National treasury releases Sh2bn for Members of Parliament car grants

By Jacob Ng’etich

Legislators will be laughing all the way to the bank tomorrow after the Government completed the transfer of over Sh2 billion free cash for cars.

The grant, alongside their salaries, are gains made by legislators — both members of the National Assembly and the Senate — from a pay deal struck with the Salaries and Remuneration Commission (SRC) after a protracted war early this year.

Last week, Members of the National Assembly declined to take their recess, that was to start on Friday, until the car grant, July salaries and mileage claims were channeled to their personal accounts.

“MPs said they required the money to go to their constituencies,” said a source at Parliament Buildings.

Yesterday, National Treasury Cabinet Secretary Henry Rotich told The Standard On Sunday that his ministry had transferred the remaining over Sh1 billion for the final 206 members.

“For the MPs, we paid them on Friday. Any payment has a process — from our ministry the papers go to the Controller of Budget, who passes them on to the Central Bank of Kenya, which will transfer the money to the relevant office,” said Rotich. The Cabinet Secretary explained the late payment, saying the Parliamentary Service Commission (PSC) had delayed in making the requisition for the amount, and only made it on Thursday.

“We have given them their salaries and over Sh1 billion car grant for the remaining 206 MPs. We had earlier taken care of some legislators and the Senators,” said Rotich.

Old payroll

The money was paid alongside salaries of civil servants and teachers, after the Government reverted to the old payroll of 44 ministries.

At the height of the MPs’ salary demand in June, the SRC settled on a car loan arrangement as a way of saving the taxpayers money, at a period when the Government was struggling with a crippling wage bill.

But they later agreed to a car grant with the PSC.

Aside from the car grant, the MPs are also entitled to an optional car loan facility of upto Sh7 million repayable at an interest rate of three per cent per annum for a maximum of five years.

The legislators also receive more than Sh40 million every month to fuel their cars while discharging their duties, including visiting their constituents.

The Legislature is composed of 418 members — made up of 67 Senators and 349 members of the National Assembly and the two Speakers for both Houses.

The Sh5 million grant is an increase over what lawmakers in the 10th Parliament got — Sh3.3 million — for their cars.

Under the deal brokered by Deputy President William Ruto, the MPs take home slightly over Sh1 million in gross pay a month, inclusive of allowances.

Other benefits won by MPs in the deal include subsidised mortgage, tax-free pension and unlimited committee sittings that allow them to make huge amounts of money.

Committee sittings

While the MPs are entitled to a taxable Sh532,500 salary, with an annual increment of eight per cent or Sh44,000, the actual amount at the end of the month is higher from earnings in committee sessions given that every MP and Senator is a member of a committee.

Initially, the SRC had capped the committee meetings at 16 per month, which would see lawmakers earn a maximum sitting allowance of Sh80,000.

Yesterday, Speaker of the National Assembly Justin Muturi confirmed to The Standard On Sunday that all the MPs had received their car grants after the Treasury transferred the remaining amount.

“All the MPs, including the Senators, have received their share after the transfer on Friday. As chairman of the Parliamentary Service Commission, I am the one responsible for their payments and I can confirm that,” said Muturi.

Parliament last week published a Bill seeking to amend the Constitution to remove Members of the National Assembly from the list of State officers, a move that will allow the lawmakers to adjust their salaries and allowances.

The Constitution of Kenya (Amendment) Bill 2013 proposes to amend Article 260 of the Constitution to free three groups from the auspices of the Salaries and Remuneration Commission (SRC), which has a mandate to set and regularly review the remuneration and benefits of all State officers.

Also to benefit from this amendment are members of the county assemblies, judges and magistrates.

The driving force of the Bill, according to its proponents, is so as to uphold the doctrine of separation of powers between Executive.

Whereas judges and magistrates will fall under the Judicial Service Commission, it is not yet clear where the Members of the County Assembly will fall.