Economy

State freezes Moi, Kibaki pension rise

kibaki

Retired president Mwai Kibaki. FILE PHOTO | NMG

Summary

  • Retired presidents Mwai Kibaki's and Daniel arap Moi's pension increases have been frozen for the next three years amid a government push to curb the ballooning wage and retirement benefits bills.
  • The two have been allocated Sh74 million for pension and other personal benefits for the three years to June 2022, Budget estimates tabled on Tuesday show.
  • They are expected to earn the same amount in the current year ending June.

Retired presidents Mwai Kibaki's and Daniel arap Moi's pension increases have been frozen for the next three years amid a government push to curb the ballooning wage and retirement benefits bills.

The two have been allocated Sh74 million for pension and other personal benefits for the three years to June 2022, Budget estimates tabled on Tuesday show.

They are expected to earn the same amount in the current year ending June.

Retirement benefits of former presidents have come under sharp criticism, especially in the past couple of years when allocations increased by large margins even as the government insisted it had put in place austerity measures to deal with a burgeoning wage bill.

If awarded equally their package for the current year assures each a monthly payout of Sh3 million — an amount that is more than twice President Uhuru Kenyatta’s official salary of Sh1.2 million.

It also puts the benefits of the two at par with the salary and benefits of top chief executives of financial and telecom companies listed at the Nairobi Securities Exchange.

The High Court in 2015 stopped the government from paying allowances worth millions of shillings to the two after finding that they were an unnecessary burden to the taxpayers.

The Attorney-General has since appealed the decision, allowing the two to continue enjoying the high pay.

Sections of the law that the court nullified entitled Mr Kibaki and his predecessor, Mr Moi, to a Sh379,500 house allowance per month, a fuel allowance (Sh247,500), entertainment (Sh247,500) and utilities (Sh379,500).

The law also entitles them to two personal assistants, four secretaries, four messengers, four drivers and bodyguards. Taxpayers also cater for workers in Mr Kibaki’s Nairobi office that was bought at Sh250 million three years ago, and Mr Moi’s office at Kabarnet Gardens, off Ngong Road.

The package has also come under heavy criticism on grounds that the retired presidents left office as rich men with property worth billions of shillings and vast business interests.

Mr Kibaki stepped down from the presidency in 2013 after serving two five-year terms while Mr Moi retired in 2002 having been in power for 24 years.