How Uhuru fouled up MPs’ attempt to covertly use public funds to clear personal loans

President Uhuru Kenyatta has rejected an attempt by Members of Parliament to set up a special fund through which taxpayers’ money would be used to offset their loans and mortgages if they lose their seats.

The MPs had sought the establishment of a Special Fund from which their outstanding loans and mortgages would be serviced once they ceased being lawmakers.

In a memorandum to MPs, the President expressed reservations on aspects of the Public Finance Management Act, 2012, that provided that the Parliamentary Service Commission (PSC) may, with approval of the National Assembly, establish any other funds for the purpose of Parliament or a House of Parliament.

 Explaining his reservations, Uhuru noted that amending the law in the manner proposed in the Bill may lead to duplication of funds intended for Parliament since one already exists. He added that the provision in the Bill may also have an adverse impact on the principle of separation of powers between the Executive and the Legislature with regard to the management of public funds.

Several schemes And in a bid to align the new law with the presidential directive, the MPs have moved to set up several schemes to meet their objective under a proposed amendment to the Public Finance Management Act. The schemes will, however, be funded by MPs through contributions as opposed to the taxpayer as previously proposed.

Addressing the House on the matter during debate on the Presidential Memorandum, Leader of Majority Amos Kimunya said Parliament needed such regulation for MPs to benefit from the fund. “To fully accommodate his reservations, the President recommends that the Bill be amended to permit the establishment of other parliamentary funds, but limit the purpose of such Funds to cater for Parliamentary Mortgage, Parliamentary Car Loan and the Parliamentary Catering, which indeed was the intention of the Bill,” Speaker Justin Muturi said in his communication to the House.

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