National Council of Churches of Kenya

TRIBUNAL TO REVIEW THE TERMS AND CONDITIONS OF SERVICE FOR MEMBERS OF PARLIAMENT AND EMPLOYEES OF THE NATIONAL ASSEMBLY

BY THE
NATIONAL COUNCIL OF CHURCHES OF KENYA

PRESENTED BY
REV. CANON PETER KARANJA
GENERAL SECRETARY

ON

3rd APRIL 2009

AT

KENYATTA INTERNATIONAL CONFERENCE CENTRE

Preamble

Employment in any situation is a contractual agreement between an employer and an employee. The contract defines the work that the employee will undertake, and the remuneration they will receive in return. This contractual agreement must be mutually agreed upon by the employer and the employer. The employer will attach value to the work to be done while the employee will evaluate their worth. At the end of the day the two will converge and agree on the work to be done and the remuneration thereof.

The employer’s right is recognized and promoted in the Bible as is shown by the parable of Jesus recorded in Matthew 20: 1 – 15. Indeed, the Bible in this passage rebukes workers who attempt to amend their remuneration when the contract is under implementation.

On their part, employers are variously instructed to be caring and considerate towards their workers, and not to oppress them. The following scriptures attest to this:

Ephesians 6: 9 “And masters, treat your slaves (servants or workers) in the same way. Do not threaten them, since you know that he who is both their Master and yours is in heaven, and there is no favoritism with him.”

Colossians 4: 1 “Masters, provide your slaves (servants or workers) with what is right and fair, because you know that you also have a Master in heaven.”

It is against this background that we submit that Members of Parliament and holders of other constitutional offices including His Excellency the President, His Excellency the Vice President, the Right Honourable the Prime Minister, Cabinet Ministers, other Parliament related positions and all civil servants are employees of the Kenyan people. It is therefore the right and responsibility of all Kenyans to take interest and contribute towards the determination of the work to be done by these officers and also what they will earn as remuneration for their labour.

In our considered opinion it is thus an anomaly for Parliamentarians or any other public servants to set their own salaries, whether directly or through tribunals. A tribunal appointed by the National Assembly to review the terms and conditions of service of those who work and serve there is rooted in a fundamental conflict of interest. This tribunal can facilitate the correction of the present unjust system, if by recognizing this anomaly, it presents a credible report that reflects the truth position of the Kenyan people.

It is common knowledge that there has been a grossly lopsided system of remuneration in the Kenyan public service that to a large extent reflects the whims of the people in leadership and has often tended to favour those holding high offices at the expense of the bulk of government workers.

In our view, it is immoral for any country’s remuneration system to increase the salaries of some in an insensitive and selfish manner. We as a nation must determine to bring this injustice to an end, and this is an opportune moment to do so.

Historical Concerns
The primary concern for most Kenyans is that rather than being the epitome of leadership and democracy, Parliament has become the national cash-cow which politicians fight for an opportunity to milk. In the eyes of many Kenyans, Parliament has ceased to be a house of representatives where issues of concern to the people are discussed and resolved and has instead changed into a collection of selfish, greedy individuals hell-bent on enriching themselves even at the cost of the country.

Becoming a Member of Parliament has in essence become an extremely lucrative undertaking as it brings to the holder various benefits, which include:

1. A high salary for minimal work
2. Opportunity to be appointed to the Cabinet
3. Use of the position to influence business and other opportunities
4. Prestige
5. To some extent, immunity from prosecution and punishment for breaking the
   law

This has made campaigns to join Parliament so serious that violence and thuggery, bribery and corruption, have been used by candidates to join Parliament. Kenyans have indeed developed a culture where one wishes to get to Parliament through any means possible, whether these are lawful or not.

Reports in public circulation including the Kenya National Dialogue and Reconciliation Monitoring Project – Report on Status of Implementation indicate that in many constituencies, the illegal gangs that are terrorizing the people were formed and maintained by politicians who were vying for Parliamentary positions. This has made the war against crime difficult since the politicians supposedly use their influence over law enforcement agencies and agents to ensure that members of such groups are not prosecuted.

There is therefore no doubt that the cure to a huge part of the corruption and crime in the country will arise from reducing the lure of Parliament by rationalizing the benefits accruing from being a member of parliament.

Kenyans are crying for leadership in this Country. We must remove from the hire of membership to the National Assembly, the motivation of personal financial gain. We need leaders who consider service a privilege and who aspire to make Kenya a model/nation in democracy and prosperity and are willing to make sacrifices.

With regard to salaries and benefits, the following irregular practices have over time characterized parliamentary action and culture thus eroding the confidence of Kenyans:

1. MPs setting their own salaries
2. MPs setting up commissions and tribunals to review their salaries
3. MPs awarding themselves salaries and benefits that are neither proportionate with the salaries and benefits of other Kenyans nor realistic in view of the level of our country’s development and wealth
4. MPs blatantly refusing to pay tax on their benefits and allowances
5. MPs passing laws that exclude them from paying taxes, and arm-twisting the Finance Minister whenever he attempts to propose taxation for the MP’s benefits and allowances

This situation needs to be rectified to pave way for restoration of public confidence in Parliament and the entire government.

Proposed Way Forward
We propose broad principles to guide the basis of this tribunal’s recommendations in the context of wider concerns carried by all Kenyans as follows:-

1. Establishment of a Remuneration Commission
We propose that a Remuneration Commission that will be responsible for recommending remuneration for all public officers, including civil servants, constitutional office holders, elected leaders, the Executive, tribunals and commissions be established by the government.

This body will be independent and shall be embedded in the Constitution of Kenya. It will make recommendations on remuneration to the President and the Treasury. Parliament would make its input through presentation of memoranda to the Commission.

The Remuneration Commission would:

1. Establish a comprehensive job grading system for all public servants.
2. Define a rationalized salary structure based on identified job grades.
3. Develop a criteria for salary increments that will ensure that no segment will have an increase without due regard to all other segments
4. Ensure that the salary grading and increments take cognizance of and are based on: -

i. The Gross National Product
ii. Minimum Wage

5. In consultation with relevant organs, regularly review the tax regime.

No Kenyan from the President to all cadres within the tax bracket should be exempted from paying tax on salary, benefits and allowances.

2. Constitutional Office Holders
Holders of Constitutional Offices should have their salaries and benefits determined by the Remuneration Commission and they should all pay taxes within the same regime as all other Kenyans.

We agree with the proposal by the Commissioner-General of Kenya Revenue Authority, Michael Waweru, that persons seeking to run for parliamentary positions should be required to have tax clearance certificates to qualify. In all civilized democracies, a person who does not pay taxes is not allowed to determine how taxes are used.

3. Salary Scales for Members of Parliament
It may be unjust to reduce the salaries of Members of Parliament except in a situation where the proposed National Remuneration Commission adjusts downwards the salaries of all Constitutional Office holders and top civil servants some of who are earning much more than the Members of Parliament.

However, we propose

i) That the salaries of Members of Parliament be held at the current level
ii) That the tax law be applied uniformly on MPs remunerations as applicable to all Kenyans
iii) That the taxation be effected with the commencement of the financial year 2009/2010 and therefore the accruing government revenue be factored in the next year’s budget

We have heard arguments that current MPs never budgeted to pay taxes on the benefits. Our position is that an irregularity should not be perpetuated to ensure the comfort of the beneficiary.

5. Value for Money – working hours
To receive full pay, a Member of Parliament must spend a minimum of 24 hours per week in Parliament. This will address the problem of “technical appearances” where a member walks in then walks out after one minute yet they qualify to earn their full pay for that day.

For the periods when Parliament is on recess, the Members should be required to spend a minimum of 24 hours per week in their constituency offices to qualify for a salary that month. The constituents are the employers of the MP and therefore they should be allowed meaningful access to him or her. An exception would be when during recess, MPs are on official assignments related to the National Assembly. Members of Parliament should also be able to take annual leave from their work like all other Kenyans.

6. Cabinet Ministers
Members of Parliament should not be appointed as Cabinet Ministers. Such positions should be held by professionals who are proposed by the President then vetted by Parliament before appointment. If this is done, the Cabinet will be authentically accountable to Parliament. The current arrangement is riddled with conflict of interest between the Executive and the National Assembly making it impossible to fight corruption and undermining service delivery to the Kenyan public.

7. Salary Scales for Staff of the National Assembly
The staff of the National Assembly should be employed and remunerated at the same job categories as other civil servants. The National Assembly could also be accorded a corporation status that becomes the basis of staff remuneration which is consistent with public service remuneration.

8. Sitting Allowances
Members of Parliament should not be given any sitting allowances for being in the House or for serving in House Committees. Sitting in the house to make laws and serving in house instruments is a key ingredient of the MP’s job for which they are paid. To earn sitting allowances one should be adding value to organizations and institutions outside of their normal course of duty.

9. Gratuity
The gratuity earned by Members of Parliament should not be determined arbitrarily. Their service gratuity should be pegged at the same level of contractual government workers normally based on basic salary or as determined by the Remuneration Commission.

10. Grants
Members of Parliament should not receive any grants.

Conclusion
While the primary focus has been on the remuneration of Members of Parliament, all constitutional office holders are affected by the demands by Kenyans for sobriety in determination of their salaries and benefits and their taxation.

To bring sanity to the remuneration regime in all these areas, we reiterate our proposal for the establishment of a Remuneration Commission, protected by the constitution. Such a Commission would ensure a rationalized approach to the remuneration of all Civil Servants and holders of Constitutional Offices, endeavoring to reflect justice to all Kenyan Public Servants and the capacity of our resource base

We propose that some of the suggestions that may be outside the terms of reference of this tribunal be reviewed by the tribunal and communicated as recommendations to the appropriate organs for further action.

Thank you.

Rev. Dr. Charles Kibicho
CHAIRMAN

Rev. Canon Peter Karanja
GENERAL SECRETARY