Efforts by the Institute of Certified Public Accountants of Kenya (ICPAK) to secure a lucrative retirement package for auditors general have been thwarted by Members of Parliament. The ambitious proposal, which sought substantial financial and non-financial benefits for retired auditors general, was rejected by the National Assembly’s Finance Committee, chaired by Molo MP Kuria Kimani, citing the country’s current economic constraints.
The Proposed Perks
ICPAK’s proposal included a monthly pension of 70% of the auditor general’s last monthly salary, equating to approximately Ksh 660,000. This would have amounted to an annual payout of over Ksh 8 million for a retired auditor general. Additionally, the institute suggested a lump sum payment equivalent to one year’s salary for each term served upon retirement.
Other suggested perks included:
- A 3,000cc four-wheel drive vehicle, replaceable every four years.
- A fuel allowance of 15% of their last monthly salary.
- Full medical and hospital cover, inclusive of local and overseas treatment for the auditor general and their spouse.
- Diplomatic passports for the retiree and their spouse.
Further benefits sought by ICPAK included a range of personal and security staff, such as a driver, personal assistant, gardener, housekeeper, and two armed security guards. They also requested VIP airport lounge access and maintenance expenses for vehicles.
Grounds for Rejection
The Finance Committee ruled that the proposal was unsustainable given Kenya’s financial position. The committee noted that implementing these changes would have significant fiscal implications at a time when the government is grappling with mounting public debt and pressing economic challenges.
“The proposal expands the scope of the bill and imposes financial burdens that cannot be accommodated in the current economic climate,” read part of the committee’s report. While the committee’s recommendations could be overturned through a plenary vote in Parliament, such instances are rare.
Former Auditor General’s Plight
The push for these benefits was partially inspired by the plight of Edward Ouko, the first auditor general under Kenya’s 2010 Constitution. Ouko, who served from August 2011 to August 2019, has previously expressed frustration about the lack of post-retirement support for the role.
Ouko lamented to MPs that upon his retirement, he only received a one-time gratuity payment. He revealed that he was left without a pension, medical cover, or personal security despite the demanding and high-profile nature of the job. According to him, the role left little room for personal economic activities, compounding his financial challenges after retirement.
His predicament highlights a broader debate about the treatment of senior public servants after their tenure. Ouko’s security detail was withdrawn immediately upon retirement, forcing him to personally cater to his healthcare and safety needs.
Balancing Compensation and Public Interest
While ICPAK’s proposal was framed as an effort to dignify the office of the auditor general, the extensive nature of the requested benefits raised eyebrows among MPs and the public. Critics argue that such perks would set a precedent for other public offices to demand similar privileges, further burdening taxpayers.
Proponents of the proposal, however, maintain that the auditor general plays a critical role in promoting accountability and transparency in government spending. They argue that adequate retirement benefits would not only recognize the sacrifices made by holders of the office but also safeguard their independence during their tenure.
Conclusion
As Kenya navigates economic recovery, the debate over how to fairly compensate senior public officers without straining public resources remains contentious. While the Finance Committee’s decision signals a pragmatic approach to fiscal management, it also leaves unresolved questions about how best to acknowledge the unique challenges faced by high-ranking officials such as the auditor general.
