Mbadi Addresses Councillor Payment Issue!

A significant development in Kenya’s public finance landscape emerged this morning, Thursday, August 21, 2025, as National Treasury Cabinet Secretary John Mbadi announced that there is no legal basis to implement a proposed one-off honorarium of Sh200,000 for former councillors who served less than four consecutive terms. The statement, delivered at 8:52 AM East Africa Time during a session with the Senate Committee on Labour and Social Welfare at Bunge Towers in Nairobi, has brought renewed attention to the long-standing issue of compensating ex-councillors. Mbadi explained that following a review of recommendations from a taskforce established to address the matter, the Attorney General concluded in an advisory dated May 8, 2023, that no legal foundation exists to support the payment. "We cannot proceed without a legal framework; the law must guide us," Mbadi said, addressing senators and a small group of reporters. The announcement has sparked a mix of frustration and debate, with implications for thousands of former local leaders.

The issue traces back to a 2018 Senate resolution urging the government to pay a one-off honorarium to former councillors, who served under the repealed Local Government Act before the 2010 Constitution established the County Assembly framework. The taskforce, formed to assess their welfare, recommended Sh200,000 for those with varied tenures, but the Attorney General’s advisory highlighted the absence of statutory backing, inconsistent pension principles, and potential fiscal risks. Mbadi’s stance, articulated amid a Sh10 trillion national debt and 5.5% inflation, underscores the government’s cautious approach to public expenditure. A shopkeeper in Kisumu, listening to the news while arranging goods, remarked, "These councillors deserve something, but the law is the law."

Public response has been a blend of sympathy and acceptance. In Mombasa, a fisherman mending nets caught the update on a community radio and said, "Many ex-councillors are struggling; this is disappointing." The proposal aimed to support approximately 11,919 former councillors who served less than four terms, a group excluded from formal pension schemes due to their part-time status and reliance on sitting allowances. Mbadi suggested alternative support through the Inua Jamii program, but this has not quelled calls for direct payment. A youth leader in Naivasha, organizing a community meeting, added, "The government should find a legal way; these are our elders." The ruling tests social equity.

The morning’s announcement drew diverse reactions. In Thika, a mother preparing lunch for her children said, "My uncle was a councillor; he hoped for this money." In Baringo, a herder tending cattle noted, "If there’s no law, what can we do?" Mbadi’s remarks before the Senate, chaired by West Pokot Senator Julius Murgor, emphasized that implementing the honorarium without legal grounding would contravene public finance management principles, exposing the state to audit and legal challenges. The taskforce’s 2022 report, reviewed over months, found no existing circular or act to justify the payment, a point Mbadi reiterated. A driver in Garissa, fueling his matatu, remarked, "This delay keeps hurting them; the law needs fixing." The decision highlights legal constraints.

As the day progressed, the story reached remote areas. In Marsabit, a community elder listening to a radio update said, "Our former leaders need help, but the rules must be followed." In Mombasa’s markets, a vendor packing fish asked, "Will Inua Jamii be enough for them?" The Attorney General’s 2023 advisory, based on a circular from the former Ministry of Local Government, limited benefits to those with 20 years of service, leaving shorter-term councillors ineligible. Mbadi proposed a forensic audit to verify the 328 potentially eligible cases, but no timeline was set. A shopkeeper in Homa Bay, preparing for the Devolution Conference, noted, "This could spark more demands from others." The ruling stirs broader implications.

The morning brought a reflective mood to offices and homes. In Eldoret, a public servant preparing a report said, "The law is clear, but it’s sad for these ex-councillors." In Kisumu, a father checking on his family added, "My neighbor served years; he feels let down." The Treasury’s tight fiscal space, with debt servicing consuming over 30% of revenue, underpins Mbadi’s caution, though critics argue for legislative action to address the gap. The Senate committee, tasked with oversight, plans further consultations, but progress remains uncertain. A community organizer in Turkana, planning a radio talk, remarked, "We need solutions, not just excuses." The announcement challenges policy innovation.

Experts see a legal bind. In Nairobi, a public finance analyst discussing over tea said, "Mbadi’s hands are tied without new legislation." The 2010 Constitution shifted local governance to counties, ending the councillor role, and no subsequent law has retroactively provided for their benefits, unlike MPs or MCAs. A vendor in Timau, closing his stall, said, "Let’s hope they don’t forget these leaders." The Inua Jamii program, offering cash transfers to the elderly, could mitigate some hardship, but it lacks the lump-sum appeal of the honorarium. A father in Nyahururu, walking home with his family, added, "The government should act fast for fairness." The ruling marks a policy dilemma.

The day saw continued engagement across the country. In Nakuru, a group at a market debated the news. "Can’t they make a new law?" one trader asked, sorting vegetables. In Nairobi’s cyber cafes, a student scrolling through updates noted, "Social media is split between law and compassion." The Treasury plans to collaborate with the Attorney General on a legal review, while ex-councillors’ associations prepare petitions. A youth leader in Kitale, organizing an event, reflected, "This needs a balance of justice and legality." As the issue unfolds, its resolution will shape public trust.