Kibaki set to earn more in retirement if House passes Bill

Politics and policy

Parliament in session. President Mwai Kibaki will be earning more in retirement than he did when in office if Parliament endorses two Bills tabled Thursday seeking to increase the pension of designated State officers. Photo/File  Nation Media Group

By EDWIN MUTAI

Posted  Thursday, December 27  2012 at  19:44

President Mwai Kibaki will be earning more in retirement than he did when in office if Parliament endorses two Bills tabled Thursday seeking to increase the pension of designated State officers.

The Presidential Retirement Benefits (Amendment) Bill 2012 proposes that the President be paid a lumpsum take-home of Sh12.6 million for every term served.

The President would also be paid pension at the rate of 80 per cent of his final salary of Sh700,000 meaning he would earn Sh560,000 a month. In addition he would be paid 40 per cent of the current salary as entertainment allowance, some Sh280,000.

Under another Bill — the Retirement Benefits (Deputy President and Designated State Officers) Bill 2012 —National Assembly Speaker Kenneth Marende would take home Sh240,000 monthly pension when he retires. The amount is 80 per cent of his basic pay Sh300,000.

Also to benefit is vice-president Kalonzo Musyoka, Prime Minister Raila Odinga, deputy Prime Ministers Uhuru Kenyatta and Musalia Mudavadi, Chief Justice Willy Mutunga his deputy, Attorney- General Githu Muigai and the Chief of the Kenya Defence Forces Julius Karangi

Finance minister Njeru Githae has published the two Bills containing the retirement packages.

The Bills were fast tracked by reduction of the publication period from 14 to eight days. They were also not referred to the relevant departmental committees to save on time.

The Bill on presidential benefits intends to amend the Presidential Retirement Benefits Act of 2003 in order to take into account the inflation trends in the computation of the benefits payable to a retired president.

The Bill will amend Section 5 of the Act which provides for the pension and other payments that a retired president is entitled to by pegging the monthly amounts payable as housing, fuel, utilities and entertainment allowances to a percentage of the monthly salary paid to the president.

Under the proposed amendment, a retired President would also be entitled to a housing allowance of Sh300,000 a month to cater for both urban and a rural dwelling.

The President will get a suitable office space not exceeding 1,000 square metres with appropriate furniture, furnishings, office machines, equipment and office supplies, to be supplied and maintained by the government. In addition, the President would get two new cars of his choice, replaceable every three years, each car having an engine capacity not exceeding 3,000cc. He will also get two personal assistants, four secretaries, four messengers, four drivers and bodyguards, among other benefits.

emutai@ke.nationmedia.com