Kibaki, Moi retirement cost crosses half a billion shillings

MONDAY, FEBRUARY 20, 2017 

The cost of keeping former presidents Mwai Kibaki and Daniel arap Moi happy in retirement will cross the half a billion shilling mark starting July, further burdening taxpayers.

The former presidents’ retirement expenses will increase to Sh519.6 million next year, up from Sh321 million in the current year ending June, according to estimates in the national budget tabled in Parliament last week.

The expenses include pension and allowances paid to former heads of state as well as the cost of running their taxpayer-funded offices and staff including personal assistants, secretaries, messengers, drivers and bodyguards. A large share of the retirement expenses or Sh386 million is linked to running their offices. This includes Sh131.4 million for paying staff and Sh255.3 million for buying goods and services.

Their pension has been increased to Sh74 million for the year starting July, up from Sh64 million in the year ending June.

READ: Moi and Kibaki pension will rise to Sh74m next year

AUSTERITY MEASURES

The national budget indicates that the former presidents have a separate benefits budget, which currently stands at Sh58.8 million or Sh4.9 million monthly.

If paid equally, the pension package assures each a monthly payout of Sh3 million — a figure that is higher than President Uhuru Kenyatta’s official salary of Sh1.5 million.

Retirement benefits of former presidents have come under sharp criticism, especially in the last couple of years when allocations were increased by large margins even as the government insisted it had put in place austerity measures to deal with an increasing wage bill.

The High Court in 2015 stopped payment of allowances worth millions of shillings to the two former leaders, saying they were an unnecessary burden to the taxpayer.

The attorney-general appealed the decision, allowing the two to continue enjoying the hefty allowances.

Parts of the law that the court nullified entitled Mr Kibaki and Mr Moi to a Sh379, 500 monthly house allowance, fuel allowance of Sh247,500, entertainment perks of Sh247,500 and utilities of Sh379,500.

Mr Kibaki signed the allowances into law two weeks before his retirement, effectively awarding himself millions of shillings on his way out.

UNCHARGED

The benefits budget of Sh58.8 million will remain unchanged next year. The law also entitles them to two personal assistants, four secretaries, four messengers, four drivers and bodyguards.

Taxpayers also pay for workers in Mr Kibaki’s Nairobi office, bought for Sh250 million three years ago, and Mr Moi’s office at Kabarnet Gardens, off Ngong Road.

Mr Kibaki left office in 2013 after two five-year terms while Mr Moi retired in 2002 after 24 years in power.

Parliament passed the generous package as an incentive for politicians to leave office voluntarily in the knowledge that their comfort was assured.

The package has also come under heavy criticism on grounds that the retired presidents left office as rich men with property worth billions of shillings and vast business interests.