ODM Leader Raila Odinga and Wiper's Kalonzo Musyoka are among the casualties of the adjusted budget policy meant to respond to the coronavirus pandemic.
Setback for Raila, Kalonzo as Sh1.5 billion retirement money is cancelled due to coronavirus
Mudavadi was also to enjoy the lucrative perks
The two leaders were set to enjoy lucrative packages in the Sh1.5 billion fund set aside for the retired Prime Minister, Vice Presidents, and other high ranking state officials.
The 2019/2020 financial budget had set aside the funds under the Deputy President and Designated State Officers Act which was enacted in 2015 but barred Odinga and Musyoka from accessing funds until their retirement from active politics.
The requirement for beneficiaries to retire from active politics was quashed after the 2018 handshake between Odinga and President Uhuru Kenyatta.
After the handshake, Odinga was caught in a dispute with Treasury officials over the overlap of some of his retirements benefits with the benefits he gets in his current role as AU Ambassador for Infrastructure.
Odinga’s office is reported to have asked for cash equivalent for some of the perks that are already due to him on account of his role at the AU.
For example, he is entitled to be allocated bodyguards as a former Prime Minister and as an AU special envoy. Treasury officials say they are not allowed to give cash equivalence as that would amount to double allocation.
ANC Party Leader Musalia Mudavadi , who is also a former Vice President, would also have been allowed to access retirement perks for the first time this year alongside Musyoka and Odinga.
Treasury officials said the fund was dropped in the Supplementary Budget policy as it was not urgent.
The Supplemnentary budget seeks to adjust government spending after the coronavirus pandemic which is expected to introduce a Sh100 billion reduction in revenue anticipated in the 2019/2020 financial year.
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