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Treasury Blocks Pay Cuts for Kibaki and Moi

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 29 September 2019.

On September 29, 2019, the Treasury made a decision that would affect the pensions of two former presidents: Mwai Kibaki and Daniel Arap Moi.

According to reports, the Salaries and Remuneration Commission (SRC) had advised the government to adjust the pension for the two former presidents in line with a reduction of President Kenyatta's pay.

However, the Treasury rejected this call, citing the Constitution as the reason for their decision.

The monthly pension of former presidents is set at 80 percent of the current salary paid to the sitting President, in addition to other benefits like fuel, house, and entertainment allowance.

President Kenyatta's salary was trimmed from Sh1.65 million to Sh1.44 million, but this did not affect the pensions of Kibaki and Moi.

According to a top Treasury official, the decision not to review the former presidents' pensions was made because it would have been 'running against the Constitution.'

The official added that 'the Constitution is supreme and it should take precedent, and not the Kenya Gazette.'

The Kenya Gazette notice dated July 2017 had cut the salaries of top officials, including the President, Deputy President, and Members of Parliament.

At the time, SRC indicated that the country would save Sh8.5 billion annually through pay cuts aimed at reducing the ballooning public wage bill.

Chapter 9 of the Constitution states that 'the retirement benefits payable to a former President and a former Deputy President, the facilities available to and the privileges enjoyed by them shall not be varied to their disadvantage during their lifetime.'

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