Mbadi opposes Sh2.6b goodwill payout to ex-councilors

National Treasury CS John Mbadi addressing the media outside Treasury Building in Nairobi on February 13, 2025. [Boniface Okendo, Standard]

Treasury Cabinet Secretary John Mbadi has stated he will not proceed with his predecessors' plan to pay Sh2.6 billion ex-gratia to former councilors.

Speaking before the Senate on Wednesday, March 5, Mbadi explained that the agreement was unlawful.

"Yes, my predecessors made a commitment that they did not make. I cannot pay unless it is backed by the law,"said Mbadi.

In 2023, former Treasury CS Njuguna Ndungu had announced the start of the payment process, citing a memorandum drawn up for Cabinet approval.

However, the plan did not come to fruition after Ndungu's dismissal.

The ex-councilors began advocating for the payment in 2013, initially requesting Sh1.5 million each, but the amount was later reduced to Sh200,000 after a recommendation by a task force deliberating on the issue.

Mbadi has also emphasised that despite the recommendations, there is no constitutional provision supporting the payment.

"There was a taskforce, and a recommendation was made. However, I am yet to see any provision which authorizes a taskforce formed to approve payment to former councilors. The recommendations should be anchored by law, to allow me to make payment to those councilors," he added.

Adding that he will work with other ministries to ensure those who qualify are enrolled in the Inua Jamii program to receive support, if they haven't already.