Huge pay day for Members of Parliament ahead in plot to send Salaries and Remuneration Commission Chair Sarah Serem home

By Martin Mutua

NAIROBI, KENYA: Members of the National Assembly could soon be laughing all the way to the bank with a basic salary of Sh851,000 a month like their predecessors in the last Parliament.

They intend to debate and pass a Motion next week declaring four Kenya Gazette notices published in February “unconstitutional” and “null and void”. This will reverse changes limiting MPs’ basic salary to Sh532,500 and allow the use of the contentious National Assembly Remuneration Act in setting their pay.

Sources at the National Assembly say the MPs’ first salary is likely to be processed immediately the Motion gets House approval.

However, a challenge is expected in court from civil society groups, the Salaries and Remuneration Commission (SRC) or the Commission on the Implementation of the Constitution (CIC).

The pay package for MPs also comes with a vehicle purchase grant of Sh3.3 million, which lawmakers want to raise to Sh7 million, and a sitting allowance of Sh5,000 in House and committee meetings.

Subject to tax

This means MPs will take home Sh80,000 a month for attending the four sittings each week.

Members of parliamentary committees that sit on Mondays, Tuesdays, Thursdays, and Fridays when the House is not sitting will earn an extra Sh5,000 each time they meet. The committees are not allowed to sit when the House is in session unless expressly authorised by the Speaker.

Unlike in the last Parliament, when allowances were earned tax free, the new perks will be subject to taxation.

They could start being earned from Wednesday next week after a Motion by a committee that has already compiled a report seeking to reverse a gazette notice by the SRC chaired by Mrs Sarah Serem.

The Motion was tabled on Thursday by the chairman of the Delegated Legislation Committee William Cheptumo but was not debated since it had not been allocated time by the House Business Committee. MPs threw out an adjournment Motion that would have seen them go on an 11-day recess to allow them to be available for this matter.

A fortnight ago, the Parliamentary Service Commission tabled budget estimates for the current financial year that included the anticipated new perks. Although MPs were sworn-in two months ago, they have declined to take their proposed salaries of Sh532,500, which will translate to Sh372,000 after tax.

Calculations based on the budget estimates from the PSC indicate the total basic and personal allowances for each of the 349 MPs, excluding the Speaker, will total Sh991,000 each month.

This figure drops only marginally if the Speaker’s pay, which is usually higher than that of MPs, is included.

Their 67 colleagues in the Senate will earn Sh1.3 million gross, minus the Speaker of the Upper House, according to the estimates.

The budgeted figure excludes taxes, which means the take home will be lower. Assuming the perks attract a conservative 30 per cent tax, each MP would pocket at least Sh693,821, while Senators would take home Sh968,624.

The SRC had set the MPs’ pay at a modest Sh532,500 as part of measures to curb the spiralling Government wage bill.

PSC has prepared a budget of Sh24.5 billion comprising Sh20.4 billion (recurrent estimates) and Sh4 billion (development estimates).

Speaker of the National Assembly Justin Muturi signed the proposed budget. Under the new Constitution, each of the three arms of Government prepares their own budgets to promote separation of powers.

Financial year

PSC has been in talks with the Salaries Commission after the MPs rejected the new pay structure, saying it was inadequate to sustain their lifestyles.

The financial estimates indicate the PSC has set aside Sh841.2 million for MPs salaries and the Speaker in the Government’s new financial year starting July 1.

Dividing the figure by the 349 MPs minus the Speaker, and further by 12 months to derive the monthly pay, translates to a basic pay of Sh200,859. An additional Sh3,309,840,000 is set aside as personal allowances.

Using a similar formula, this works out to Sh790,315 in monthly allowances each and a consolidated pay of Sh991,174 per MP.

For Senators, the budgeted basic salary for the year is Sh449.51 million, or Sh559,097 each. Personal allowances are Sh663,020,800 translating to Sh824,652 for each of the Senators. The gross monthly pay totals Sh1,383,749.

Igembe South MP Mithika Linturi has also tabled a petition seeking the removal of the Serem-led commission on grounds the commissioners violated the law and were incompetent. MPs closed ranks to overwhelmingly support the petition, referred to a departmental committee to investigate the claims and submit a report to the House.

Should the report indict the commissioners and the House approves it, the resolution will be presented to President Uhuru Kenyatta to form a tribunal to investigate the commissioners. Linturi told MPs he has a charge sheet of 18 counts against the SRC team for violating the Constitution, and another 12 counts for violating other laws.

Gem MP Jakoyo Midiwo seconded Linturi’s petition terming Serem a “rogue” who never consults with the right people or Government agencies. “The parliamentary committee will look into this matter and should do something that has never been done before,” he added.

Majority Party Leader Aden Duale supported the petition arguing a commission that violates the law must be dealt with.