Kenya MPs finally win Sh6.5 billion in severance pay

NAIROBI, KENYA: Members of Parliament have allocated themselves an additional Sh6.5 billion in the national budget that will be unveiled next year, which is likely as compensation for the reduced term.

A budget of the Parliamentary Service Commission – which employs MPs was tabled on Wednesday indicating the huge extra allocation which is however not explained.

Legislators have firmly pushed for an award of a severance pay to cover the eight-month reduction of the usual five-year term that should have ended in March 2018.

Prior estimates had placed the cumulative amount demanded by the MPs at Sh3.7 billion, implying that the payout may actually be higher.
The Constitution-prescribed election date of August 8 will be preceded by the dissolution of the current Parliament where opinion polls have indicated more than half would not be re-elected.
National Treasury Cabinet Secretary Henry Rotich will unveil an earlier-than usual budget next Thursday which includes the enhanced package.
New estimates for the Parliamentary Service Commission tabled indicate that the total allocation has shot to a record Sh23.4 billion. Inspite of the jump, the development budget used to acquire new property for the PSC reduced significantly, from Sh4.5 billion to Sh1 billion.
Despite the huge anticipated payout, President Uhuru Kenyatta has already protested at the current pay which places an MP's monthly salary at about Sh1.1 million.
Mr Kenyatta told the legislators in his address to the nation that he had received a report of the Salaries and Remuneration Commission that proposes huge pay cuts for elected officers.

"This report recommends, amongst other measures, a rationalization of the salaries and allowances paid to senior state officers, public servants, elected officials from MCA all the way to the President," Mr Kenyatta said.
He added that the proposals, when implemented, will result in a reduction in salaries and allowances for those elected in August this year.
"As your President, and as a Kenyan, I fully support the recommendations of the SRC and I call upon all of us to adopt these recommendations."

However after Treasury and the Salaries and Remunerations Commission opposed a plan to pay the lawmakers "severance allowance" amounting to Sh2.4 billion in the current year's mini budget, it seems the legislators decided to sneak it into the next budget which will be read next week.

MPs had dropped the demand in the mini-budget and agreed to submit a budget of Sh40.2 billion, Sh5 billion less than what they initially wanted.