Ruto signs new law granting Senators access to parliamentary pension scheme in major retirement benefits shake-up
President William Ruto has signed into law a landmark amendment that will, for the first time, allow Senators to benefit from Kenya’s Parliamentary Pension Scheme, ending a long-standing gap in retirement benefits created after the introduction of the bicameral Parliament under the 2010 Constitution.
The Parliamentary Pensions (Amendment) Bill, 2023, was assented to by the President at State House, Nairobi, on Monday, July 7, in what the government described as a move to modernise the country’s legislative and financial governance framework.
The new legislation amends the Parliamentary Pensions Act of 1983, a law that was enacted decades before Kenya adopted the 2010 Constitution, which created the Senate alongside the National Assembly.
As a result, the previous pension framework primarily catered for Members of the National Assembly, leaving Senators outside the main parliamentary pension structure despite serving as members of Parliament.
Announcing the signing of the Bill, President Ruto said the reforms bring the law into line with the Constitution while extending pension benefits to lawmakers from both Houses of Parliament.
“Signed into law the Parliamentary Pensions (Amendment) Bill, 2023, bringing in reforms that align the parliamentary pension framework with the Constitution and extend benefits to both Members of the National Assembly and the Senate,” the President said.
He added:
“The legislation updates the Parliamentary Pensions Act of 1983, which became outdated after the promulgation of the 2010 Constitution established a bicameral Parliament.”
The amendment means Senators will now become eligible for retirement benefits under the Parliamentary Pension Scheme, placing them on the same legal footing as Members of the National Assembly.
Beyond expanding pension eligibility, the law also introduces several administrative and legal changes aimed at aligning the legislation with the Constitution.
Among the reforms is an updated definition of a child for pension purposes. The amendment raises the qualifying age from 16 to 18 years, bringing the law into conformity with the Constitution.
The Act also restructures the Parliamentary Pensions Management Committee and the Appeals Committee by including representation from both the Senate and the National Assembly, reflecting Kenya’s bicameral parliamentary system.
Meanwhile, lawmakers who serve for less than five years will continue receiving gratuity payments rather than a monthly pension, preserving provisions that already existed under the previous law.
The amendment follows years of debate over pension entitlements for Senators, who have argued that the retirement framework failed to adequately reflect the constitutional status of the Senate following its re-establishment under the 2010 Constitution.
Under the previous legal framework, Senators were required to serve at least two terms and attain the age of 45 before qualifying for a monthly pension.
Those who completed two terms but left office before turning 45 could not immediately access their pension, instead waiting until they reached the qualifying age.
Senators who served only one term were not entitled to a monthly pension and could only receive a refund of their pension contributions together with accrued interest.
The latest amendment is expected to resolve those disparities by formally integrating Senators into the Parliamentary Pension Scheme, bringing Kenya’s pension law in line with the constitutional structure established more than a decade ago.
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