According to the revised package by the 10th Parliament before it closed shop on Monday, like former President Moi, Kibaki too, will, in addition, have a retinue of civil servants around him courtesy of the taxpayer.
Kibaki too, will, in addition, have a retinue of civil servants around him courtesy of the taxpayer.
President Kibaki assented to the Bill setting out the package whose formula of entitlement had been revised on Monday night as the term of 10th Parliament ended according to the Constitution.
As it is, the package spells out how the taxpayer would meet the cost of any retired President the country would have at any moment.
For now, Kenya only has Moi, who is set to be joined in retirement by Kibaki once Kenyans pick their Fourth President either in the March 4 national exercise or in a run-off in April if the winner of the first round either fails to win in 25 per cent of votes cast in at least half of the 47 counties, or tops but fails to get more than 50 per cent of the votes cast nationally.
And upon the misfortune of death of a retired President, his or her spouse would be entitled to 50 per cent of his pension. A retired President would now have his children entitled to a monthly pension in case he dies. In case of one child, then 25 per cent of the pension (Sh140,000 every month for the case of Kibaki), would go to the child.
Initial package
In cases where a retired Head of State has more than one child, then 50 per cent of the pension would be shared equally among them. Children to benefit under this are those under 18, and those below 24 years but are still engaged in a course of full time education.
But unlike his predecessor, Kibaki would take a cut in retirement benefits of about Sh5.62 million every year, after MPs amended the Presidential Retirement BenefitsAct.
Kibaki would now be entitled to Sh13.1 million every year in a raft of benefits for the rest of his life, instead of the initial package of Sh18.72 million that Moi has been enjoying.
The reduction would however apply to both and future retired presidents unless the law is amended further by the 11th Parliament or subsequent ones. Besides the monthly perks, Kibaki would pocket Sh16.8 million lump sum pay when he retires after his successor assumes office, equivalent to his annual basic salary for each term served.
The lump sum payment on retirement is calculated as a sum equal to one year’s salary for each term served as President. Kibaki is on his second and final term.
Kibaki earns a basic salary of Sh700,000 and has served for two terms. It means hewill earn Sh8.4 million for each term served.
However the initial Presidential Retirement Benefits (Amendment) Bill had proposed to extend to one and a half years the period on which the perks are calculated.
Other allowances
This would have meant the president would have pocketed an additional Sh8.4 million, raising his send off package to Sh25.2 million.
However, Parliament voted to deny him the additional pay by retaining the figure as worked out based on one year’s salary.
But since the Act details cuts for a raft of other allowances — perhaps in the understanding the one-off pay would have increased by Sh8.4 million — the president’s total retirement package has reduced.
The changes saw the formula for working out allowances like entertainment, housing and fuel changed from a fixed sum to a percentage of the monthly salary currently paid to the serving President. But although it has resulted in the immediate slashing of the perks, in future should the salary of a President go up, it will result in higher allowances.
On retirement, Kibaki will be entitled to a Sh560,000 monthly pension, calculated at 80 per cent of the office holder’s monthly salary. This translates to Sh6.72 million a year.
The new formulae for calculating allowances will see the retired Presidents’ housing allowance reduced from a fixed Sh300,000 to Sh161,000 and entertainment cut from Sh200,000 to Sh105,000. Kibaki and Moi and other Presidents who would retire thereafter are entitled to an entertainment allowance calculated at 15 per cent of their salary. For the case of the current President’s salary of Sh700,000, this translates to Sh105,000 per month (or Sh1.26 million per year).
Also in the package is housing allowance calculated at 23 per cent of the monthly basic salary of the office holder. This translates to Sh161,000 per month (Sh1.93 million a year), for the case of Kibaki.
Retirees from the office would also be entitled to fuel allowance calculated at 15 per cent of their salary. This means Kibaki would get fuel allowance of Sh105,000 every month (Sh1.26 million a year).
Coming with the package is also the electricity, water and telephone facilities allowance calculated at 23 per cent of the monthly salary of the office holder, translating to Sh161,000 every month for the case of Kibaki.
In a year Kibaki would draw Sh1.93 million every year from the taxpayer to cater for fuel allowance.
Engine capacity
The changes in the law would see a retired President and a spouse entitled to a diplomatic passport. Initially it was only the retired President who was accorded the status.
A retired President would also be entitled to a fleet of four vehicles replaceable every three years. He would have two new cars of his choice of a capacity not exceeding 3,000cc and two four-wheel drive vehicles of an engine capacity of at least 3,000cc.
Also coming with the package is an international travel allowance of up to four trips a year, not exceeding two weeks each, and access to the VIP lounge at all airports within Kenya.
Though the retirement presidents would contend with a reduction, they would be given additional subsidiary staff. The number of housekeepers has now been doubled from two to four. The same applies to gardeners, cooks and laundry persons. The number of house cleaners however, remains at four.
Additional benefits to a retired President are two personal assistants, four secretaries, four messengers and four drivers. He would be entitled to a suitableoffice space of not exceeding 1,000 square metres with appropriate furniture, furnishings, office machines, equipment and office supplies provided by the government.
Unlike the previous case, a retired President shall have unspecified number of security guards around him. Those guarding his rural and urban residences would also be unspecified but the number would be determined by the Cabinet Secretary in charge of security in consultation with the retired President.
Initially, the former President was entitled to a maximum of six security guards around him and another six guarding his homes.
The taxpayer would also pay office maintenance and vehicle maintenance expenses.
President Kibaki however, declined to sign another Bill that could have seen Deputy Presidents, Prime Minister and his two deputies, Speakers of the two Houses and their deputies and other designated State officers entitled to retirement packages.
This is after MPs mischievously sneaked in an amendment entitling themselves to Sh9.3 million each as gratuity payment. Kibaki has asked Attorney General Githu Muigai to have a relook at the Bill.
