President Uhuru Kenyatta has rejected the Bill seeking to award former MPs Sh100,000 in monthly pension for life, saving taxpayers billions of shillings and safeguarding the independence of the Salaries and Remuneration Commission (SRC).
The National Assembly had in August approved the Parliamentary Pensions (Amendment) Bill, 2019 which sought to increase the minimum monthly pension for lawmakers who served between July 1, 1984 and January 1, 2001.
The more than 375 former MPs would have seen their monthly pension rise to above Sh100,000 from the current Sh33,000. Mr Kenyatta, however, has declined to sign the Bill into law, arguing that it would add an unwarranted Sh444million annual tax burden on taxpayers.
It would require a two-thirds majority to overturn the President’s position.
The proposed law sought to update the Parliamentary Pensions Act, which stipulates that only MPs who had served for two terms or more are entitled to a monthly pension of at least Sh125,000 for the rest of their lives. MPs who lose after serving one term are refunded the equivalent of three times their monthly pension deductions plus 15 per cent interest for every year served. But the law did not cover lawmakers who retired before 2002.