Treasury: No BBI link to Raila, Kalonzo, Mudavadi perks

The Treasury has dismissed claims that former Prime Minister Raila Odinga's and former Vice President Kalonzo Musyoka's pension perks are being raised to facilitate them in BBI campaigns.

The ministry said the proposals in the Supplementary Estimates I before the National Assembly are in line with the law governing the payment of pension due to state officers.

The estimates show that the two leaders will get expanded benefits that were not catered for when Treasury unlocked their pensions.

Raila’s allocations are set to go up by Sh7 million while Kalonzo’s budget is being realigned to meet operation costs.

But Treasury defended the adjustments, saying it is obliged to meet the pension expenses as required of the law.

The Exchequer says it invoked the Retirement Benefits (Deputy President and Designated State Officers) Act, 2015.

It applies to Deputy President and Prime Minister, Vice-President or Speaker, Deputy Chief Justice or Chief Justices who served after January 1, 1993.

In this regard, the CS Ukur Yatani-led Treasury says the former state officers are now being paid under the DPDSO Act.

Under the Parliamentary Pensions Act, Raila was paid a lump sum of Sh11,184,000 and draws a monthly allowance of Sh209,700.

Upon conversion to the Designated Officers Act, his monthly pension slightly adjusts to Sh240,000.

“The other benefits include two saloon cars, a four-wheel-drive vehicle, full medical cover for self, and spouse; and fuel allowance,” the ministry said.

Kalonzo's pension dues were processed and paid on March 2, 2014 where he was awarded a gratuity of Sh28.8 million and a monthly pension of Sh480,000.

His current monthly pension is Sh540,000 — owing to the subsequent statutory biennial pension increases.

“Upon conversion to the Designated Officers Act, his monthly pension slightly adjusts to Sh240,000,” the ministry said.

Kalonzo’s other benefits include two saloon cars, a four-wheel-drive vehicle, full medical cover for self and spouse; and fuel allowance.

Treasury data further shows that Amani leader Musalia Mudavadi was enrolled in monthly pension payroll with effect from April 2014.

He has continued to receive a monthly pension to date, currently at Sh214,691 factoring increases that are effected every year.

His retirement benefits were provided for under the Parliamentary Pensions Act, Chapter 196 of the Laws of Kenya. 

Mudavadi was MP from April 1989 to January 2013 and served as Vice President in 2002 and as Deputy Prime Minister from 2008 to 2012.

The National Assembly lodged a claim of payment of his retirement benefits in March 2014 under the Parliamentary Pensions Act, effective February 2013.

The request was processed of which he received a lumpsum gratuity of Sh11.4 million and Sh190,750 monthly pension —which has since increased.

Treasury says that by virtue of having served as vice president for two months November 2002 to December 2002, he falls within the meaning of the DPDSO Act.

If his retirement benefits were to be processed entirely under the designated state officers’ law, there would be a set-off of Sh5.7 million.

The amount is the difference between monies paid under the Parliamentary Pensions Act above what is payable under the DPDSO Act for the applicable period.

Once converted, he would start earning a monthly pension of Sh240,000, calculated at the rate of 80 per cent of the last earned salary.

However, the new rate would not be subject to the biennial pension increases.

On conversion, Mudavadi would access benefits among them vehicles, fuel allowances, vehicle maintenance, allowance, medical cover, and office equipment during his lifetime.

In the latest adjustments, Raila is set to get Sh1.2 million for water and electricity; Sh2.1 million for communication services; and Sh4.8 million for domestic travel; Sh1.5 million for routine maintenance, and Sh4.1 million for hospitality.

The ODM leader’s budget for fuel has also increased by Sh1 million to a new figure of Sh2.5 million.  

Kalonzo has been allocated Sh1.4 million for utilities—water and electricity supplies; Sh1.5 million communication services; Sh6.5 million for domestic travel; Sh10 million for rent; Sh150,000 for training expenses; Sh5.5 million for hospitality — to entertain guests, and Sh1.5 million for office supplies.

Kalonzo’s budget for fuel has also been increased by Sh1 million up from Sh1.5 million that was allocated in the budget for this year.

He is also set for a benefit of Sh1.5 million for routine maintenance of other assets.

-edited by Sarah Kanyara