Former MPs to receive Sh1m payment

By Joseph Murimi

The Government has commenced payment of ex-gratia to former MPs.

Some 250 former MPs who served between 1963 to 1983 are to receive Sh1 million each meaning the taxpayer will part with Sh250 million for the retired legislators.

The amount is to be paid in two instalments of Sh500,000 each spread over two financial years starting this year.

But the former MPs have protested at the decision by the Government to tax the send off package.

Like the current MPs, the former legislators are angered by the taxation decision and are lobbying for an exemption

Grouped under the Former Parliamentarians Association of Kenya, the former MPs said they are too old and too poor to pay taxes.

Exemption from tax

They have written to Treasury Permanent Secretary Joseph Kinyua asking him to exempt them.

They also plan to send a delegation to the Head of Civil Service, Mr Francis Muthaura to plead their case against the taxation.

Former Mandera East MP Adan Abdilahi who is the treasurer of Fpak said yesterday that even if it was Government policy that everybody pays tax, it should, in their case, waive it on humanitarian grounds.

Abdilahi said that former MPs who served in the ninth Parliament were paid a send-off package of Sh1.5 million and it was not taxed.

Abdilahi said former MPs want their pension reviewed so that they are paid a monthly stipend of US$ 1,000 (Sh78,000) in line with the Commonwealth standards.

The secretary to the group and former Nyeri Town MP Wanyiri Kihoro says in the letter to the PS that the Sh1 million should not attract tax.

"I would kindly request that you consider exempting the payment from taxation, which I understand could amount to Sh 300,000,’’ says the letter.

Clerk to the National Assembly Patrick Gichohi said they received instructions from the Cabinet asking them to pay former MPs who served between 1963-1983.

Documents seen by The Standard provided that the ex-gratia payment to each member be paid irrespective of the period served and that where former MP is deceased, payment be made to his or her spouse or if both are deceased, it should go to their dependants.

Members legibility

After he received the communication, Gichohi wrote a letter to Muthaura seeking clarification on the eligibility of members currently receiving a pension.

"In order to clarify the matter beyond doubt, we have taken the view that we should seek your interpretation on the decision of the Cabinet,’’ says the letter.

He said in the meantime they would proceed with payment of ex-gratia to those who served between 1963 and 1983.

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