When President Kibaki walks out of State House after the next elections, he will go home with a hefty gratuity—Sh50 million. The gratuity, the highest to be paid in the history of the country, has already been factored into the 2012/2013 budget by newly appointed Finance minister Njeru Githae.
Apart from the one-off payment of the gratuity, Githae also proposes to increase the annual allocation for retired presidents from the current Sh17.7 million to Sh30.2 million. The increase is meant to cater for the monthly pension which is due to Kibaki plus what taxpayers have been paying Moi since he left office in early 2003. The two will continue to draw the pension for the rest of their lives.
The gratuity is considered a 'token of appreciation' from Kenyans for the 'hard work' the President has been doing for the two terms he will have served by the time he leaves office. The amount is calculated as a sum equal to one year's salary for each term Kibaki has served as President as stipulated in the Presidential Retirements Benefits Act of 2003.
Kibaki will also be entitled to get a monthly pension equal to eighty per cent of his current monthly salary. Kibaki is currently paid a basic monthly salary of Sh2 million (about $26,000) and earns an average of Sh24million ($200,000) a year under the current exchange rate.
It is not clear whether the pension will be calculated on this salary of the Sh2 million or the Sh3m basic pay which was increased in 2006. The President rejected the salary raise saying there were other priority projects in need of urgent funding. He thanked MPs for their concern but told them that remuneration due to public officers be a true reflection of the economic and social times of the nation.
Based on the Budget estimates tabled in Parliament last week, Kibaki and Moi will each be receiving about Sh1.4 million as their monthly pension until they die. The amount will continued to be paid to First Lady Lucy Kibaki if she survives him. The pension amounts will increase if the salary of the serving President also increases.
The budget estimates indicate that for the 2012/13 financial year, monthly pension for retired Presidents will jump from 17.7 million last financial year to Sh 30.2 million. The figure has been projected to rise to Sh 31.1 million in 2013/14 financial year and then to 32.0 million in 2014/15 financial year. The allocations are under Consolidated Fund Services in the budget estimates.
Reports are that Kibaki is planning to retire at Sasini Estate, 25 kilometres from his Kanyange home in Othaya. The 1,000-acre farm is situated near Mweiga town on the Nyeri-Nyahururu Highway in Kieni West district. Constructions of a palatial home estimated to cost taxpayers Sh500 million is going on. The estate is known for its coffee farms and the rearing of grade diary cattle. It has an airstrip which will make it easy for a retired Kibaki to visit his other homes in Nairobi’s Muthaiga estate and Othaya.
Apart from the Sh50 million gratuity and the monthly Sh 1.4 million pension, Kibaki will also be entitled to a housing allowance of Sh =300,000 per month to cater for his homes in Nairobi and upcountry. He will also be receiving Sh300,000 each month for his utilities—electricity, water and telephone allowances— and a further Sh200,000 every month as entertainment allowance.
Taxpayers will also finance the purchase of four top of the range vehicles of his choice. Two of the vehicles must be four-wheel drive with an engine capacity 3,400 cc and the other two must have an engine capacity of at least 3,000 cc. If he gets these new vehicles at the time he is leaving next year, Kibaki will be free to replace them with new ones after three years. To run all these vehicles, taxpayers will be paying Kibaki Sh200,000 as fuel allowance.
Other benefits include full medical and hospital cover that will be providing for local and overseas treatment. This cover will be with a reputable insurance company and will cater for Kibaki and his wife. Since all of Kibaki’s children are over 18 years, they will not be included in this medical cover. Taxpayers will also provide Kibaki with a fully furnished and equipped 'suitable' office and will pay for its maintenance and operations.
A retired Kibaki will have at least 38 servants at his beck and call whose salaries will be catered for by taxpayers. These include six guards for his own security as well as six others to be deployed to his homes in Nairobi and upcountry.
He will also have two personal assistants, four drivers, four messengers, four secretariesm two cooks, two housekeepers, two gardeners, two laundry people and four people to keep his houses clean. He will be free to determine which public officers are seconded to him by the government. These are the same benefits that his predecessor Moi has been enjoying since he left State House.