Treasury plan to shield pension perks of VIPs in the controversial Finance Bill 2023
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Treasury plan to shield pension perks of the retired VIPs in the proposed controversial Finance Bill 2023
Treasury plan to shield pension perks of the retired VIPs in the proposed controversial Finance Bill 2023.
The Treasury plans to safeguard the retirement benefits of retired VIPs; Deputy Presidents, retired Vice Presidents, retired Prime Ministers, and other senior officers, including Speakers of Parliament even if they violated the law.
The State is proposing to abolish controversial clauses in the Retirement Benefits (Deputy President and State Officers) Act that specified when benefits could not be provided to officers, including the retired Chief Justice and Deputy Chief Justice.
“The Retirement Benefits (Deputy President and State Officers) Act, 2016 is amended by inserting the following new sections immediately after section 4 4A. (1) A person who— (a) holds an appointive or elective office in the Government; and (b) previously held a position to which pension and other benefits accrue under this Act, shall, upon retirement or ceasing to hold that office entitled under this Act, be paid- (i) a monthly pension equal to eight per cent of the monthly salary of the entitled person’s last monthly salary while in office; and (ii) a lumpsum payment on retirement as calculated as a sum equal to one year’s salary paid for each term served in office” the Finance Bill 2023 reads in part.
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Previously, the benefits could be discontinued in instances where a person was guilty of gross misconduct; was in willful violation of the constitution; had been convicted and imprisoned for more than three years; or had continued to engage in activities of a political party after ceasing to hold office.
“The proposed repeal would mean that retired Deputy Presidents, retired Vice Presidents, retired Prime Ministers, and other senior officers, including Speakers of Parliament, retired Chief Justice, and Deputy Chief Justice would not be denied their prescribed retirement benefits under any of the circumstances currently outlined by the Act,” analysts at KPMG said in a note.
This comes in the wake of growing pressure from members of the ruling Kenya Kwanza coalition to have the retirement benefits of former top officers including retired President Uhuru Kenyatta, ex-Prime Minister Raila Odinga, and ex-Deputy President Kalonzo Musyoka for engaging in active politics.
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