Kibaki retirement perks rise past Uhuru, Ruto pay

Former President Mwai Kibaki’s annual allowances will starting July outstrip the combined annual salaries earned by President Uhuru Kenyatta and Deputy President William Ruto, turning the spotlight on the growing public wage bill burden on the taxpayer.

Mr Kibaki’s personal and medical allowances will rise by Sh3.96 million to Sh58.82 million in the fiscal year beginning July compared to Mr Kenyatta and Mr Ruto’s combined pay of Sh51.28 million, according to the Treasury’s budget estimates.

Mr Kibaki assented to the Presidential Retirement Benefits (Amendment) Bill of 2012 that entitled him to the generous retirement perks — effectively awarding himself millions of shillings worth of benefits amid protests from civil society groups.

The hefty allowances do not include a pension package Mr Kibaki is entitled to as is his predecessor Daniel arap Moi. The two retired presidents will share a Sh64 million pension package, a 64 per cent increment in the coming financial year — adding to the burden on the taxpayer.

The National Taxpayers Association (NTA), a lobby group, yesterday criticised the hefty increments, saying the decision amounted to increasing the taxpayers’ burden without producing any corresponding socio-economic benefits.

“It does not make sense for taxpayers to make his (Mr Kibaki’s) life more comfortable while they have nothing to look forward to in return,” said Martin Napisa, the association’s national coordinator.

READ: Uhuru sets the tone for public wage bill cut

Mr Kibaki’s perks for the current financial year ending June 30 stand at Sh54.86 million.

Mr Napisa reckons that much as former heads of state are entitled to a good life after retirement, the figures have become “ridiculously” high, a huge chunk of which could be channelled towards upgrading Kenya’s rickety schools and hospitals.

“It is nothing less of a rip-off,” he said, pointing to the billions of shillings spent annually on elected and nominated leaders’ salaries and allowances.

Mr Kibaki’s retirement benefits have come under sharp criticism, especially during public discourse on the bloated public wage bill that amounts to Sh500 billion per year even as millions of citizens live in abject poverty and the country’s army of the unemployed continues to swell.

The Kenya National Commission on Human Rights (KNCHR) in January asked the High Court to declare the amended presidential retirement benefits law null and avoid, citing a lack of input from the Salaries and Remuneration Commission (SRC). The case is pending before court.

The SRC is the agency with the constitutional mandate to fix salaries, allowances and retirement benefits of all State officers.
The Sarah Serem-led commission was sidelined during amendment of the benefits law, denying it the chance to make an input in the decision.

The Commission for Implementation of the Constitution (CIC), whose input was also by-passed, faulted the then 10th Parliament for hurriedly passing the law just before the end of its term and described it as illegal.

The Treasury’s estimates for 2015/16 year show that Mr Kenyatta and his deputy’s combined salaries and allowances increased by Sh4.29 million despite the duo’s announcement last year that they had taken a 20 per cent pay cut to contain the bloated wage bill.

The two top government executives were allocated a total Sh46.99 million in pay and perks in the current fiscal year ending next month. Mr Kenyatta and Mr Ruto will cumulatively earn Sh36.63 million in salaries in the next financial year, up from Sh33.52 million in the current year, fitting perfectly within the SRC’s recommendation.

The President is entitled to a salary range of between Sh1.23 million and Sh1.65 million monthly, meaning Mr Kenyatta’s allowable maximum annual pay is Sh19.8 million, according to the SRC.

Mr Ruto is entitled to a monthly pay of between Sh1.05 million and Sh1.4 million — effectively capping his annual pay at Sh16.8 million. The Treasury’s allocation of Sh36.6 million to the duo equals the recommended maximum pay.

Mr Kenyatta and Mr Ruto’s personal allowances will rise to Sh14.65 million in the next fiscal year from Sh13.46 million.

The amended presidential retirement benefits law gave Mr Kibaki a lump sum of Sh25.2 million, a monthly pension of Sh560,000, entertainment allowance of Sh280,000, fuel allowance of Sh195,000 and a house allowance of Sh299,000. The former president also enjoys an annual in-patient medical cover of up to Sh21.2 million.

Mr Napisa said Mr Kibaki could immortalise his legacy, beyond his presidency, if he funnels part of his retirement proceeds towards an initiative that would improve the country’s socio-economic wellbeing as other iconic former presidents have done.

“He could set up a foundation to address a particular challenge like unemployment or a leadership institute to groom future leaders,” said Mr Napisa.

Mr Kibaki’s upkeep in retirement will set the taxpayer back Sh82.86 million in the financial year ending June while Mr Moi’s total pay stands at Sh66.85 million.

In seeking the court’s intervention on the benefits law, the KNCHR argued that during the reading and passage of the law, Parliament did not involve the SRC as the constitution requires.

The commission said that Mr Kibaki should have refused to sign the law to adhere to good governance practices and constitutionalism.

“In enforcing the law, Mr Kibaki and Parliament went against the spirit of the Constitution, which intended to stop MPs and other State officers from arbitrarily increasing their salaries without minding the status of the economy,” the commission argued.

Mr Kibaki is credited with multiple sector reforms during his term in power and for creating conditions that set Kenya on the growth path after years of misrule and stagnation under his predecessor.

Besides introducing free primary education and subsidised secondary education, the career politician steered the country towards infrastructure development and left behind an economic blueprint – the Vison 2030.

The amended benefits law also entitled the former President to an office space not exceeding 1,000 square metres, with appropriate furniture, furnishings, office machines, equipment and office supplies all supplied and maintained by taxpayers.

Retired presidents are also entitled to two new cars replaceable every three years, two personal assistants, four secretaries, four messengers, four drivers and bodyguards.

Mr Moi opted to use his Kabarnet Gardens home near Kibera Estate in Nairobi as his official office while Mr Kibaki has an office block at Nyari Estate in Nairobi that was bought in 2013 at Sh250 million.

Attorney-General Githu Muigai, however, opposed the KNCHR’s petition, arguing that any law passed by Parliament is assumed to be constitutional and that Mr Kibaki did nothing wrong in signing it into law.

His office asked the court to dismiss the suit on grounds that declaring the law null and void would be interfering with the legislative duties of Parliament.