Economy

Kibaki rejects MPs' Sh2bn send-off package

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President Kibaki has objected to the amendment on the grounds that it was first unconstitutional and secondly untenable in the prevailing economic circumstances in the country. Photo/FILE

President Mwai Kibaki on Tuesday declined to assent to the Finance Amendment Bill that was passed by Parliament, denying MPs hefty Sh2.1 billion severance pay that they had secretly awarded themselves last Thursday.

The President said the amendment that Members of Parliament made last week that would result in an additional charge to the consolidated fund was unconstitutional and untenable.

“The President objected to the amendment on the grounds that it was first unconstitutional and secondly untenable in the prevailing economic circumstances in the country,” said a statement from State House.

READ: Why Kibaki may not sign MPs’ new pay perks into law

Last Thursday, Parliamentary Service Commission (PSC) vice chairman Adan Keynan introduced amendments to the National Assembly Remuneration Act to peg MPs severance allowance at the rate of 31 per cent of the gross remuneration payable to the legislators each month.

The amendment would have seen the 222 MPs, Speaker Kenneth Marende and Attorney-General Githu Muigai -who are ex-officio members- take home Sh9.3 million each when their term ends on January 15, 2013.

Keynan’s amendment, dated September 26, 2012 was approved by Deputy Speaker Farah Maalim on October 2, 2012 but was kept secret until last Thursday evening when the Minister of Finance Njeru Githae approved it before its introduction to the House.

All amendments to a Bill are ordinarily published or listed in the Order Paper and moved by the sponsor at the Committee of the Whole House stage indicating reasons behind the proposed changes to the law. Keynan’s amendment however did not follow this process.

Temporary Deputy Speaker Ekwee Ethuro, who was chairing the committee stage said “the amendment has been circulated” and proceeded to put the matter to vote without any debate after some Members of Parliament questioned the amendment.

The President said that coming shortly after the increment of salaries for teachers and doctors, the severance pay for parliamentarians would lead to an unsustainable wage bill at a time when the country requires massive resources to implement the new Constitution and meet other competing demands in the economy.