MPs’ perks set to be taxed

MPs will start paying taxes on their allowances if proposals by a commission reviewing the lawmakers’ pay is implemented.

The report by the tribunal, chaired by retired judge Akilano Akiwumi, was handed over to National Assembly Speaker Kenneth Marende on Thursday at a brief ceremony.

The commission’s findings were not made public, but those who have seen the report say one of the team’s recommendations is that MPs should pay taxes on their hefty allowances.

Commonwealth

Mr Justice Akiwumi said the report had been compiled in line with other Commonwealth institutions.

The commission had also taken into account the current situation in the country and the Parliamentary Service Commission (PSC), he added.

This appeared to be in line with views presented at tribunal hearings that salaries of MPs be reduced and that they should pay taxes.

The report is also said to set the salaries of the Vice-President and the Prime Minister, with the latter having an edge.

The Speaker acknowledged that the report touched on a matter of public interest.

He said it covered all aspects that came up during the commission’s hearings.

“The report deals with the redefinition of the remuneration package of MPs and Parliament staff,” he told the media on Thursday.

However, the report will be released to the public after it has been studied by Mr Marende and tabled in Parliament.

The PSC vice-chairman Walter Nyambati is then expected to move the motion in Parliament, where the report will undergo the necessary legislative process before it is adopted and implemented.

The tribunal was appointed by the PSC in January to also review the terms of service of the President, the Vice-President, the PM and other Parliament staff.

During the hearings, the Head of Civil Service Francis Muthaura asked the tribunal not to raise the current pay, but also have the salaries taxed.

Hefty package

Mr Muthaura also proposed a hefty pay package and retirement benefits for the First Lady and the spouses of the PM and Vice-President.On his part, Kenya Revenue Authority boss Michael Waweru also called for the taxation of MPs’ emoluments.

The current MPs are opposed to having their salaries taxed, with some asking for a pay raise first.Gem MP Jakoyo Midiwo and his Kangundo counterpart, Mr Johnstone Muthama, earlier asked for a minimum pay of Sh1.5 million before taxation.

They said that increasing the salaries was the only way to make lawmakers support the tribunal’s recommendations.

But, by law, any changes to the pay will have to wait until the 11th Parliament in 2013 to take effect.

MPs earn a minimum of Sh850,000 per month.