When President Uhuru Kenyatta leaves office at the end of his term following the August 9 General Election, he will be given a send-off package worth millions of shillings as a gratuity.
Should he fail his ambition to succeed his boss, Deputy President William Ruto, Senate Speaker Kenneth Lusaka, and National Assembly Speaker Justin Muturi will all receive a lavish send-off gift.
Mr Kenyatta will earn a gratuity of Sh72 million and a monthly pension of Sh667,000 once he leaves office, according to the 2022/23 Budget expenditure estimates given with Parliament by National Treasury Cabinet Secretary Ukur Yatani.
The new vote has been given Sh72 million for the fiscal year beginning in July, with a raise to Sh79.2 million in the following year.
A departing president is entitled to “a lump sum payout on retirement, calculated as a sum equivalent to one year’s salary for each term served as President,” according to the Presidential Retirement Benefits Act of 2003.
President Kibaki received roughly three times as much when he left office in 2013 following two terms that began on December 30, 2002. Mr Kibaki left with a Sh25.2 million golden handshake.
Mr Kenyatta’s substantial retirement payout comes at a time when the high cost of living is being criticized due to the country’s weak economy. Similarly, the benefits of retired civil officials have recently come under scrutiny, particularly after allocations to the vote grew by substantial percentages, despite the government’s assurances that it would not.
Mr Kenyatta’s substantial retirement payout comes at a time when the high cost of living is being criticized due to the country’s weak economy.
Similarly, retired civil officials’ benefits have recently come under scrutiny, particularly after vote allocations grew by huge majorities, despite the government claiming to have implemented austerity measures to deal with a rising public sector pay bill.
The monthly wage allocation for retired presidents increased from Sh64 million in 2016/17 to Sh74 million in 2019/20.
Pensions
In preparation of Mr Kenyatta’s retirement, the Treasury has increased its allocation for past presidents’ pensions from Sh34.4 million to Sh42.42 million, beginning in July, to cover former President Mwai Kibaki’s retirement benefits.
This amounts to a monthly pension of Sh666,700, which is equal to the sum due to Mr Kenyatta under the Presidential Retirement Benefits Act of 2003.
The once-a-month pension for a departed president is fixed at 80% of his pensionable income, which is equivalent to 60% of the Sh1.44 million monthly pay granted to a current president. Mr Kibaki earns a monthly stipend of Sh2.86 million from his yearly pension perks of Sh34.43 million, making him Kenya’s highest paid man.
Estimated gratuities for the DP and other designated state officers have increased from Sh430 million this fiscal year to Sh600 million the following fiscal year.
However, because the allocation is lumped together with the two speakers and other retired state officers such as former chief justices, former speakers, former vice presidents Kalonzo Musyoka and Musalia Mudavadi, and former Prime Minister Raila Odinga, it was not immediately clear how much the DP will receive as a send-off package.
Mr Kibaki’s monthly pension dwarfs the allocation provided for Mr Kenyatta and Dr Ruto, whose combined average monthly pay is Sh3.3 million, according to the proposed budget.
After determining that Mr Moi and Mr Kibaki’s allowances were an undue burden on taxpayers, the High Court in 2015 ordered the government to stop paying them.
Retired presidents
The two were entitled to a Sh300,000 monthly home allowance, gasoline (Sh200,000), entertainment (Sh200,000), and utilities (Sh200,000) under sections of the law that the court struck down (Sh300,000).
The law also provides for two personal assistants, four secretaries, four messengers, and four drivers and bodyguards for former presidents, bringing the total number of office and homeworkers to 34 under the taxpayer-funded plan. Every four years, retired presidents are entitled to a new set of four cars, including two limos.
Workers in Mr Kibaki’s Nairobi office, which was purchased for Sh250 million three years ago, are similarly supported by taxpayers.
Meanwhile, retired civil officials have been given an extra Sh3 billion to supplement their monthly pensions. In the coming fiscal year, the National Treasury has set aside Sh43 billion for civil officials’ pensions, with the figure rising to Sh51 billion in 2024.
MPs’ pensions have also been awarded more over Sh1 billion. A monthly pension is only available to MPs who have served for more than two terms. Mr Yatani has also boosted the military pension allotment by about Sh1.3 billion, bringing it to Sh14.5 billion.
