Councillors demand Sh3bn in gratuity pay

Councillors are demanding more than Sh3 billion in gratuity pay as they exit office at the end of their terms.

The Association of Local Government Authorities of Kenya (Algak) chairman, Tarayia Kores, on Saturday said that they had forwarded the proposal to line Minister Fred Gumo.

“We have made our statement before the Minister and are waiting for a response on the matter. We want to be considered for the pay just like our Members of Parliament,” Mr Kores said.

Under this proposal, each councillor is expected to take home Sh1 million at the expiry of their terms when the country goes to the General Election.

There are 3,300 councillors in different councils in the country, meaning the government will be required to pay Sh3.3 billion to the leaders who have been phased out by the Constitution.

Under the Constitution, the councils, which are meant to regulate, license and inspect and provide essential services at the grassroots, will be phased out, although individual counties will have the power to decentralise further.

The Constitution creates two levels of government -- national and county -- although it envisages the possibility of further decentralisation.

Councillors are paid between Sh50,000 and Sh100,000 per month depending on the ability of their councils to generate income.

Local Government Permanent Secretary Karega Mutahi last evening noted that the matter was passed on to Mr Gumo. Already a send-off package totalling Sh3.7 million has been worked out.

Amendments to the Finance Bill increased the pay of the Deputy Speaker of Parliament and members of the chairmen’s panel by Sh2.4 million to be paid as Parliamentary Responsibility Allowance (PRA) and backdated to January 1, 2006.

The Parliamentary Service Commissioners will also get an additional Sh1.2 million per year as PRA backdated to January 1, 2006. Following the increases, MPs are also eligible for life-long pensions and other retirement benefits.

The amount proposed as payment to outgoing MPs is a huge increment from the Sh1.5 million paid out to each member of the last Parliament.

The package MPs handed themselves covers all 222 members and will cost taxpayers Sh825 million.

Deputy Speaker Farah Maalim will get Sh2.4 million per year in parliamentary responsibility allowance, to be backdated to 2008 when he assumed office.

The four members of the Speaker’s panel, MPs Gitobu Imanyara, Joyce Laboso, Ekwe Ethuro and Philip Kaloki, will also get Sh1.2 million each for every year served.