Uhuru slashes pension for Kibaki & Moi to increase package for Raila & Kalonzo

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As the government pushes to curb the ballooning wage and retirement benefits bills, the packages for retired presidents Mwai Kibaki’s and Daniel arap Moi’s pension increases have been frozen for the next three years denting a huge blow to the former leaders.

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 last week show.

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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.

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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.

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On the other hand, the Treasury has set aside Sh1.5 billion to cater for the retirement benefits of former Prime Minister Raila Odinga and retired Vice-Presidents, including Kalonzo Musyoka, underlining the burden of keeping former State officials comfortable in retirement.

Budget documents tabled in Parliament show an allocation of Sh1.5 billion as gratuity for retired presidents under an expenditure line that is being introduced for the first time.

The allocation comes weeks after Mr Odinga and Mr Kalonzo made a formal application for the lavish pension offered retired vice presidents.

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Mr Odinga and Mr Musyoka will be entitled to a lump sum pay of Sh8.64 million, Sh720,000 in monthly lifelong pension and Sh108,000 in fuel allowance every month besides other lavish benefits like fully furnished offices as well as 17 workers including chefs, accountants, secretaries and personal assistants at taxpayers’ expense.

The two leaders currently earn a monthly pension of nearly Sh200,000 for the multiple terms they served as MPs for Lang’ata and Mwingi North constituencies respectively.

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The MPs’ pension will be stopped once the two start accessing the lavish benefits.

President Kenyatta had in 2015 declined to assent to a bill that would have given Mr Musyoka and Mr Odinga the hefty perks, citing their participation in active politics but softened his stance following the handshake.

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