BIG LOSS

Lawmakers who suddenly lose their seats in election petitions face a rough financial ride into ordinary citizenship, the Saturday Nation reveals.

A former MP who spoke to the Saturday Nation on Friday — the day that Mr Dick Wathika became the fifth MP to lose his seat in the current Parliament — said the sudden loss of income can be “quite messy”.

Mr Wathika joins Mr Chirau Ali Mwakwere (Matuga), Mr Omingo Magara (South Mugirango), Mr George Thuo (Juja) and Mr Joel Onyancha (Bomachoge) on the list of petition casualties.

Mr Isaac Njuguna, the head of Investment at Zimele, a financial consulting firm, said “unless MPs consider their five-year term as temporary jobs then they’d be in for a rude shock”.

With Parliament’s recent disclosure that dozens of MPs took home less than Sh10,000 a month from a salary of more than Sh1 million and that more than 80 take home less than Sh100,000, the financial blow for those kicked out can be telling.

“Banks normally look at MPs’ payslips and indeed the payslips look very healthy,” said Mr Muriuki Karue. “So they are ready to dish out loans.”

“Add that to the average of Sh200,000 in mortgage …it can be hectic if you just lose your seat,” said Mr Karue, a former Ol Kalou MP and the architect of the Constituency Development Fund.

The former MP said the take home pay for an average member of Parliament was usually Sh150,000, despite the huge income.

Parliament gives MPs a mortgage of up to Sh8 million each, payable in less than 50 months.

“If you lose your seat midway with such a mortgage, Parliament will take the house. It’s just like a bank,” said Mr Karue.

The monthly salary of an MP is Sh200,000, plus allowances running up to Sh800,000 a month – enough to build and equip two classrooms in a rural primary school.

These mouth-watering perks are in the form of car maintenance allowance (Sh75,000), entertainment (Sh60,000), house (Sh70,000), responsibility (Sh30,000) and constituency allowance (Sh50,000).

Add to these Sh366,000 transport allowance and the daily Sh10,000 for MPs who belong to committees for one to realise the financial shock that awaits an ousted MP once outside the precincts of the august House.

However, all of them get to keep the high-end fuel-guzzlers which they get for free through a Sh3.3 million grant as soon as they enter Parliament.

As a former assistant minister for Public Works, Mr Dick Wathika not only loses Sh100,000 in ministerial allowance, but also gives up the government-fuelled car and security.

The clout of controlling the Sh180 million disbursed to constituencies in the current budget also disappeared as the Makadara MP was shown the door.

Zimele’s Mr Njuguna contends that with such huge incomes, the MPs have to be “smart” not to end up begging in towns.

The financial consultant said MPs who lost their seats would have to adapt to a lower lifestyle.

“The initial impact should force such a person to adjust their budgets downwards, to the bare minimum,” said Mr Njuguna.

He said that, as any other person who suddenly lands big money, the MPs must have taken on board extra commitment, such that when the money taps are turned off, they are left holding nothing.