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"content": "Otherwise, it would mean that, in the first instance, we never intended the 14 counties to benefit from the equitable share. Madam Temporary Speaker, on the issue of increase in debt finance, in the same breath we are saying there is a decrease in the Gross Domestic Product (GDP). According to my evaluation, if there is an increase in debt, then the output should be higher. As a result, our GDP should also have grown. There is a mismatch between the two and that needs to be followed up. I concur with Sen. Mutula Kilonzo Jnr. in terms of inflation and growth in Equitable Revenue Share Allocation for 2018/19 and its implication. If the counties have been given a 4 per cent increase and the inflation is at 7.1 per cent, that means the counties cannot give the same services to the people. They will give much less, notwithstanding the fact that out of the Kshs302 billion that they were entitled to, some have received as low as 33 percent and the financial year is almost over. The last time we contacted the Treasury, there were some counties that had received 33 percent. If this money is not disbursed we will see the implication. The other amendment that this Senate should consider is that the interest incurred by counties as a result of the national Treasury not releasing funds on time, should be charged to the national Treasury. This is because if counties were entitled to a certain amount of money and they do not receive it on time, it forces them to borrow. As a result, they get punished by paying the cost of financing from the small funds. This is unfair and given that the Senate exists to protect counties, this is an amendment that this honourable House needs to consider. Madam Temporary Speaker, another issue is about additional conditional grants by counties, under Paragraph 7. There is a section on national agriculture and rural inclusive projects to which Kshs2.9 billion is allocated. My opinion is that the pastoralist communities have not been covered. Since livestock is under the Ministry of Agriculture, Livestock and Fisheries, my fear is that livestock benefits are no longer there. I speak on behalf of the all the pastoralist communities. The other issue is the Kenya National Devolution Support Programme, which is for capacity building. There is Kshs2.3 billion and it lists certain things in terms of strengthening public finance and human resource. On the same, there is Level Two which remains the same. What is the difference between Level One and Level Two? In addition, in terms of capacity building, why is there no section where counties’ capacities are built, so that they can generate revenue? This also impacts on the sustainability of county governments. The intention was to ensure that counties are supported initially, and with time, they become self-sustainable, so that they can generate enough revenue to run their affairs. Madam Temporary Speaker, the other issue is about sustainability of revenue allocation. There is need to have a lot of investment in terms of building capacity for the counties. This is by having a digitalized way of revenue collection. However, some digital platforms can be misused. There should be a digital platform that has strong financial controls and security, so that nobody can hack the system. In addition to the gaps in the Budget that were mentioned by Sen. Mutula Kilonzo Jnr. there was a Collective Bargaining Agreement (CBA) signed between the The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate."
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