Ex-Cabinet Secretaries (CS) who were dismissed by President William Ruto will receive millions in gratuity due to the ranking of the offices they held.
The dismissal of the 21 CSs and Attorney General Justin Muturi by Ruto on July 11, 2024, will have a cost implication of taxpayers when it comes to seeing them off.
This is because State officers of such status are guided by regulations of the Salaries and Remuneration Commission (SRC) that spell out that they should get a gratuity of 31% of their basic salary for every year worked, with the amount subjected to 30% taxation.
In the first year in office between November 2022 and June 2023, the basic pay for each CS and the AG was Ksh554,400 for a period of 8 months.
This means that the gratuity for that period amounts to Ksh1.37 million subjected to taxation of 30% which translates to Ksh962,000 for the first 8 months.
Ex-CSs to Receive Gratuity After Dismissal
In the second financial year between July 2023 and June 2023, the state officials enjoyed a pay rise following a gazette by the SRC that rose the basic pay from Ksh554, 000 to Ksh574,000.
Also Read: Goodbye Ruto: Ex-CSs Share Exit Messages After Being Fired
This means that the gratuity which is subject to taxation for a period of 12 months is Ksh1.49 million after taking off Ksh640,000 of tax in the gross pay.
The dismissed officials to this effect will receive an amount of Ksh2.45 million, meaning that Ksh54 million will be spent in total as gratuity for the 22 former state appointees.
Hower, CSs who may be lucky by being retained by President Ruto will not receive the gratuity.
President Ruto in an address to the nation on Thursday, dismissed his Cabinet and AG Justin Muturi, noting that only Prime Cabinet Secretary (PCS) & Foreign Affairs CS Musalia Mudavadi was spared.
Also Read: President William Ruto Dissolves Cabinet
Following the dismissal, State House has since removed all dismissed members of the Cabinet from its Website, with only President Ruto, Deputy President Rigathi Gachagua, Mudavadi and the secretary to the Cabinet Mercy Kiiru Wanjau retained.
Cabinet Dissolved
Ruto in his speech highlighted that the dismissal of the Cabinet would allow him to engage in consultations across different sectors, political formations and other Kenyans both in public and private sectors, with the aim of setting up a broad-based government.
“I will immediately engage in extensive consultations across different sectors and political formations, with the aim of setting up a broad-based government that will assist me in accelerating and expediting the necessary, urgent and irreversible, implementation of radical programs to deal with the burden of debt, raising domestic resources, expanding job opportunities, eliminate wastage and unnecessary duplication of a multiplicity of government agencies and slay the dragon of corruption consequently making the government lean, inexpensive, effective and efficient,” said Ruto.
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