The next crop of MPs and MCAs have reason to smile after the SRC approved hefty direct benefits for them despite scrapping plenary sitting allowances.
In a classic case of taking by one hand and rewarding through the other, the Salaries and Remuneration Commission said it had “reviewed and upgraded” the roles of MPs that gave them enhanced perks.
The latest salaries review has handed MPs handsome benefits including revised mortgages of up to Sh35 million as well Sh7.5 million car grant fashioned as a 'motor vehicle reimbursement.
The changes were gazetted on Thursday.
The latest perks fly in the face of SRC's aggressive push to bring down the country's public sector wage bill, which hit Sh827 billion in the year ended June 2020.
Also set for huge benefits are Members of the County Assembly and their speakers after the SRC reviewed their pay grades upwards, handing them improved perks.
Under fresh SRC salaries and benefits for lawmakers and other state officers, the commission increased the mortgage capping for MPs from Sh20 million to Sh35 million.
This would give the new MPs headroom to borrow more to own new homes in Nairobi after the August 9 general election.
SRC has also approved an increase of an MP's gross salary pay from Sh621, 250 to Sh710,000.
The MPs in the bicameral House will also enjoy a car grant now renamed as 'motor vehicle reimbursement' of Sh7.5 million, payable once every five years.
They will also have access to an enhanced car loan of Sh8 million.
The SRC appeared to cave in to demands from MPs who had demanded that their car grant be increased from the current Sh5 million to Sh10 Million, citing taxes.
During stormy meetings with the Parliamentary Service Commission, the statutory body that employs MPs, the SRC had proposed to slash the lawmakers' tax-free-car grants to Sh3.5 million.
The two speakers of the National Assembly and the Senate have their car loans of up to Sh10 million and mortgage of Sh40 million, repaid within a parliamentary term of five years.
The Speakers of the Senate and National Assembly shall be provided with an official and physical residence together with commensurate home utilities and attendants by the state.
In the reviews that were gazetted by the SRC, the MPs also won big after the commission handed them Sh356,525 per month to maintain their high-end cars.
The MPs will also enjoy enhanced mileage claim rates after the SRC capped their minimum amount payable for their travel to constituencies at Sh353,778 per month up from Sh266, 663.
This pay covers a distance of between 0-750km.
Despite scrapping the MPs' plenary sitting allowances, the SRC increased their committee perks from a minimum of Sh80,000 per month to Sh120,000.
This was after allowances per session were enhanced from Sh5,000 to Sh7,500 for ordinary committee members.
For vice-chairpersons of committee members, SRC handed them a maximum of Sh92,000 per month with their sitting allowances increased from Sh8,000 to Sh12,000.
Chairpersons of committees who have been taking home a maximum of Sh128,000 monthly in committee sitting allowances will now smile all the way to the bank with a cool Sh240,000 monthly.
Their sitting allowances were enhanced from Sh10,000 to Sh15,000 per session with a maximum of 16 sittings per month.
The SRC has also introduced a new special parliamentary duty allowance for House leaders – Leader of Majority, Leader of Minority, Whips from the majority and minority sides at Sh150,000 per month.
“The Parliamentary Service Commission shall apportion the rate of Special Parliamentary Duty Allowance, up to a maximum of Sh150,000 per month, to each of the designated state officers with leadership duties in parliament based on seniority as provided by the Constitution, legislation or Standing Orders,” SRC said in the Gazette notice.
Gross pay for the Speakers of the two houses is also set to increase by Sh5,000 to peak at Sh1.16 million while that of the deputy speaker would be capped at Sh928,000 from Sh924,000.
For the medical cover, MPs would be allowed to cover up to five children from the current four with the Speakers of both Houses set for an increment of airtime of Sh25,000 per month while MPs will get Sh15,000.
In the pay structure that will come into force from August 9, SRC has further increased the dental and optical cover for MPs to Sh100,000 respectively from the present Sh75,000.
For county governments, Executive Committee Members who have been earning Sh144,375 had their gross monthly salary increased to Sh404,250 per month.
This is one category of county staff that had been identified during the SRC job evaluation exercise as lowly graded alongside the county assembly speakers.
In new perks, the county assembly speakers will take home a gross salary of Sh525,125 per month from Sh259,875 – an increase of Sh265,250.
“The roles of the Members of Parliament, executive committees and county speakers are upgraded and are upgraded as a result of job evaluation,” SRC said in the review gazetted on Thursday.
The CECs will now be entitled to a car loan of up to Sh4 million, airtime of Sh10,000 per month and a mortgage not exceeding Sh20 million as well as official transport by the county governments.
On their part, MCAs are also set to get a motor vehicle reimbursement of Sh2.2 million and a car maintenance allowance of Sh30,000 per month – paid to the deputy speakers and MCAs.
The mileage claims by the county lawmakers have been capped at Sh30,000 per month from the current Sh22,000.
While the plenary sitting allowance was abolished, committee sitting allowances have been capped at Sh104,000 per month for the chairperson.
Vice chairpersons will take home a maximum of Sh83,200 and Sh62,000 for ordinary committee members per sitting.
Whereas chairmen's sitting allowance has been increased by Sh1,500, a package of Sh5,200 per sitting has been introduced for vice chairpersons while MCAs are set for a raise of Sh900 per sitting.
SRC has further introduced special duty allowances for county assembly leaders of majority and minority at Sh32,000 per month and Sh29,000 for Chief Whip per month, deputy majority leader and minority leader.
Deputy whips will pocket Sh26,000 as well as chairpersons of committees while vice chairpersons of committees will take home Sh23,000.
Every member of the speaker's panel will take home Sh20,000 per month.
The salaries agency is also granting MCAs leeway to borrow up to Sh5 million to purchase a car or a home, with the car loan and mortgage to be managed by respective County Assembly Service Boards.
SRC has also set that speakers of county assemblies be provided with an official residence together with commensurate home utilities and attendants facilitated by the state.
“The official residence shall be a physical building or house owned by the county government. The benefit shall not be commuted to cash in lieu of an official residence,” SRC said.
Kenya’s public sector wage bill stands at 50 per cent of annual government tax revenue and the IMF puts the global benchmark at 35 per cent.
The government has for years struggled to contain its ballooning wage bill that has squeezed funds for development, forcing the State to take loans for financing development projects and paying salaries.
(Edited by V. Graham)
