Loans shocker for Members of Parliament
Members of Parliament have been told to complete paying their mortgages and car loans by August 7, a day to the end of their term.
They are also to clear from their offices in Parliament and constituencies.
The lawmakers will however continue to enjoy medical cover until the end of the year, whether they are re-elected or not, according to a memo to senators seen by the Nation.
“Immediately upon completion of payment of their loans, the necessary discharge documents shall be processed,” Senate Clerk Jeremiah Nyegenye said in the memo.
This means if they do not finish servicing the loans, their cars and mortgages would still be charged to the banks and could be sold if they default on payments.
An auditor-general’s report shows that 89 MPs had taken loans by June last year.
Lawmakers who have served two or more terms will be entitled to a monthly pension of $1,000 (Sh100,000).
One term MPs will be paid their gratuity, which is 31 per cent of their annual basic salary, and a refund of their contributions without interest.
The next lot of MPs will get significantly less salaries than the current ones after the Salaries and Remuneration Commission announced new rates for State officers, from the President to Members of County Assembly.
An MP’s monthly pay has been fixed at Sh621,250 for the coming five years.
The lawmaker will get a maximum of Sh80,000 as sitting allowance for committee meetings (Sh128,000 for committee chairmen).