By Treezer Michelle Atieno
Kenyan taxpayers bear a significant burden due to the costly retirement packages
provided to former politicians, placing added pressure on public funds. Many ex-
MP, Members of Parliament, and government officials benefit from this system by
simultaneously receiving multiple incomes, which puts additional pressure on public
funds.
Numerous former MPs who have secured other well-paying public service positions
receive salaries, pensions, and allowances concurrently. Prominent figures such as
Eugene Wamalwa, Mwangi Kiunjuri, and Ukur Yattani served as cabinet secretaries
while receiving pensions with their salaries, further straining taxpayers.
Governors, who have previously served as MPs, also benefit from this system. In
addition to their substantial salaries, often exceeding KSh 1 million per month, they
receive pensions.
The Parliamentary Pensions Act stipulates that MPs who have served at least two
terms and are over 45 years old are entitled to pensions. This policy has resulted in
monthly pay-outs amounting to millions. Former MPs who served between 1984
and 2000 earn a minimum of KSh 33,000 per month, with proposals to increase this
amount to KSh 100,000.
The cost to taxpayers is staggering. The Treasury spends millions of shillings on
pensions for approximately 1,000 former MPs. Implementing the proposed increase
to KSh 100,000 would further strain the public pension fund, requiring an additional
KSh 33.5 million monthly. The retroactive application of this policy to 2010 would
significantly increase the fiscal burden.
Former President Uhuru Kenyatta rejected a similar proposal in 2020, citing its
unsustainable financial implications. His concerns shed light on the broader issue of
an expanding public wage bill, which undermines efforts to manage public
spending.
The financial strain caused by these pensions is substantial. The system, which
allows former MPs to receive multiple payments, coupled with proposed increases
in pension rates, clearly favours politicians over taxpayers.
Kenya's retirement packages for politicians indicate a system that requires
immediate reform- a balance between rewarding public service and being fiscally
responsible. As the government grapples with an increasing public wage bill, it
becomes imperative to re-evaluate and restructure these generous pension
schemes, creating a fair and sustainable fiscal policy for the nation.
Examples illustrate this issue. For instance, Kinuthia Mbugua, former Administration
Police Commandant, received KSh 19 million in gratuity upon retirement and
continued to draw a monthly pension while serving as the State House Comptroller.
Such cases highlight how politicians benefit by cycling through different public
service roles.
Legislators have attempted to increase pension benefits for MPs. The 2022
Parliamentary Pensions Bill aimed to raise the minimum pension to KSh 100,000
for MPs who served between 1984 and 2000. However, proposals like these often
face opposition from the National Treasury due to the strain they could place on the
national budget.
Economic experts believe that while politicians deserve compensation for their
service, the current pension system is overly generous compared to other public
service roles. They suggest reforms such as capping pensions, eliminating double-
dipping, and aligning benefits with the nation's economic realities.
Kenya's political pension system represents a significant financial challenge,
highlighting the urgent need for comprehensive reform. Striking a balance between
fair compensation for public service and fiscal responsibility is essential to ensure
the sustainability of public funds and equitable treatment of all public servants. Re-
evaluating pension policies and implementing necessary changes will help alleviate
the financial burden on taxpayers while ensuring fairness and sustainability in the
long run.
