time be given a Sh100,000 monthly pension.

MPs who served between 1963 and 1984 were given Sh1 million each because there was no pension law during their time as lawmakers.

Majority Leader Amos Kimunya said the House acted in good faith when passing the bill.

 “We take the guidance the President has taken the House through. However much we debate, it we will not raise the numbers required,” Mr Kimunya said as he rallied lawmakers to adopt Mr Kenyatta’s memorandum.

Mr Kimunya added that other measures should be taken to improve the situation of the former MPs.

The MPs who served during the time take home between Sh2,000 to Sh8,000 a month while others get nothing.

The committee had dismissed the President’s memo, saying inflation and the high cost of living make it impossible for the former MPs to survive on the money they are getting.

 “The committee having considered the President’s reservations on the bill, recommends that the House agrees with its decision to reject the memorandum,” the team’s report read.

The President said taxpayers would have to pay the former MPs Sh444 million every year.

The number of former MPs has been decreasing rapidly, from more than 500 to less than 100 in the last 11 years.

On July 28, 2015 Speaker Justin Muturi ruled vetoing the President’s reservations on a bill would require a two-thirds or 233 of the 349 MPs voting threshold as provided for in Article 115 (4) of the constitution.

On the other hand, it will require only a simple majority of the MPs in the House to pass the president’s memorandum fully accommodating his reservations.

Since the 2010 constitution was promulgated, the National Assembly is yet to overturn any of the president’s reservations on a Bill passed by the House.

SRC chairperson Lyn Mengich advised the President not to sign the Bill into law arguing that it contravenes Article 230 (4) (a) of the constitution as pension is an employment benefit and therefore falls within its mandate.

Contributory scheme

Pension is a contributory scheme between the MPs and the employer- the PSC- and is governed by the Parliamentary Pensions Act.

An MP who has served two terms from the 9th parliament is entitled to a monthly pension of about Sh127,800 plus a lump sum of Sh7.7 million before tax of 30 percent.

The need to enhance the living pension for the MPs who served at the time is informed by the Akiwumi Tribunal report of November 12, 2009, which recommended the payment of $10,000 in minimum monthly pension to the former MPs.

At the time the tribunal made the recommendations, the exchange rate of the Kenyan shilling to the dollar was Sh80, which translated to about Sh80,000 a month.

In its report of June 2010, the Parliamentary Service Commission (PSC) that is in charge of the welfare of MPs and parliamentary staff not only adopted the Akiwumi report but improved the figure from an estimated Sh80,000 to Sh100,000.

The PSC report which was subsequently laid on the table in parliament was adopted and passed without any amendments.

In the report of 2011, the House budget committee not only approved the recommended living pension but identified and allocated appropriate funding for the same.