President Mwai Kibaki has declined to assent to the amendment of the Finance Bill (2012) that was passed by Parliament last Thursday.
The amendment would have awarded the lawmakers a Sh2 billion send-off package on January 15 next year when their term expires.
The President objected to the amendment on the grounds that it was first unconstitutional and secondly untenable in the prevailing economic circumstances in the country.
The MPs secretly added the amendment on Thursday night despite recent national strikes by doctors, lecturers and teachers over poor pay.
“Coming shortly after the increment of salaries for teachers and doctors, the severance pay for Parliamentarians would lead to an unsustainable wage bill at a time when the country requires massive resources to implement the new constitution and meet other competing demands in the economy,” a statement from the Presidential Press Service said.
Meanwhile, the Head of State has assented to the amendment in the electoral laws extending the period to January 4, 2013 during which Members of Parliament should have chosen the political party on which to seek nomination and contest a political seat in the forthcoming general elections.