Treasury wants Raila, Kalonzo retirement pay to be slashed

Former prime minister Raila Odinga (left) and former vice president Kalonzo Musyoka at a past event. PHOTO | FILE 

By EDWIN MUTAI

In Summary

• The National Treasury wants Parliament to amend the Retirement Benefits (Deputy President and Designated) State Officers Bill to remove payments to persons who have held the office of the vice president since Independence.
• The Treasury wants Mr Odinga and Mr Musyoka paid through a transitional law and their retirement pay be reduced because they have received old age dues by virtue of being former MPs.

Former prime minister Raila Odinga and vice president Kalonzo Musyoka may lose out on hefty retirement packages after the Treasury said the two positions are non-existent in the Constitution.

Treasury secretary Henry Rotich has written to the Budget and Appropriations Committee seeking its intervention in amending the Retirement Benefits (Deputy President and Designated) State Officers Bill to remove payments to persons who have held the office of the vice president since Independence.

He wants Mr Odinga and Mr Musyoka paid through a transitional law and their retirement pay be reduced because they have received old age dues by virtue of being former MPs.

The Treasury said the intention of the Bill appears to be to pay all such retired persons since Independence, which would be unsustainable in view of large number of retired vice presidents Kenya has had in that period.

“Further, such persons have been adequately provided for as members of Parliament,” Rotich said.

He proposed that the benefit of former VP and PM be provided under a transitional clause in the Bill as the positions do not exist in the current Constitution.

“In computing the benefits due to a person entitled to benefits under this section, the benefits already received by that person under any other law or policy shall be set off against the benefits due under this Act,” the Treasury proposal read.

EARLIER: Raila, Kalonzo retirement perks Bill debate put off amid deadlock

Speaker of the National Assembly Justin Muturi directed the Budget committee chaired by Mbeere South MP Mutava Musyimi to consider the Treasury proposals in order to have the Bill passed on Thursday afternoon.

The Bill sponsored by Orange Democratic Movement (ODM) chairman John Mbadi (Suba) seeks to make provisions for benefits which are to be provided to holders of office of the Deputy President and designated state offices upon retirement.

“Similarly, the Bill makes provision for benefits to be paid to persons who have retired as Prime Minister and Vice-President,” the Bill states in its memorandum of objects and reasons.

The Bill proposed to confer on Raila and Kalonzo lifetime retirement benefits that include a monthly pension equal to 80 per cent of their last monthly salary while in office.

They would also enjoy lump sum payment on retirement, calculated as a sum equal to one-half years salary paid for each term served.