
We've improved people's payslips – Mbadi
Mbadi said that the new tax law is a relief to Kenyan employees
The senate had recommended payment of Sh2.3bn to 11,919 former councillors.
In Summary
Treasury CS John Mbadi has ruled out any honorarium and monthly pension payments to former councillors, citing a lack of a legal framework to support the same.
Speaking on Wednesday, Mbadi said that while the Senate had resolved to have them paid in October 2018, backed by recommendations from the Inter-Agency Task Force, the Treasury could not proceed with the payments.
“The delay in implementing the Senate resolution of 18th October 2018 and the recommendations of the Inter-Agency Task Force on the payment of honoraria and pensions to former councillors has been primarily due to legal constraints,” he said.
“The Attorney General, in a legal opinion dated May 8, 2023, advised that there was no legal basis to support the proposed one-off honoraria payment of SH200,000 to former councillors who served for less than 20 years.”
Mbadi was responding to questions in the Senate.
Meru Senator Kathuri Murungi had sought to know why the Treasury had delayed the payment despite the parliamentary resolution of 2018.
The CS said the AG further noted that there was no formula for determining benefits as the councillors did not receive any salary.
Mbadi said the then Ministry of Local Government had also only limited pension or gratuity payments to councillors who had served continuously for 20 years or more as of December 13, 1993.
“The legal advisory highlighted the absence of a structured formula to determine benefits, given that councillors were not salaried but received allowances that varied across different regions. Consequently, implementing the proposed payment of Sh2,383,800,000 to 11,919 former councillors lacks the necessary legal and policy foundation.”
He, however, said the National Treasury is considering an alternative approach, which will be done through the Inua Jamii programme.
Mbadi said this will be done together with the State Department for Social Protection to identify those already registered and the registration of those not enrolled.
“The State Department for Social Protection, in collaboration with the relevant Government agencies, including the National Treasury, has been verifying eligible registrants into the program,” he said.
The CS reiterated that he will consult with the Auditor General for an audit of the 328 former councillors identified to be eligible.
He said this will help identify those who are still alive before the next course of action is taken.
Mbadi said that the new tax law is a relief to Kenyan employees