Marende gives MPs deadline to address memo on gratuity

Parliamentarians return for the final session of the Tenth Parliament on November 20, 2012 with National Assembly Speaker Kenneth Marende directing the House to prioritise debate on the Finance Bill which among other things provides a Sh2.2 billion gratuity for MPs. Photo/PHOEBE OKALL

What you need to know:

  • Speaker Kenneth Marende directed the House Business Committee to give priority to the memorandum, which seeks to delete clause 28 of the Bill which granted each of the 224 MPs a Sh9.6 million gratuity.
  • Mr Marende said the House must deal with the matter within 21 days.
  • President Kibaki said he could not sign the Bill on October 12 this year because the clause usurped the powers of the Salaries and Remuneration Commission.

MPs have until December 6 to respond to President Kibaki’s memorandum on the Finance Bill that denied them Sh2.2 billion in winding-up allowances.

Speaker Kenneth Marende directed the House Business Committee to give priority to the memorandum, which seeks to delete clause 28 of the Bill which granted each of the 224 MPs a Sh9.6 million gratuity.

Mr Marende said the House must deal with the matter within 21 days.

President Kibaki said he could not sign the Bill on October 12 this year because the clause usurped the powers of the Salaries and Remuneration Commission (SRC).

The commission has the mandate to set the salaries of all State officers, including legislators.

“The proposal to review the remuneration and benefits of MPs as suggested should only emanate from the Commission and not unilaterally from Members of Parliament from the privileged floor of the House,” President Kibaki said.

MPs who have vowed to defy the President’s memo must raise a two thirds majority (148 Members) to retain the increased winding up package.

MPs sneaked an amendment to the Second Schedule of the National Assembly Remuneration Act to peg their winding allowance at nearly a third of their monthly pay of Sh851,000.

The controversial clause states that a severance allowance be paid to each MP at the rate of 31 per cent of the gross taxable income payable each month, including the salary and allowances for constituency, nominated members, ex-officio member’s, house allowance, extraneous, transport, entertainment and vehicle fixed cost.

The clause proposed by Wajir West MP Adan Keynan during the Committee Stage has stalled the Bill which seeks to empower the Treasury to collect taxes proposed in the 2012/13 Budget.

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