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Kenyan MPs award themselves Sh 2bn in secret deal....President Kibaki rejects it!

Discussion in 'Kenyan News and Politics' started by Ab-Titchaz, Oct 6, 2012.

  1. Ab-Titchaz

    Ab-Titchaz Content Manager Staff Member

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    MPs award themselves Sh2bn bonus in secret deal

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    The National Assembly.

    By ALPHONCE SHIUNDU ashiundu@ke.nationmedia.com
    Posted Friday, October 5 2012 at 23:30

    In Summary

    • Sweetheart package gives each of the 222 MPs Sh9.3m in send-off perks as Kenyans prepare to pay higher taxes to foot bill

    MPs have secretly added a Sh2.1 billion severance pay to their already huge package.

    The higher perks, approved on Thursday night, however came about as Finance Minister Njeru Githae increased taxes to raise the money required to meet public servants' demands for better salaries.

    In the last-minute changes introduced in Parliament on Thursday night, each of the 222 MPs and House Speaker Kenneth Marende will take home a minimum package of Sh9.3 million on January 15 next year when their term expires.

    Meanwhile, a 10 per cent Excise duty will now be levied on mobile money transfers such as M-Pesa, making the services more expensive. The services are run by banks, money transfer agencies and mobile phone companies.

    The minister also raised taxes on beer, wine and other alcoholic drinks to Sh70 per litre – or 50 per cent of the ex-factory price – and on raw hides and skins destined for foreign markets in a bid to revive and improve local tanneries.

    Mr Githae also has his eye on the money made in the data market – through cable, the Internet, fibre-optic and satellite – seeking to tax "gains or profits made from the business of transmitting messages".

    The mining industry will also pay more taxes after the House allowed Kenya Revenue Authority to tax proceeds from the sale of property or shares, more so for oil companies, or other firms involved in mining or mineral prospecting.

    The vice-chairman of the Parliamentary Service Commission (PSC), Mr Adan Keynan, sneaked in the amendments, as approved by the Finance minister, just moments before the House concluded putting final touches on the Finance Bill 2012.

    Once assented to, the Finance Bill grants the taxman the licence to collect taxes in order to meet the government's revenue targets as prescribed in the annual national budget.

    Tellingly, the amendment was not in the Order Paper like the ones by the minister on raising taxes, and not all MPs had access to it even after it was tabled. There was no debate on the clause; it was just approved, unanimously.

    The change will see the Treasury calculate the "severance allowance" at 31 per cent of MPs' pay, including their hefty tax-free perks. The computation will be based on their basic pay of Sh200,000 and all allowances – except sitting allowance – amounting to Sh651,000.

    The perks include house allowance, extraneous duty allowance, transport allowance, entertainment allowance, vehicle fixed cost allowance and constituency allowance. Each of the 12 nominated MPs also get an allowance; so do the two ex-officio members - the Speaker and the Attorney-General.

    Second time in six months

    This is the second time in less than six months that the lawmakers have raided the public coffers to line their pockets as they scrounge around in their brazen bid to raise money for the political campaigns ahead of the General Election.

    On April 19, again in at dusk, they changed the law to raise the severance package – hitherto called "the winding-up allowance" – from Sh1.5 million to Sh3.72 million per MP. And just as then, this week's Sh5.6 million addition was made through the Finance Bill.

    The mischief of raising their perks through the Finance Bill ensures that MPs can do it at the eleventh hour, quietly, and since it has to do with taxes it is guaranteed that the President will have no option but to assent to it.

    The law, once enacted, will see the MPs paid at 31 per cent of their Sh200,000 basic pay for every year in service until August 26, 2010 when the Constitution was promulgated. From then until the end of their term on January 15, 2013, the calculation will be based on a gross pay of Sh851,000.
    Not surprisingly, the lawmakers are unbowed by the legal requirement to have the pay issue handled by the Salaries and Remuneration Commission.


    MPs award themselves Sh2bn bonus in secret deal - Politics - nation.co.ke
     
  2. The Boss

    The Boss JF-Expert Member

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    Na still watarudishwa bungeni
     
  3. B

    Bamzi Member

    #3
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    Actually no kenyan should complain coz tutawarudisha bungeni bado.They are our beloved thugs.
     
  4. charminglady

    charminglady JF-Expert Member

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    source. dira ya dunia, bbc london
     
  5. h

    hans79 JF-Expert Member

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    Mashahara mkubwa so mbaya kuliko hawa wa tz rushwa tupu wananuka.
     
  6. E

    Elizabeth Dominic Platinum Member

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    Wanalipwa shingapi?
     
  7. Mwakalinga Y. R

    Mwakalinga Y. R Tanzanite Member

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    kweli Afrika ni zaidi ya bara aka continental...
     
  8. Father of All

    Father of All JF-Expert Member

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    Unacheza na manyang'au nini? Ile nchi ni kila mtu achukue kila kitu wengine watajijua. Hata wabunge wa bongo wanazo pesa nyingi sema zinatokana na rushwa na dili za kuuza nchi. Hii ndiyo maana akina Zitto Kabwe wana utitiri wa magari ya bei mbaya huku wakijifanya hawataki posho ya makalio wakati wa ten percent. Shame on them all!
     
  9. Root

    Root JF-Expert Member

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    Tz nao watafata aiseee hahah inanekana ubunge/siasa ina deal sana

    Sent from my BlackBerry 9860 using JamiiForums
     
  10. simplemind

    simplemind JF-Expert Member

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  11. Maundumula

    Maundumula JF-Expert Member

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    Wanalipwa 1.2m kshs changamoto kwetu.
     
  12. charminglady

    charminglady JF-Expert Member

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    Elizabeth Dominic pitia hapa!
     
    Last edited by a moderator: Jan 4, 2016
  13. PhD

    PhD JF-Expert Member

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    you are the father of all the falls in JF badala ya kuchangia mada kwa ushahidi unaongelea stori za magazeti kama fahamu na tazama ambayo wahariri wao hawajawahi kufika la saba
     
  14. h

    hippocratessocrates JF-Expert Member

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    Mkuu ni almost 1.2 million Kshs/month..
     
  15. mchemsho

    mchemsho JF-Expert Member

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    sasa mrembo si ungesubiri kwanza usikie ni dolari ngapi ndo uanzishe uzi?
     
  16. Father of All

    Father of All JF-Expert Member

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    PhD acha umbea. Nimetoa ushahidi wa magazeti gani wakati sijataja hata gazeti hata moja? Mbona unajihisi nawe ni mmojawapo nini? Mwanangu acha upashkuna na kuwashwa washwa uangalie hoja. Kwani wabunge wengi wa Tz si mafisadi na wenye mali nyingi kuliko hata hao wa Kenya? Kinachowasumbua watu kama wewe ni unafiki na ushakunaku. Acha hizo mwanangu.
     
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  17. Ab-Titchaz

    Ab-Titchaz Content Manager Staff Member

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    Kibaki rejects MPs' Sh2bn send-off pay

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    The President objected to the amendment on the grounds that it was first unconstitutional and secondly untenable in the prevailing economic circumstances in the country. Photo|FILE|NATION MEDIA GROUP

    By NATION TEAM newsdesk@ke.nationmedia.com
    Posted Wednesday, October 10 2012 at 01:38

    In Summary

    • The amendment would have awarded the lawmakers a Sh2 billion send-off package on January 15 next year when their term expires.
    • The President objected to the amendment on the grounds that it was first unconstitutional and secondly untenable in the prevailing economic circumstances in the country.
    • The MPs secretly added the amendment on Thursday night in last minute changes amidst recent national strikes by doctors, lecturers and teachers.

    President Kibaki on Tuesday night shattered the MPs dream of a Sh2 billion sweatheart send off when he declined to sanction the deal stating the country's economy was unable to shoulder an extra financial burden.

    The Head of State refused to assent to the Finance Bill, 2012, saying that the country could not afford the colossal perks that the MPs had awarded themselves in form of a severance package. (READ:
    MPs award themselves Sh2bn bonus in secret deal)

    "The President objected to the amendment on the grounds that it was first, unconstitutional and second, untenable in the prevailing economic circumstances in the country," a dispatch from State House Nairobi said.

    Perhaps convinced by the countrywide protests at the arrangement, he stopped the hopes of MPs passing the amendments for a Sh9.3 million severance allowance in the Finance Bill, 2012-through which the Treasury hoped to raise Sh40 billion more in new tax measures-then the President would be forced to give it the nod.

    But he signed into law amendments to electoral laws that extended the period to January 4, 2013 by which MPs should have identified a political party on which to vie for a seat in the next General Election.

    A statement from State House said the President had objected to the Finance Amendment Bill (2012) because it was "unconstitutional and untenable."

    "Coming shortly after the increment of salaries for teachers and doctors, the severance pay for Parliamentarians would lead to an unsustainable wage bill," said part of the statement which also argued that the huge payout would compel the government to forfeit other compelling programs.

    This means that the lawmakers will now have to yield to the President's demands; or raise the two-thirds majority required to overturn the President's decision and force him to sign the Bill into law.

    The MPs, being State Officers, had flouted the legal requirement to leave the issue of pay to the Salaries and Remuneration Commission.

    They will also have to review the amendment that they approved to have all regulations by the Commission on Revenue Allocation and the SRC subjected to parliamentary approval.

    This amendment had been designed to ensure that they had the final say to decide the pay.

    Lately, the MPs have been unable to raise the requisite numbers. But MPs did not come out empty handed. The President okayed the amendment in the Elections Act to extend the period within which an aspirant should have chosen the political party on which to seek nomination and contest a political seat in the forthcoming general elections to January 4, 2013.

    Prostesting move

    Earlier, Kenyans had taken to the streets of Nairobi to protest against the move. They expressed their disapproval and described the lawmakers as "economic terrorists". (
    SEE IN PICTURES: Protest over MPs' bonus)

    Mr Robert Alai, an activist with the Kenyans on Twitter and Facebook, urged President Kibaki not to sign the Bill through which the lawmakers awarded themselves the gratuity.

    "The country is going through very hard economic times calling for more belt-tightening measures, but MPs are already overpaid and underworked yet they decide to award themselves Sh2 billion," he said.

    The protesters waved banners with messages "We do not have money for greedy MPs" and "Kenyans against impunity" as they marched through the city centre to Parliament.

    They chanted: "Hatutaki vitendawili" (We don't want proverbs).


    Kibaki rejects MPs
     
  18. M

    Mnyonge Namba1 JF-Expert Member

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    Naanza kuona tofauti kubwa kibusara kati ya rais wa TZ na yule wa Kenya, haswa juu ya nyongeza ya posho za wabunge. Rais Kibaki kagoma kuidhinisha nyongeza hiyo kwa wabunge wa Kenya.

    Bila shaka ametazama ugumu wa maisha ya walala hoi wa Kenya.. Kikwete aliruhusu hilo mwaka huu.(BBC Swahili leo)... SEMENI SASA HAPO NYIE MNAOITETEA CCM NA RAIS WAKE DHAIFU.

     
  19. M'Jr

    M'Jr JF-Expert Member

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    Habari nilizozisikia asubuhi hii ni kwamba Rais wa Kenya Mwai Kibaki amekataa wabunge kujiongezea posho kwa kuwaambia huo utabukuwa ubinafsi kwani kwa sasa nchi iko kwenye vuguvugu la walimu na maditari kudai nyongeza ya mishahara ambalo halijaisha kwani wameongeza kwa kiwango kidogo tu. Iweje wabunge wao watake kujiongezea mamilioni?

    Nikakumbuka sakata la kwetu hapa, maana lilikuwa linafanana sana na hili lakini lenyewe lilikuwa handled vice versa kabisaaaaa....
     
  20. J

    John W. Mlacha Verified User

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    kikwete hakuchaguliwa na watanzania aliiba kura. Kibaki naye aliiba ila yeye ana akili kidogo
     
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