As President Kenyatta is preparing to leave office, the Treasury has allocated an extra Sh72 million for the year starting July next year and will increase to Sh79.2 million in the 2024 financial year to cater for the monthly pension of retired presidents from July next year.
A new budget vote labelled gratuity for retired presidents has been tabled in Parliament by the the Treasury, coinciding with the end of Mr Kenyatta’s second and last term in August.
The Treasury has also increased an allocation for the retired presidents’ pension from the current Sh34.4 million, which caters for former President Mwai Kibaki’s retirement benefits, to Sh42.42 million starting July next year.
This translates to an additional monthly pension of Sh666,700 that matches the amount that will be due to Mr Kenyatta in line with the Presidential Retirement Benefits Act, 2003.
A retired president’s once-a-month pension is set at 80 percent of his pensionable salary, which is equivalent to 60 percent of Sh1.44 million monthly pay offered to the sitting president. He also has other perks like fuel, house and entertainment allowances.
The Budget estimates that are before Parliament for approval indicate that Mr Kibaki’s pension and perks will stand at Sh34.43 million in the financial year ending June.
This translates to a monthly average payment of Sh2.86 million.
The current financial year marks the first time Mr Kibaki’s own pension is appearing in the Budget estimates given that it has since 2013 been lumped with that of former President Daniel arap Moi, who died on February 4, 2020.
Retired President Mwai Kibaki is set to become the best paid serving and retired public servant, the Treasury documents show.
The payment of Mr Moi’s pension was discontinued when he died.
At Sh2.86 million, Mr Kibaki’s average monthly payout is more than double President Kenyatta’s official salary of Sh1.44 million.