Kibaki to get lower allowances in retirement than Moi

President Mwai Kibaki attends a leaders meeting in Othaya town on February 9. Kibaki will receive a lump sum of Sh31.2 million for the two year terms he served. File 

By Victor Juma

Posted  Thursday, February 14  2013 at  20:57

President Mwai Kibaki will receive slightly lower allowances on retirement compared to former president Daniel arap Moi, the Treasury has said.

The new Presidential Retirement Act 2013 has changed the allowance payable to retired presidents from fixed sums to percentages of their salaries.

For instance, President Kibaki will earn Sh195,000 monthly in fuel allowances or 15 per cent of his current Sh1.3 million salary compared to Moi who earns Sh200,000.

The President will also get a house allowance of Sh299,000 equivalent to 23 per cent of his salary while Moi gets a fixed sum of Sh300,000.

In total, President Kibaki’s will come down by Sh12,000 on the new percentage-based compensation.

The new Act, however, introduces pension for children of former presidents at a rate of between 25 and 50 per cent of the head of State’s salary for minors (under age of 18).

“The new compensation was introduced to avoid the frequent amendments to the previous fixed allowances,” said Finance minister Njeru Githae.

He added that the new compensation scheme will give greater flexibility to the government in allocating additional services to former presidents, including security and home service.

The previous Act, for instance, set a maximum of six security guards to a retired president’s home but the new one gives the government discretion to raise or  lower that number based on prevailing security threats.

The State will, therefore, determine from time to time the number of escort team a former president should have.

The lump sum payable to a former head of State, however, remains at one year’s salary per each term served. This means that President Kibaki will receive a lump sum of Sh31.2 million for the two year terms he served.

First Lady Lucy Kibaki will also get a diplomatic passport as the new Act grants the spouse of a retired president the privilege.

Highlights of new Act

• The Act has changed the allowance payable to retired presidents from fixed sums to percentages of salaries.
• Lump sum to a former head of state remains at one year’s salary per term served.
• The new law grants the spouse of a retired president a diplomatic passport.
• The State to determine from time to time the number of bodyguards for a former president. Previous Act set a maximum of six bodyguards.