State officers enjoy high life as Kenyans bear brunt of taxes

Former PS Bitange Ndemo. He says a situation where State officers continue to live large as ordinary Kenyans brace for hard economic times is a recipe for chaos. PHOTO | FILE | NATION MEDIA GROUP

What you need to know:

  • The CAS positions come with privileges like staff, vehicles, security and other expenses that are enjoyed by senior state officials.
  • The 416 MPs, including MPs and senators are each entitled to a salary of Sh1.39 million a month, inclusive of allowances.
  • The legislators who earn more than Sh1 million every month due to their allowances — including Sh5,000 sitting allowance.
  • President Kenyatta and his deputy William Ruto spent over Sh1.02 billion within the 2016-2017 financial year.

State officers continue to live large even as ordinary Kenyans brace for hard economic times, which have only been worsened by the recent increase in value added tax (VAT) on fuel products, among others.

While seeking re-election last year, President Uhuru Kenyatta and his deputy William Ruto publicly pledged that cutting wastage in government was going to be a priority in their second term.

However, upon being sworn-in in November, the President reneged on his pledge while forming his Cabinet when he introduced a new position of Chief Administrative Secretary within the Cabinet.

The role of the CAS is ill-defined, but acts like an assistant minister in the old constitution. While the creation of the post is within the President’s powers, it only added another burden to the taxpayer.

VAT ON FUEL

The CAS positions come with privileges like staff, vehicles, security and other expenses that are enjoyed by senior state officials, like the principal secretaries directors and senior staff.

As the President forced down the throats of Kenyans the bitter bill of the eight per cent VAT on fuel as necessary to stimulate the economy, many look at his appointment of the CAS as another example of government wastefulness.

But it is not only him. Maintaining an MP is one of the most costly burden to the taxpayer. The 416 lawmakers, including MPs and senators are each entitled to a salary of Sh1.39 million a month, inclusive of allowances.

This is after the High Court in January temporarily halted a reduction of their pay by the Salaries and Remuneration Commission, which had cut their pay last year from Sh710,000 to Sh621,250 in a move that affected all State officers.

GENEROUS MEDICAL COVER

In addition, the MPs enjoy a generous medical cover, a mortgage facility and a car grant worth Sh5 million each which was reinstated after the High Court ruling.

Furthermore, they are each entitled to a driver, a bodyguard, a secretary and fully staffed office in their constituencies.

But they still want even more. In June, the Services and Facilities Committee chaired by Ezekiel Ombaki (Nyaribari Masaba) tabled a report in the House recommending enhanced pay and other allowances for MPs.

“The members submitted that salaries given to the MPs are not at par with those of other State officers such as judges and Cabinet secretaries,” reads the report.

The legislators who earn more than Sh1 million every month due to their allowances — including Sh5,000 sitting allowance every time they clock in for the plenary session and Sh5,000 for each committee sitting — have been widely criticised for pushing the burden on Kenyans for too long.

UNEQUAL COUNTRIES

An investigation done by the UK-based Independent Parliamentary Standards Authority and the International Monetary Fund in July 2013 appraised Kenyan MPs among the most generously compensated around the world.

This has made Kenya standout among the most unequal countries on the planet with the generously compensated politicians and civil servants living in opulence while those they lead and work for live in wretchedness.

This open avarice by the MPs could have motivated the President to accuse them of playing “good politics, but bad leadership,” when they first rejected the Finance Bill 2018 in which the President had recommend a VAT increase of 16 percent on fuel products.

BIGGER VISION

“The Finance Bill 2018/19 … protected the status quo and sacrificed the bigger vision,” he said. “It took the easy path, instead of rising to the challenges of our time. It was good politics, but bad leadership.”

Legislators argued that they were rejecting the Bill to save the common man on the street from high cost of basic goods, yet their constant demands for more pay calls to question their altruism.

This trend is largely replicated across the 47 counties where governors earn a salary of Sh924, 000 minus allowances. They too are entitled to the same perks enjoyed by the MPs.

Members of the County Assembly (MCAs), as well as the leadership of their county assemblies including their Speakers, Majority and Minority Leaders also have such perks, but of lower figures. But even as the President rapped MPs for speaking with both sides of their mouths on the VAT debate, he too has come under sharp focus for the high expenditure within the presidency, which comprises the Office of the President and the Office of the Deputy President.

FREQUENT TRIPS

State House has in the past been forced to defend Mr Kenyatta’s frequent trips abroad, arguing that the majority of the travels have the potential to attract mega investments that would help lift the country’s fortunes and generate more employment opportunities.

A report released in November last year by the Controller of Budget revealed that President Kenyatta and his deputy William Ruto spent over Sh1.02 billion within the 2016-2017 financial year.

According to the reports, the funds went towards local and foreign trips. Last year, the two spent Sh769.9 million thus bringing many to question the vast increase in expenditure.

Government officers continue to be driven around in as many six guzzlers, the directive on switching to smaller vehicles that was introduced by Mr Kenyatta when he was Finance minister in 2009 having been ignored.

MEAL ALLOWANCES

Ministries still spend up a sizeable chunk of their allocated funds on non-essentials such as gifts, travel, meal allowances, flowers, tea, mandazi and refreshments.

Accompanying this wanton wastage within government ministries, department and agencies, is the outright corruption through fraudulent tendering.

In 2016 former Ethics and Anti-Corruption Commission (EACC) chairman Philip Kinisu told an international media house that Kenya loses a third of its annual budget to corruption every year.

University of Nairobi Business School Associate Professor Bitange Ndemo said this state of affairs is a recipe for chaos.

“One cannot assume that those people in the slums are not watching what is going on and comments being made by some public figures which underline the insensitivity among the government officers,” he said.