Former councillors who served the country between 1963 and 2013 will have to continue waiting for their Sh2.6 billion one-off honorarium pension payment. This is because the National Treasury has yet to allocate funds for the honorarium and monthly pension for 11,919 former councillors.
While appearing before the Senate plenary yesterday, National Treasury Cabinet Secretary John Mbadi stated that there was no structured formula for paying the former councillors, as most of them did not receive a salary but rather allowances that varied across different regions during their time in service.
“Let me state categorically that it is not in my interest to withhold payments to former councillors, but we must do so within the confines of the law. My understanding is that the taskforce report is not binding; we need a legal framework in place to facilitate their payment,” said Mbadi.
Senate Deputy Speaker Kathuri Murungi (Meru) pressed Mbadi to explain the delay in implementing a Senate resolution for the payment of former councillors, despite the National Treasury having pledged to factor their remuneration into the budget for the 2022/2023 financial year.
“What we are trying to resolve is the implementation of the Senate’s resolution on the matter. We had determined that the former councillors do not have any other forum to address their grievances. You need to set aside the Attorney General’s opinion and honour what the Senate has approved,” Murungi told Mbadi.
Senator Boni Khalwale (Kakamega) questioned whether Mbadi was implying that the Attorney General had the power to veto a decision made by the Senate, arguing that such a move was unacceptable since the resolution had been passed by the entire House after thorough deliberation.
“Mbadi is an experienced legislator who knows very well that Parliament does not act in vain. Former councillors from Uasin Gishu, Nandi, and Kakamega counties have visited me and informed me that President William Ruto had previously promised to ensure they receive their dues,” said Khalwale.
The National Treasury and the Ministry of Labour had prepared a Cabinet memorandum in April 2023 for submission to the Cabinet regarding the one-off honorarium payment for former councillors who served between 1963 and 2013.
The then National Treasury Cabinet Secretary, Prof Njuguna Ndung’u, had stated that the recommendation to implement the Senate resolution on paying former councillors was made during the administration of former President Uhuru Kenyatta.
“Accordingly, the National Treasury, in conjunction with the Ministry of Labour, has prepared a Cabinet memorandum for transmittal to the Cabinet. Subject to the Cabinet’s decision, the National Treasury will factor in the Sh2.6 billion payment in the 2023/2024 financial year budget,” Ndung’u said at the time.
The former Cabinet Secretary indicated that the payment comprised Sh2.3 billion as gratuity for 11,919 former councillors who served for fewer than four consecutive terms and Sh218 million for 328 councillors who served for four or more continuous terms.
However, Senator Ledama ole Kina (Narok) questioned whether Ndung’u had committed to paying the former councillors’ long-standing dues without consulting the Attorney General. “Are you telling this House that Prof Ndung’u pledged to pay the former councillors without first consulting the Attorney General?” Ole Kina asked.
In response, Mbadi maintained that the Senate must provide a legal framework to ensure the councillors are paid. “We need a legal framework to facilitate the gratuity payments to the former councillors. I personally know many of them, and they deserve to be treated fairly,” said Mbadi. The National Treasury CS further informed the House that an alternative arrangement was being considered, which would involve enrolling the former councillors in the Inua Jamii programme and collaborating with the State Department of Social Protection to determine how many have already been included in the scheme.
“I must state that I am yet to see any provision from the taskforce recommending payment for former councillors. While I acknowledge that my predecessor might have made some commitments, the responsibility now falls on me,” said Mbadi.
Senate Speaker Amason Kingi affirmed that there was a clear willingness from both the President and the National Treasury to pay the former councillors. He referred the matter to the Senate Labour, Senate Finance, and Senate Legal Affairs Committees for joint deliberation. Kingi directed the three Senate Committees to work alongside the National Treasury and the Attorney General to develop a legal framework that would enable the former councillors to receive their dues within 60 days, adding that an earlier resolution would be preferable.
