This archive report was first published on 3 July 2020.
On July 3, 2020, President Uhuru Kenyatta rejected a plan by Members of Parliament to use taxpayer money to offset their personal loans and mortgages.
The proposal, which aimed to set up a special fund through the Parliamentary Service Commission, was met with reservations by the President.
According to a memorandum to MPs, Uhuru expressed concerns that amending the Public Finance Management Act, 2012, to allow for the establishment of such a fund could lead to duplication of funds and undermine the principle of separation of powers between the Executive and the Legislature.
Instead of using taxpayer money, MPs have proposed setting up several schemes to meet their objective, which will be funded by MPs through contributions.
Addressing the House, Leader of Majority Amos Kimunya argued that Parliament needed such regulation to benefit from the fund.
Speaker Justin Muturi noted that the President recommends amending the Bill to limit the purpose of such funds to cater for Parliamentary Mortgage, Parliamentary Car Loan, and Parliamentary Catering.
