MP earning Sh. 28,000 as rest of salary is eaten by loans

A Member of Parliament is so debt ridden that he only pockets a small fraction of his salary as the rest is deducted by banks to repay loans. The MP earning a fraction of his monthly pay is Lamu West MP Stanley Muiruri Muthama.

Court papers show that his monthly salary as at August 2021 was at Sh. 28,000 due to deductions for loans advanced by a sacco.

On a normal day, he would be earning Sh. 621,250, plus a number of allowances, such as sitting at the House and Committees and travel, and mortgage.

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Muthama is currently facing arrest for failing to pay a Sh. 10.9 million debt that he accrued seven years ago. The debt was part of a business transaction involving his trading company known as Stansha Limited.

The MP has been sued by Alice Cheruiyot who is the director of Saunett Enterprises. Incidentally, this is not the first time that he is facing financial troubles. Three years ago, Muthama was fighting a Sh. 487 million tax evasion case in Eldoret.

Cheruiyot told the Milimani Commercial Court deputy registrar that Muthama has breached an agreement that required him to be making a monthly installment of Sh. 750,000 until the debt is settled.

“Muthama and his company, Stansha Ltd, have persistently breached the consent (agreement). They defaulted to pay Sh. 1,550,000 before September 30, 2021, but only remitted Sh. 750,000 and issued post-dated cheques. They have failed to pay a sum of Sh. 750,000 that was due on April 1, 2022,” she told the court.

Muthama and Cheruiyot’s agreement was drawn on September 30, 2021. It provides that in default of any single installment, the entire balance will fall due and a warrant of arrest against Muthama will automatically be issued.