ODM leader Raila Odinga and his Wiper counterpart Kalonzo Musyoka will get a plum share of a proposed Sh785 million budget for retired state officers.
The two leaders have been allocated Sh200 million each in gratuity as former Prime Minister and former Vice President respectively.
The state has also granted the duo annual pensions of Sh25 million each, translating to about Sh2 million per month.
Should MPs approve the estimates published by National Treasury CS Ukur Yatani, the two will also have part of their expenses paid for by taxpayers at Sh72 million each. A similar amount was appropriated for Raila in the supplementary estimates which President Uhuru Kenyatta assented to last Thursday.
It means that of the Sh785 million allocated in the retired state officers’ budget, Raila and Kalonzo get Sh594 million. The rest is shared by retired President Mwai Kibaki (Sh147 million) and Vice President Moody Awori (Sh44 million).
Treasury records show that Kalonzo received Sh72 million this year for employee wages, insurance, among other provisions.
Of this, Sh26 million was for the purchase of vehicles; Sh10 million office furniture; Sh4.3 million for vehicle maintenance; and Sh1.5 million fuel.
Kalonzo’s insurance and employee wages cost taxpayers Sh20 million and Sh10 million respectively, benefits they enjoy in their lifetime.
The allocations may settle Raila and Kalonzo’s long-time push to get the benefits which the Jubilee administration insisted they quit politics to be awarded.
According to Yatani’s proposal, Kibaki is set to get Sh143 million which includes a personal allowance of Sh31.2 million.
Awori has been allocated Sh44.5 million — a reduction of Sh10 million from what he got last year.
The office that manages the benefits has been allocated Sh325 million for employee salaries, travel, among other operational costs, pushing the budget for retired state officers to Sh1.1 billion.
Benefits to former President Daniel Moi have been frozen following his demise in February. The late president was allocated Sh114 million last year.
Kibaki has been allocated Sh34.4 million for monthly pension, Sh18 million for insurance cover and Sh11.7 million for vehicle purchase.
The former President has been allocated Sh44 million for employee wages as well as Sh3.2 million for local and foreign trips.
The Retired Presidents Benefits Act guaranteed him Sh379,000 house allowance; Sh274 million entertainment allowance; and Sh379,000 for utilities.
Though his allocation is down by Sh20 million compared with last year’s, the amounts involved spotlight strain in perks for VIPs.
Raila and Kalonzo were to get Sh1.5 billion gratuity but it was removed in budget cuts to raise money for Covid-19 emergency response.
The payment has been staggered for the next three financial years with Sh450 million projected for 2022 and Sh600 million for the fiscal year ending 2023.
The kitty is projected to increase to Sh850 million in the financial year ending 2024 – probably factoring President Uhuru Kenyatta’s retirement perks.
The latest allocations are part of the Presidency’s Sh6.5 billion in the Executive’s Sh1.16 trillion recurrent spending plan.
Yatani has drawn a Sh1.75 trillion budget of which Sh584.3 billion will be for development projects.
The budget estimates come amid tough economic times with revenue-raising measures scuttled by the coronavirus pandemic.
The Retirement Benefits (Deputy President and Designated State Officers) Act lists House Speakers, Chief Justice, Deputy Chief Justice among state officers entitled to the exit perks.
Upon death, their surviving spouse shall be entitled to benefits amounting to 50 per cent of the pension.
In the case of more than one spouse, they shall have an equal share of the benefits.
Budget records show that payment and administration of retired presidents’ benefits have cost the taxpayer above Sh5 billion for the past five years.
A review of spending from 2015 to 2020 show that more than Sh2.3 billion has gone into administrative costs expended by the headquarters.
Budget books show that over Sh1.9 billion has been paid out to the VIPs’ day-to-day recurrent expenses.
More than Sh2.3 billion has gone into administrative costs spent by the office managing the funds.
A chunk of the headquarters’ expenses is on hospitality supplies, operations, communication among others.
By the end of this financial year, Moi and Kibaki’s allocations for monthly pension will amount to Sh368 million cumulatively.
First President Jomo Kenyatta’s benefits were about Sh498.2 million during the said financial years. Moi’s is about Sh675 million in recurrent allocations for operations where Kibaki’s allocations so far are in excess of Sh500 million.
In 2015, the High Court stopped the payment of allowances to Moi and Kibaki citing unnecessary burden to the taxpayer.
Justice Isaac Lenaola, in a petition by the Kenya National Commission on Human Rights, ruled that the Retired Presidents Benefits Act as passed in 2013 was unconstitutional.
The Attorney General appealed the ruling, allowing the former state officers to enjoy the benefits.
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