MPs delete Sh2b send-off clause from Bill

By Peter Opiyo

Nairobi, Kenya: Members of Parliament on Tuesday deleted a clause that gave them a send-off package of Sh9.3 million each before passing the Finance Bill.

The MPs agreed with President Kibaki’s memorandum and deleted the clause that had awarded them the send-off package.

President Kibaki in his memorandum termed the proposed ammendment as unconstitutional as it usurp the powers of the Salaries and Remuneration Commission which is charged with the review of salaries of state officers.

The Bill, which outlines various taxation measures by the government and legalizes the collection of taxes, was passed by Parliament in October by the President declined to append his signature owing to ammendments that sought to increase the MPs’ winding-up allowance to Sh9.3 million each at the end of their term.

 “The proposal to review the remuneration and benefits of MPs as suggested should only emanate from the Salaries and Remuneration Commission as provided in the Constitution and Salaries and Remuneration Act, 2011, and not unilaterally by MPs from the privileged floor of the House,” said Kibaki in the memo.

He therefore recommended that the proposed ammendment be deleted from the Bill.  Overturning the president’s memorandum requires the MPs to garner at least 65 per cent (145 MPs of the 222).

Wajir West MP, Adan Keynan, who is also the Vice Chairman of the Parliamentary Service Commission, moved the ammendment in October. The ammendment sought to repeal the second schedule to the National Assembly Remuneration Act to increase the severance allowance of the legislators.

The ammendment wants the severance allowance calculated at 31 per cent of the MPs’ basic pay of Sh200,000 per month from the time they were sworn in on January 15, 2008 up to August 26, 2010.

Thereafter, they would benefit from 31 per cent of their gross pay of Sh851,000 as severance pay from August 27, 2010 until January 15, 2013 when their term expires.

This would mean each MP would pocket Sh9.3 million at the end of their term, costing tax payer a total of Sh2 billion.