President Kibaki – who had just returned from Kampala where he had attended the country’s 50th Independence celebrations – said Kenya’s economy was unable to please the legislators.
The President said the amendment made of the Finance Bill 2012 to reward MPs handsomely would cripple the already ailing economy.
President Kibaki said the amendment was unconstitutional and untenable with the current economic state.
The move by the Head of State came just hours after the civil society led by an activists movement Kenyans On Twitter (KOT) held demonstrations in the city centre protesting the the send off perks.
If signed into law, the Bill would have seen each MP take home Ksh9.3 million as severance allowance.
However, the President assented to the amendments to the Elections Act 2011 to allow all political aspirants to have identified their political parties by January 4th, 2013.
In a statement sent from State House, the President argued the severance package would cause an unsustainable wage bill especially after the pay hike given to teachers, doctors and other civil servants.
However, Parliament can overturn the President’s decision if two-thirds majority of the sitting Parliamentarians vote for the bill during the parliamentary proceedings which will force the President to sign it into law.