The Secrets of High Flying MPs

Extravagant lifestyles, the allure of extramarital affairs and the quest to live to public expectations drain most Kenyan parliamentarians’ salaries, leaving them in perpetual financial crises.

Beneath the dark suits, flashy lifestyles and fuel guzzlers, most of our parliamentarians are a distressed lot wallowing in financial burdens.

Multiple interviews with current and former MPs, their personal assistants and financial analysts reveal why the legislators have often increased their salaries while resisting attempts to tax their allowances. A majority of them now find themselves in awkward positions following Kenya Revenue Authority’s (KRA) firm decision to tax their allowances and backdate the same to September last year.

On average, each of the MPs owes the taxman Sh1.9 million in backdated taxes, besides the fact their entire pay will this month be subjected to taxation.

Previously, ordinary MP’s tax amounted to about Sh50,000 as only the Sh200,000 basic salary was subjected to taxation.

But under the new arrangement, the taxman will retain up to Sh260,000 of the Sh851,000 gross salary, according to calculations by Nithi MP Kareke Mbiuki.

Trouble for new parliamentarians begins soon after the swearing in where most find the sudden thrust into money and limelight too tempting to resist the life of affluence.

Most newcomers find the Sh15m mortgage offered by the Parliamentary Service Commission too tempting to resist. Beneficiaries end up paying Sh400,000 to service the mortgage.

Outside Continental House where their offices are located, car manufacturing companies pitch tent showcasing sleek cars to cash in on the new millionaires.

The deal is sweetened by the provision of a Sh3.3 million car loan. "They will give you a car as long as you are an MP," said a PA who asked not to be named.

Palatial houses

With palatial houses and driving big cars, some of them are lured into exclusive golf and members’ only clubs.

Former Kilome MP Kalembe Ndile confirms that he almost fell for a similar ‘trap’ in search of life’s luxuries.

"Someone wanted to introduce me to a golf club and when I enquired, the golf set cost Sh340,000 and that did not make sense to me. I declined," said Ndile.

He also claims that the lure for extramarital affairs has eaten into the salaries of some MPs.

"I know an MP who has four sidekicks many who insist on being bought a house or rented an apartment in an upmarket area," said Ndile.

During holidays, several MPs also prefer to spend in exorbitant hotels and resorts abroad.

"Saa hio unasikia mtu anakuuliza ‘Ndile unaenda holiday wapi?’ Mimi naenda Mauritius. Mwingine anaenda Bangkok. The furthest I can take my family is Mombasa because all beaches are similar," added the ex-MP.

Some legislators also claim they cannot reside in cheap resorts during holidays.

Kisauni MP Hassan Joho confirms that several of his colleagues have zero salaries due to the many commitments.

"Many took the House mortgage, loans and we have fees to pay thus many of us have zero shillings due to these commitments," he noted.

But Joho quickly defends his colleagues against claims of imprudent financial management, saying that a huge chunk of MPs’ pay goes to taking care of the needs of their constituents.

"When your constituents visit your home in Nairobi their demands are quite high: harambees, weddings and burials, among others," said Joho.

In a telephone interview, Mbiuki said he had taken the mortgage and is required to pay Sh400,000 per month.

Left in debt

"I have planned my finances in such a way that I will finish paying the mortgage in August next year. Now, if they take a further Sh210,000 then it will mean that I have to scale down the money I pay to about Sh150,000. That will mean I will be left in debts," said Mbiuki, protesting KRA’s move.

Another MP from Rift Valley said he could not resist the temptation to take the two loans because he needed a house in Nairobi and a vehicle.

"It is tempting and you cannot resist when it is your first time getting such privileges," said the MP who sought anonymity to avoid being ridiculed.

According to the Akiwumi taskforce that reviewed MPs’ salaries, the salary slips of 29 MPs reflected net payments of Sh10,000 and below while another 81 MPs had a net of less than Sh100,000. The report was tabled in Parliament last year in June.

But it is not the lure of quick riches that land Kenyan MPs in problems only. In the book The Politics of Betrayal, former Member of Parliament, Joe Khamisi, gives a peek into the weird world of our legislators.

The book paints a vivid picture of the dirty lifestyles of Kenyan leaders, which are hidden from the public eye.

The revelation of Kenyan MP’s sexual escapades is shocking. The book reveals how on several occasions, the drainage system of Continental House, which houses MPs’ offices, is blocked by used condoms.

"This is not out of blues but to be honest, it has happened and happens. In fact, you people (the Press) report all the time but because of legal reasons, you can’t name names. It is true," said an MP.

Many a times the public is given stories of unnamed MPs flying young ladies to exclusive and expensive places like Zanzibar and Dubai for holiday and shopping.

"Where do you think the money comes from? It is from our salaries and especially for those who have no other businesses to supplement their earnings," says the legislator.

A month ago, a Cabinet minister from Nyanza flew a young woman to an expensive hotel in Zanzibar for sexual escapades but the deal went awry after she declined his advances. The vocal minister abandoned the woman in Zanzibar.

An MP from the Meru region has been forced to sell a house he built for his father as one of the austerity measures in order to remain afloat.

Kenyan MPs take home a monthly income of Sh851,000 and have always paid Sh53,000 as tax.

Rongai MP Luka Kigen says the perception that the MPs earn big money is just an illusion because some actually take nothing home at the end of the month because of commitments.

"When you get to Parliament, everyone wants to take advantage of the loans which are given at very competitive interest rates and no one is assured of coming back to Parliament," he said.

Repaying loans

He said most MPs buy houses in Westlands, Runda, Karen and other posh areas they consider befit their status.

Kigen says he does not know of any MP who is not repaying a house loan in the current Parliament.

"When one is elected an MP, the social standing in the society goes high and so the big spending that come with it," he says.

"Most of us who have school going children ensure that they go to the best private schools where you pay dearly," he says.

He however says it is all about planning and financial prudence of an individual. Kenyans have sarcastically appealed to the government to train MPs in prudent financial management skills immediately they are sworn in.

But Mars Group Chief Executive Mwalimu Mati has scoffed at the proposal. "That is hilarious but it’s not an option. If they can’t manage their finances, then it means they cannot manage public finances and they can be easily compromised," said Mati.

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