Why Kibaki and Moi may refund pension

Former Presidents Mwai Kibaki and Daniel arap Moi who risk being compelled to refund the millions of shillings they have earned in retirement benefits since 2013. FILE PHOTO | NATION MEDIA GROUP

What you need to know:

  • This follows a ruling by a High Court judge on Friday last week in which he declared the Presidential Retirement Benefits (Amendment) Act 2013 unconstitutional and stopped the government from paying any further monthly pension to the two former presidents.
  • Nairobi lawyer Anthony Oluoch confirmed receiving instructions from the public to file a suit seeking to recover what Mr Kibaki and Mr Moi have already been paid.
  • Justice Isaac Lenaola had invalidated the Act on the grounds that the National Assembly contravened the Constitution by passing the law without involving the Salaries and Remuneration Commission.

Former presidents Mwai Kibaki and Daniel arap Moi risk being compelled to refund the millions of shillings they have earned in retirement benefits since 2013.

This follows a ruling by a High Court judge on Friday last week in which he declared the Presidential Retirement Benefits (Amendment) Act 2013 unconstitutional and stopped the government from paying any further monthly pension to the two former presidents.

Nairobi lawyer Anthony Oluoch confirmed receiving instructions from the public to file a suit seeking to recover what Mr Kibaki and Mr Moi have already been paid.

“We will file the petition in the next two days. We believe the judgment proved that public finance was used in a manner that does not promote good governance and the Constitution gives any citizen a right to seek recovery of lost funds,” said Mr Oluoch.

However, another lawyer, Mr Henry Kurauka, said refunding the money might not be easy as the two former presidents had been earning their pensions based on a recognised law.

REFUND UNLIKELY

The Act, he added, was then constitutional and any benefits that had been paid to Mr Kibaki and Mr Moi could not be refunded just because it had been invalidated.

“You cannot claim back what was done within the confines of the law. It will only become an offence if the Treasury continues to pay them when the Act has been invalidated. If that happens then anyone will be justified to seek a refund through the courts,” said Mr Kurauka.

Justice Isaac Lenaola had invalidated the Act on the grounds that the National Assembly contravened the Constitution by passing the law without involving the Salaries and Remuneration Commission.

The Act provided for the computation of the benefits payable to a retired president by setting the monthly amounts payable as housing, fuel, utilities and entertainment allowances to a percentage of the monthly salary the president earned.

The Act enabled Mr Kibaki to take home a lump sum of Sh25 million for the two terms he served as president.

He was also getting a pension of Sh560,000 every month, an entertainment allowance of Sh280,000 and a housing allowance of Sh300,000 to cater for both his urban and rural homes.