MPs Ordered To Refund Sh1.2B Awarded As House Allowance

The High Court has ordered Members of Parliament (MPs) to refund Ksh 1.2 billion that they unlawfully awarded themselves as house allowance in the year 2018.

The Salaries and Remuneration Commission (SRC) and activist Okiya Omtatah Okoiti had challenged the Ksh 250,000 house allowance that the 416 MPs awarded themselves.

Justices Weldon Korir, Pauline Nyamweya and John Mativo unanimously ruled that SRC acted within its mandate by directing Clerks of Parliament not to pay the allowance which did not interfere with the constitution independence of parliament and PSC.

The Clerk of the Senate and National Assembly have since been directed to recover in full from the salaries and allowances of each MP the entire money paid to them as accommodation.

Omtatah in his argument stated that the PSC, without the knowledge and approval of the SRC, secretly resolved to pay a monthly house allowance of Ksh 250,000 to each of the 418 MPs backdated to August 2018. Further, that it paid backdated house allowances of Ksh 2.25 million in April 2018 to each MP.

Omtatah also stated that the said payment will cost taxpayers over Ksh 1.2 billion annually.

He further contended that the payment is a double benefit as house allowance is already included by SRC in MPs’ gross pay noting that MPs are entitled to a mortgage of Ksh 20 million per term to cater for their housing needs.