MPs add hefty salary increase in budget

By ALEX NDEGWA and ALLAN KISIA

Kenya: Parliament has budgeted for higher salaries for MPs that would nearly double the Sh532,000 monthly pay set by the Salaries Commission.

Calculations based on the budget estimates from the Parliamentary Service Commission (PSC) indicate that the total basic and personal allowances for each of the 349 MPs, excluding the Speaker, will total Sh991,000.

This figure drops only marginally if the Speaker’s pay, which is usually higher than that of MPs, is included.

Their 67 colleagues in the Senate will receive a gross monthly pay of Sh1.3 million each minus the Speaker of the upper House, according to the budget estimates tabled in Parliament yesterday.

The budgeted figure excludes taxes, which means the take home will be much lower because the new Constitution provides that even the bulk of MPs’ salaries, including because the new Constitution provides that even the bulk of MPs’ salaries, including allowances, be taxed.

Assuming that the perks will attract a conservative 30 per cent tax, each MP would pocket a monthly pay of at least Sh693,821, while Senators would take home Sh968,624 each.

The proposed budget is exclusive of a raft of other benefits for the MPs like the Sh5 million free cash for the purchase of luxury vehicles that they plan to raise to Sh7 million, claiming the initial figure is not enough to buy the sleek cars they insist is their entitlement.

The SRC led by chairperson Sarah Serem had set the MPs’ pay at a more modest Sh532,000 as part of measures to curb the spiraling Government wage bill. After taxation, the MPs would have received Sh372,000.

This was lower than the Sh851,000 MPs in the now defunct Tenth Parliament were earning.

Projections

The infuriated MPs yesterday formally started the process they hope would culminate in the removal of the SRC commissioners whom they accuse of violating the Constitution for chopping their pay.

The proposed increases in MPs’ pay is contained in estimates of the recurrent and development expenditure for the PSC for the year ending June 30, next year, and projections for 2014/2015-2016.

PSC has prepared a total budget of Sh24.5 billion comprising Sh20.4 billion (recurrent estimates) and Sh4 billion (development estimates). Speaker of the National Assembly Justin Muturi signed the proposed budget.

Under the new Constitution, each of the three arms of Government prepares their own budgets to promote separation of powers.

PSC has been in talks with the Salaries Commission after the newly elected MPs rejected the regulator’s new pay structure for Parliament, saying it was inadequate to sustain their lifestyles.

The financial estimates indicate that the PSC has set aside Sh841.2 million as the total basic salaries for the MPs and the Speaker in the Government’s new financial year starting July 1.

Dividing the figure by the 349 MPs minus the Speaker, and further by 12 months to derive the monthly pay, translates to a basic pay of Sh200,859.

Law violated

An additional Sh3,309,840,000 is set aside as personal allowances paid as part of salary. Using a similar formula, this works out to Sh790,315 in monthly allowances each and a consolidated pay of Sh991,174 per MP.

For the Senators, the budgeted total basic salary for the year is Sh449.51 million, or Sh559,097 each. Personal allowances are Sh663,020,800 translating to Sh824,652 for each of the Senators. The gross monthly pay totals Sh1,383,749.

Earlier in the House, Igembe South MP Mithika Linturi tabled a petition seeking the removal of the Serem-led commission on grounds that the commissioners violated the law and were incompetent.

MPs closed ranks to overwhelmingly support the petition, which will be referred to a House committee to investigate the claims and submit a report to the House. Should the report indict the commissioners and the House approves it, the resolution will be presented to President Uhuru Kenyatta to form a tribunal to investigate the commissioners.

Linturi told MPs he has a charge sheet of 18 counts against the SRC team for violating the Constitution, and another 12 counts for violating other laws. “I will be in a position to prove the charges. I ask the House to find there is need to have all commissioners removed and get a fresh team,” he stated.

Gem MP Jakoyo Midiwo seconded Linturi’s petition terming Serem as a “rogue” who never consults with the right people or Government agencies.

Ulterior motive

“The Parliamentary committee that will look into this matter should do something that has never been done before,” he added.

The Leader of Majority Party, Mr Aden Duale, supported the petition arguing that a commission that violates the law must be dealt with.

“We have no ulterior motive. Any commission that breaks the law should be disbanded,” he added.

He said MPs are ready to go to the media to explain how the SRC violated the law. Duale said the commission has not touched the Judiciary, yet Serem says she is still consulting.

“I also expect the Parliamentary committee to give a fair hearing to the Serem team,” he stated.

“If we find that the team violated the law, then the President has no option but to form a tribunal and the team to step aside.”

Eldas MP Adan Keynan also supported the petition and said Parliament is supposed to play an oversight role.

“All international agreements form part of our Constitution. Atwoli said it is unlawful to take away what an individual is entitled to,” he said adding that Kenyans should understand that they are not asking for a pay hike.

Kitutu Chache North MP Jimmy Angwenyi urged MPs to uphold the Constitution saying Parliament should be independent and play its oversight role.

“The Serem team is incompetent and extreme. We want competent people who can do an evaluation of work and set proper salaries,” he added.