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"content": "(The Bill was read a First Time and"
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"content": "The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
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"content": "referred to the relevant committee)"
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"content": "Next Order."
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"content": "Second Reading"
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"content": "THE COUNTY GOVERNMENTS ADDITIONAL ALLOCATIONS BILL (Senate Bill No.19 of 2024)"
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"content": "Hon. Members, I hope you are attentive to this Bill. Can the Chairperson of the Budget and Appropriations Committee, Hon. Ndindi Nyoro, now move?"
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"type": "speech",
"speaker_name": "Kiharu, UDA",
"speaker_title": "Hon. Ndindi Nyoro",
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"content": " Hon. Temporary Speaker, I beg to move that the County Governments Additional Allocations Bill (Senate Bill No.19 of 2024) be now read a Second Time. I wish to bring forth to Members that, basically, what we are doing is in line with what you have been doing for the last few weeks. After the passage of the Appropriations Bill 2024 earlier in July, the process was running concurrently with the other side of raising revenue. Therefore, when we passed the Appropriations Bill of 2024, which became an Act, the hope was that money would be available through the revenue-raising measures that were then in place. Unfortunately, that was not possible due to what we all understand. Therefore, we came back here and made a major Supplementary Budget, which is now the main Budget in Kenya. That process was completed around a week-and-a-half ago. Therefore, that necessitated two things in regard to the relationship between the county governments and the National Government. There are two primary areas in which county governments draw money from the national Government. One is through equitable share, which, as the House knows, was also part of the rationalisation that happened the last two weeks. Across the two levels of government, everyone had to take a cut. The National Government took the bigger burden. The county governments also lost Ksh20 billion in the equitable share. Therefore, the figures that we appropriated indicated an equitable share; part of it, which is over Ksh33 billion, was part of the carry-overs from the last financial year. Therefore, the actual amount for this current year in equitable share is Ksh380 billion. That is one area. The second way county governments get money from the national Government is through what we are doing today—the County Governments Additional Allocations Bill (CGAA). This happens because of these reasons. This happens because the Government may direct resources to some specific devolved functions for implementation when there is an overarching agenda. Whereas we have county governments and national governments, devolved functions could be among the agenda of the national Government. For that reason, these monies follow what the Government wants to achieve nationally. The other area is found in the schedules. I am sure Members already have. Beyond the monies directed by the national Government from various departments, part of additional allocations to county governments comes from development partners. That is why Schedule Four of the County Governments Additional Allocations Act shows the amount of money going to county governments from development partners. Before I go into the specifics, which will take very little time, I underline that many times, we use development partners with the insinuation of money coming to us for free or given by anyone. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
},
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"id": 1464050,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1464050/?format=api",
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"speaker_name": "Kiharu, UDA",
"speaker_title": "Hon. Ndindi Nyoro",
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"content": "Development partners do not give Kenya grants. Most of these monies are loans. When we talk about development partners, this House must be very firm that this is the Government of Kenya's money. After all, a loan is a sovereign debt and forms part of public debt. The summarisation of when we see semantics and other big names is that this is Kenya's money. When you walk into a bank, and the bank advances you money, it ceases to be the bank's money. It becomes your money because you have given security or other modalities. Therefore, money becomes your property when lent to you. There is a reason I am saying this. Many times, you hear people saying this or that is a World Bank project or an Africa Development Bank (ADB) project, even on national Government- funded projects. There is no World Bank project or ADB project in Kenya. All these projects are the projects of the Government of Kenya. We repay these monies. We pay dearly, even with interest. I will do a summary. The current Government has an agenda to execute. One is around industrialisation bordering on agriculture. We are calling them county aggregation and industrial parks. This is an overarching Government agenda. However, as we know, agriculture is devolved. County governments own part of the land on which we may end up building these facilities. The national Government has some of the land. There is a collaboration. What is the collaboration? The collaboration in this area is when county governments, through their county assemblies, appropriate Ksh250 million to go into these industrial parks. The national Government will follow up with another Ksh250 million to build industrial parks, totalling approximately Ksh500,000,000 million. The national Government and county governments took and funded the first 18 batches in the last financial year. However, we did not release all the monies by the lapse of the financial year. There was a proposal in the Bill we are debating today. We were to pick another 12 batches to be funded in this financial year. The Budget and Appropriations Committee thought it was not prudent to do so. We cannot go ahead and appropriate money for new projects when we have projects funded halfway from the previous 18 batches. The wisdom of the Committee in the Report was that we finish the first 18 batches so that Kenyans can get utility out of them. An industry can only operate when it is built up and is 100 per cent functional. It would be imprudent for us to jump to start new ones just for the political correctness happening everywhere and end up not enjoying utility for a long time. The Committee recommends that we fund the first 18 batches to completion when money is available. However, Hon. Temporary Speaker, you and the Members can see that money is insufficient. Why do I say so? In the previous Appropriations Bill before the Supplementary Estimates, I had taken care of Ksh61.9 billion for conditional grants in relevant departments. Conditional allocations in the Appropriations Bill we are debating have come down to Ksh46.6 billion. Why? Rationalisation. On what basis? Revenue-raising measures could not be supported. We understood what happened. Part of the area in the report is a climb down. Industrial parks were to get approximately Ksh4 billion. It is Ksh2 billion in this Report. However, the money will go to the 18 batches that have already started. Second is the Universal Health Coverage programme. It has human capital and equipment. Through the relevant Ministry, the Government bought the equipment needed by Community Health Promoters. This is also a joint programme. All the healthcare promoters will get a stipend of Ksh5,000. Because this is an overarching Government agenda, the national Government is not throwing this burden to county governments alone. It will share the burden equally on a 50-50 basis. County governments will pay Ksh2,500 to healthcare promoters. The national Government The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
},
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"speaker_name": "Kiharu, UDA",
"speaker_title": "Hon. Ndindi Nyoro",
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"content": "will top up the other Ksh2,500. The essence is that this money is going to county governments to pay healthcare promoters rather than one person receiving two sets of salaries. That money is among the allocations we are debating today. However, this money has been slashed a little bit. We may need to top up in the ensuing Supplementary Estimates to cover the difference. This is a revolutionary thing. It covers over 103,000 Kenyan healthcare promoters in various localities. There is another thing. There is a conditional allocation to counties. It is for building headquarters of five county governments that did not have buildings in their district headquarters. Mostly, districts became counties. There are some county governments, like Tharaka Nithi, Isiolo, and three more, that never had buildings they could inherit as offices. At that time, in the wisdom of the government, the national Government was to pay approximately Ksh300 million to help these counties. It would be to the tune of Ksh1.8 billion to assist the five counties in getting headquarters. We have gone the long haul and provided around Ksh800 million so far. Some money was to be provided this financial year. Unfortunately, as members can see in the report, this has not been possible because of rationalisation. Some headquarters are at different levels of completion. We hope that will be funded as we proceed. There is an issue we have to look at as a House—fines and royalties. How do fines accrue? When somebody goes to courts in various counties and is fined by county laws, the monies should go to counties because you have contravened county laws. The fines collected by our Judiciary are supposed to go to specific counties, but over the years, this money has not reached the counties as intended. Even in the current financial year, it is only reflected on paper because when the National Treasury comes up with ceilings, each Government department tends to use up its entire allocation without setting aside any portion for the fines to be directed to the counties. As a result, this money remains in the Consolidated Fund. This should be streamlined. For instance, Kwale County is supposed to receive Ksh740 million in royalties from Base Titanium, but there have been challenges because these conditional and additional allocations are budgeted and domiciled in specific departments. For example, funds for health programmes are placed in the health departments. In this Appropriation Bill, the money for health promoters is domiciled in the relevant department. Regarding royalties, the wise thing would have been to domicile this money within mining but that is not provided for. This is because when departments are given ceilings, they first look inwards, in terms of their needs and there is scarcely any other room to accommodate any additional resources for our counties. We need to look into this because there is a gap here. Judging by previous years, this has resulted in the fines money only being accounted for on paper without actually benefiting the counties. Additionally, there are specific funds from development partners, each designated for particular purposes, such as health or climate issues. For example, the Kenya Informal Settlements Improvement Project (KISIP) deals with health programmes while Financing Locally Led Climate Action (FLLoCA) deals with climate issues, support and interventions. When these funds are provided, they come with conditions that must be adhered to. Much of these are concessional, and therefore, cheap but even when borrowing, some conditions must be followed. This forms part of the additional resources that we will appropriate through this Bill today. Finally, there is the County Government Additional Allocation (CGAA), which has included Ksh10 billion for the Roads Maintenance Levy Fund (RMLF) over the past three years. As we were doing the Appropriation Bill, the wisdom of this House was that the maintenance of roads through the Kenya Rural Roads Authority (KeRRA) should be a preserve of the constituency The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}
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