Kenyan taxpayers will be slapped with a Sh77.1 million bill following President William Ruto’s move to sack 21 Cabinet Secretaries and Attorney General Justin Muturi.
The money to be paid out in the form of gratuity is equivalent to 31 per cent of the CSs’ annual pensionable emoluments (basic pay) before tax for the 20-month period they served in office, the Salaries and Remuneration Commission (SRC) chairperson Lyn Mengich told Nation.
After approval of their appointment by the National Assembly on Wednesday, October 26, 2022, President Ruto gazetted their appointment on Thursday, October 27, 2022.
Upon assuming office, the top government officials were entitled to a gross salary of Sh924,000; with their basic pay pegged at Sh554,400 a month according to a Gazette Notice by SRC published on July 7, 2022.
The reviewed remuneration and benefits for state officers in the Executive of the national Government covered Financial Years 2022-2023.
Considering that the former CSs started working on November 1, 2022, after being sworn in on October 27, 2022, their gratuity to be calculated based on their basic pay of Sh554,000 that covered eight months up to June 30, 2023, amounts to Sh30.2 million before tax deduction.
Consequently, from July 2023 to June 30, 2024, SRC implemented a salary increment for State officers in the Executive of the National Government in a Gazette Notice dated August 9, 2023.
For exactly one year, the earnings of the Cabinet Secretaries increased to a gross salary of Sh957,000 per month while their basic pay shot to Sh574,200.
The total amount of gratuity for their last one year in office subsequently rose to Sh46.99 million before tax deductions.
"While Cabinet Secretaries are entitled to gratuity at the rate of 31 per cent of their pensionable salaries for the time served, the gratuity is subjected to tax," said SRC Chairperson Lyn Mengich.
Therefore, for the 20 months worked, each of the former Cabinet Secretary will earn Sh3.5 million before the mandatory 30 per cent deduction by the Kenya Revenue Authority.
This means that every CS will take home a net of Sh2.45 million after the termination of their contract by the President on Thursday, July 11, 2024.
For purposes of gratuity and pension, the law provides that a State officer shall not benefit from both pension and gratuity benefits from the same public body for a similar period.
The taxpayers are also expected to shoulder an extra send-off package after the President announced a reduction of advisers to the Cabinet Secretaries by 50 per cent.
In a memo sent on Friday, July 12, 2024, to the outgoing CSs, Head of Public Service Felix Koskei directed the 21 ministers to submit to the Public Service Commission (PSC) the names of advisers to be retained by the close of business today (Thursday, July 11, 2024).
“Consequently, you are requested to assess the requirements of your office and indicate the advisor you would wish to retain to support the discharge of your portfolio mandate,” he said in a memo copied to the Attorney General.
“Any advisors beyond the set threshold will be immediately phased out from the public service,” said Mr Koskei.
Mr Koskei stated that the move is among a raft of austerity measures and other State interventions geared towards enhancing the efficiency and effectiveness of the government.
In a recent report tabled in Parliament, PSC accused Cabinet Secretaries of exceeding the number of advisers they are entitled to.
According to the report, at least 250 officers were appointed as personal staff in the Office of the Deputy President and as advisers to Cabinet Secretaries without competitive recruitment.
The Head of State of State in his address announced that the number of advisors in government shall, with immediate effect, be reduced by 50 per cent.
