ANC party leader Musalia Mudavadi has been allocated Sh41.9 million in pension benefits that include cash for his ride, complete with maintenance costs.
The allocation is courtesy of the two months he served as vice president towards the end of President Daniel arap Moi's reign in 2002.
The second supplementary budget estimates seen by the Star shows that Kenyans will now pay salaries of temporary staff attached to Musalia.
The supplementary budget is due for debate at the National Assembly on Tuesday afternoon.
The former vice president, in the new allocation for the year ending June 2022, will be provided with Sh2.5 million for basic wages for temporary employees.
He will also get Sh20 million for his insurance cover and Sh16 million for the purchase of vehicles and other transport equipment.
The Treasury, in the second supplementary estimates, will also give Musalia Sh2 million for routine maintenance of the vehicles and Sh1.3 million for fuel, oil, and lubricants.
A retired deputy president is entitled to a monthly pension equal to 80 per cent of the monthly salary of what he got as salary while in office.
He is also entitled to a lump sum payment calculated as a sum equal to one year's salary paid for each term served in office.
Musalia, following the payout, will also be entitled to two saloon cars of an engine capacity not exceeding 2,000cc replaceable every four years.
Retired VPs are also entitled to a four-wheel-drive vehicle with an engine capacity not exceeding 3,000cc replaceable once every four years.
Also in the package is fuel allowance equal to 15 per cent of the monthly salary of the current officeholder, full medical cover for local and overseas treatment for self and spouse.
The law spells the benefits to include two drivers, a personal assistant, secretary, an accountant, two housekeepers, two senior support staff, two cooks, two gardeners, two cleaners, armed security guards, diplomatic passports for self and spouse, office equipment, maintenance expenses, and access to VIP Longue at all airports within the country.
Pension allocations for former Prime Minister Raila Odinga and former Vice President Kalonzo Musyoka have been slashed in the new estimates.
The ODM leader's allocation is down by Sh13.4 million of the Sh78.7 million he got this financial year, while Kalonzo is set to have his allocations reduced by Sh19.8 million.
In the ensuing changes, Kalonzo’s utilities and supplies budget is now set at Sh200,000 from the initial Sh1.4 million that was approved in the 2020-21 budget.
The Wiper leader’s communication, supplies and services allocation has been set at Sh650,000 down from the Sh1.6 million in the previous estimates.
His allocation for travel has also been reduced to Sh3.2 million from Sh6.5 million while Sh10 million which was to cater for rent has been slashed.
Treasury has also reduced the former vice president’s hospitality budget for the current year by Sh4.5 million but he will get Sh1 million more for vehicle maintenance and Sh600,000 for office supplies.
Raila will lose Sh1 million allocated for communication, Sh3 million for domestic travel, Sh3 million for rent, Sh2.8 million for hospitality, and Sh1.7 million for vehicle purchase.
At least Sh9.2 million has been set aside in the current budget for the administration of the statutory benefits to retired presidents and vice presidents.
The payments are executed in line with the provisions of the Retirement Benefits (Deputy President and Designated State Officers) Act, 2015.
Musalia, Treasury data shows, was enrolled in monthly pension payroll from April 2014 and has continued to receive a monthly pension to date.
His pay was capped at Sh214,691 per month, being retirement benefits provided under the Parliamentary Pensions Act, Chapter 196 of the Laws of Kenya.
Musalia served as MP from April 1989 to January 2013 and served as vice president for two months in 2002 and as deputy prime minister from 2008 to 2012.
His term as MP was however interrupted between 2003 and 2007 after losing the Sabatia parliamentary seat to Moses Akaranga in 2002. He bounced back during the 2007 General Election.
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 lump sum gratuity of Sh11.4 million and Sh190,750 monthly pension—now increased to Sh214,700.
Treasury held that by virtue of having served as vice president for two months between November and December 2002, Musalia falls within the meaning of the DPDSO Act.
The Budget and Appropriations Committee of the National Assembly chaired by Kieni MP Kanini Kega has approved the new estimates.
Treasury CS Ukur Yatani presented the new estimates to the House last Monday, barely a week to the end of the current fiscal year.
Following the conversion in line with the DPDSO Act, the former VP will now earn a monthly pension of Sh240,000—calculated at 80 per cent of the last earned salary.
The new rate will, however, not be subject to the biennial pension increases but Musalia will access the benefits during his lifetime.
There are concerns about the burden of keeping former state officials comfortable in retirement, in the face of the hefty annual increments.
President Uhuru Kenyatta and the 416 lawmakers are set to walk away with nearly Sh1 billion in gratuity payments when Jubilee’s term ends in August next year.
Next year’s annual pension bill is set to increase by Sh40 billion from the current Sh111 billion.
The bill will increase to Sh171 billion for the year ending June 2023; Sh191 billion in the year to June 2024, and Sh211 billion in the succeeding year.
Budget records show that payment and administration of retired presidents’ benefits have cost the taxpayer above Sh6 billion for the past six years.
The Treasury has over time defended the payouts, saying it is obliged to meet the pension expenses as required by the law.
Edited by P.O
