House demands Sh5m car grant for new MPs not in Rotich’s Budget

The 11th Parliament in session. Parliament has asked Treasury secretary Henry Rotich to include the Sh5 million free car grant for new MPs to join House after August election, arguing that the billions are missing in his budget tabled two weeks ago. PHOTO | FILE

What you need to know:

  • The Parliamentary Service Commission (PSC) wants the Treasury to provide Sh2.1 billion to allow each of the 418-member bicameral parliament to get the car grant after the August 8 poll.
  • The commission reckons that the Sh36 billion set aside by MPs for financial year starting July has left out several entitlements to the lawmakers.
  • They include car grant, severance allowance, gratuity and training of new MPs.

Parliament has asked Treasury secretary Henry Rotich to include the Sh5 million free car grant for new MPs to join House after August election, arguing that the billions are missing in his budget tabled two weeks ago.

The Parliamentary Service Commission (PSC) wants the Treasury to provide Sh2.1 billion to allow each of the 418-member bicameral parliament — MPs and Senators — to get the car grant after the August 8 poll.

The commission, which is the MPs employer, reckons that the Sh36 billion set aside by MPs for financial year starting July has left out several entitlements to the lawmakers.

They include car grant, severance allowance, gratuity and training of new MPs, items that would inflate the budget to Sh45.7 billion should Treasury yield to their demands.

“The Sh9.7 billion (Sh45.7 billion minus Sh36 billion) shall be used to cater for the one-off expenditures in the 12th Parliament,” the PSC says in its submissions to Parliament’s Budget and Appropriations Committee.

The 418-member bicameral parliament has 68 Senators and 350 MPs.

Lawmakers are entitled to Sh20 million mortgage loan, a Sh7 million car loan in addition and a Sh5 million tax-free car grant, underlining the taxpayers funded comfort that has seen the legislators rank among the best paid in Africa.

MPs are also entitled to a mileage allowance, pension and unlimited committee sessions.

Sh1m pay

Though each of the 416 earns a basic monthly salary of slightly above Sh550,500, the allowances push their take-home to more than Sh1 million.

Politicians argue that they deserve the high compensation because constituents expect them to provide charitable support.

Taxpayers pay salaries of personal assistants, office managers, secretaries and assistants as well as allowances for police officers attached to legislators.

There is also Parliamentary Car Loan (Members) Scheme Fund, which allows MPs to borrow at subsidised interest rates for an extra luxury car above the Sh5 million grant.

On the car grant, the PSC wants Sh1.78 billion reserved for MPs in the year starting July and Sh350 million for Senators.

The PSC is yet to table its budget two weeks after Mr Rotich tabled the national budget.

The Judiciary has also presented its estimates for 2017/18. 

Traditionally, the Parliament and Judiciary present their respective budgets to the National Assembly on or before the day the Treasury tables the annual estimates of the national government.

Parliament is still locked in talks with the Treasury and the Salaries and Remuneration Commission to include a Sh2.4 billion in the national budget for the year starting July as “severance allowance” to be paid to MPs the end of their term in August.


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