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{
"id": 1569816,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1569816/?format=api",
"text_counter": 28,
"type": "speech",
"speaker_name": "Hon. John Mbadi",
"speaker_title": "The Cabinet Secretary for National Treasury and Economic Planning",
"speaker": null,
"content": " Thank you very much, Mr. Speaker, Sir. In the interest of time, I will try my level best to paraphrase and summarise my response without losing content. I rise to answer Question No.034 raised by Sen. Enoch Wambua, regarding pension disbursements to former MPs who served between 1979 and 1992. The current status is as follows- (a) Former MPs who served between 1979 and 1992 and were eligible for pension benefits, have been receiving payments in line with the Parliamentary Pension Act, Cap 196, as revised in 2012. This revision significantly enhanced their pension entitlements by adjusting the actuarial factor from 1/600th to 1/300th. Effectively, this doubled their pension benefits. As a result, these former MPs received a revised pension lumpsum and an adjusted monthly pension following the implementation of Section 8.2 of the Cap 196, revised in 2012. However, there are also further efforts to review the Pension which have been guided by the recommendations of the Akiwumi Tribunal, which was appointed by the Parliamentary Service Commission (PSC) to review the terms and conditions of service for Members and staff of Parliament. To implement these recommendations, several legislative attempts have been made to amend the Act to accommodate the Akiwumi recommendations which recommended at least a living pension of US$1,000 per month. There was the Parliamentary Pension Amendment of 2019, which lapsed in January 2019. Then there was another Parliamentary Pension (Amendment) Bill 2019, sponsored by Hon. John Mbadi, who was an MP then and this was rejected on 24th September, 2020, following Presidential Reservations. It was passed by Parliament, but rejected by the President. Then, there is the Parliamentary Pension (Amendment) Bill by Hon. John Waluke. This is the Bill of 2023 to implement Kshs100,000 minimum pension. However, it faced opposition first from the National Treasury, which raised concerns about fiscal sustainability and, of course, the Salaries Remuneration Commission (SRC), which also deemed the proposal unconstitutional. The PSC recommended further consultations with stakeholders. Those three reasons made the Bill not to see the light of day. In light of these concerns and Presidential reservations, the Parliamentary Departmental Committee on Finance and National Planning recommended the rejection of the Bill in its entirety, which was done. On the review and adjustments to ensure fair and sustainable Pension as has been asked by the Hon. Member, I wish to report that the National Treasury has undertaken several measures to ensure Pension remain fair, sustainable and responsive to the rising cost of living. These include implementation of the Pension Increase Act, CAP 190, which since 1st July, 2005, Pension have been reviewed every two years with an increment rate of three per cent to help pensioners cope with inflation and rising living costs. The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."
}