Marende: Outcry over Kenya MPs' pay premature

House Speaker Kenneth Marende has said the public outcry over Kenya MPs plans to increase their salaries is premature July 7, 2010. Photo/FILE

National Assembly Speaker Kenneth Marende has said the public outcry over Kenya MPs plans to increase their salaries is premature.

Fielding questions from journalists after meeting visiting US congressmen at Parliament Buildings, Mr Marende said the process of the proposed increment was incomplete.

“It is premature to talk about MPs having had their salaries or allowances reviewed or increased,” Mr Marende said.

The Speaker said MPs had merely adopted a report from the Parliamentary Service Commission recommending a review of their pay as per the Akiwumi Report.

The Mr Justice (rtd) Akilano Akiwumi led commission was formed following pressure from the public for MPs salaries to be taxed like other Kenyans.

Mr Marende said Parliament had only attempted to invoke the provisions of the law on the review of remuneration of MPs salary.

“This emanates from an outcry the Kenyan public generated calling on MPs to pay taxes as a national and patriotic duty. Parliament chose to put in place a committee of experts to make recommendations to it on how best to do it,” the Speaker said.

He said the Akiwumi report was forwarded to Parliamentary Service Commission which tabled it in the House.

“This does not complete the process. Parliament merely adopted what was brought before it in way of motion.”

Presidential assent

He said the current law has to be amended or new one passed by Parliament for the process of implementing the suggested salaries to move forward.

If changes are passed by Parliament, he added and the Bill found to be appropriate it will be assented to by the President.

The chairman of the US House Democracy Partnership David Price, who is leading a 24-member delegation to the country declined to comment on the pay issue, which if effected would make Kenyan MPs the best paid in the world.

Finance minister Uhuru Kenyatta is expected to table before the House three Bills to legalise the recommendations to enable them take effect starting July 1, this year.

According to the recommendations, an ordinary MP will take home Sh1.09 million in basic salary and allowances, up from the current Sh851,000.

This includes Sh300,000 basic salary, Sh130,000 constituency allowance, Sh100,000 entertainment allowance, Sh100,000 extraneous allowance, Sh150,000 house allowance, Sh366,000 transport allowance and Sh60,000 car maintenance allowance. The balance of Sh65,000 represents the five per cent yearly increment to cushion members from the rise in the cost of living.

If approved, the MPs will now pay Sh228,000 in tax leaving them with the balance of Sh863,000, which most members argue is not an increment.

The MPs’ decision ignored some of the key recommendations of a salary commission, such as that a wage increase cannot apply to the Parliament passing it but the next one.

Mock Kenyans

The move was met with outrage by the civil society, NGOs and Kenyans who said the MPs vote was driven by greed and selfish interests.

Central Organisation of Trade Unions acting secretary general George Muchai said it was “retrogressive and likely to bring distress among Kenyans” while the civil servants’ union described it as “outrageous and a mockery of Kenyans”.

Other MPs broke ranks with their colleagues and condemned the pay hike, saying it could not have come at a worse time when civil servants, teachers and the police were also demanding a salary review.

Prime Minister Raila Odinga, Cooperatives minister Joe Nyaga and Mr Kenyatta were among leaders who spoke up against the MPs move to award themselves a huge pay raise.

Mr Kenyatta said that Treasury did not have money to effect the increase, saying it was not factored in the Budget.

The Finance minister said if allowed, the pay hike would trigger demands from other sectors to have their remuneration improved.

“The public will also recall that I presented the Budget Estimates for the Financial Year 2010/11 on 10th June 2010. These estimates do not include any additional allocations to the National Assembly for salaries and other benefits,” Mr Kenyatta said in a statement.

He said the Budget had exhausted all available resources meaning that the new salaries could only be financed either through additional borrowing or imposition of higher taxes, both of which he said would have far reaching adverse economic and social consequences.

“The actions taken by Hon Members are not supportive of these noble objectives because they will trigger demands for salary increment by other sectors. Consequently, these will lead to a wage spiral, hence creating inflation and weakening our competitiveness,” Mr Kenyatta warned.