MPs’ perks to rise by over Sh1bn in next financial year

Politics and policy

A session at the National Assembly. MPs are set to benefit from higher perks from the next financial year. Photo/FILE 

By EDWIN MUTAI, emutai@ke.nationmedia.com

In Summary

• The perks paid to the MPs will increase to Sh4.12 billion in the next fiscal year ending June 2015, up from the current Sh3.19 billion.
• Increment part of deal with Ruto last year to pave the way for their basic pay cut.
• Though each of the 416 Members of the National Assembly and Senate earn a basic monthly salary of Sh532,500, allowances push their monthly take- home to more than Sh1 million.

Lawmakers’ allowances are set to increase by more than Sh1 billion in the next financial year, highlighting their position as among the best paid legislators in Africa.

The perks paid to the MPs, mainly in the form of sitting allowances, will increase to Sh4.12 billion in the next fiscal year ending June 2015, up from the current Sh3.19 billion, according Budget estimates presented to the House last week.

The rising allowances are the product of a deal reached last year with Deputy President William Ruto that cut the MPs basic pay, but only in exchange for a tax-free car grant, mileage allowances, pensions and unlimited committee sessions.

The Salaries and Remuneration Commission (SRC) had earlier restricted committee meetings to a maximum of four per week, but the MPs can now hold as many sessions as they deem necessary. 

Though each of the 416 Members of the National Assembly and Senate earn a basic monthly salary of Sh532,500, allowances push their monthly take- home to more than Sh1 million.

READ: MPs win Sh1m monthly pay in backdoor deal

But allowances for the 349 MPs will jump by the largest margin at 31.1 per cent compared to that of senators, which will rise by 27 per cent to Sh806.7 million. 

The lawmakers have argued that they deserve higher salaries because their constituents expect them to provide charitable support.

Many Kenyans view MPs as symbols of a greedy political culture, seeking public office as an opportunity for personal gain at the expense of a country struggling with an unemployment rate that stands at more than 40 per cent.

Restricting committee meetings to a maximum of four per week meant MPs would have earned a maximum sitting allowance of Sh80,000 per month.

MPs earn an additional income by holding as many committee sessions as they deem necessary. 

The lawmakers were also granted a top up of Sh135,255 per month for their contributory pension calculated at 31 per cent of their basic salary that will not be taxed.

The arrangement also gave MPs a Sh5 million grant to buy luxury cars – which is 50 per cent higher than the 10th Parliament’s Sh3.3 million.

The deal gave MPs an annual increment of eight per cent or Sh44,000, meaning that the lawmakers will be taking home a basic pay of Sh710,000 per month by the time the House ends its term in 2017. 

This will see the allocation for their basic pay increase to Sh2.2 billion in 2017 from the current Sh1.6 billion, according to the Budget estimates.