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{
"id": 1545642,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1545642/?format=api",
"text_counter": 197,
"type": "speech",
"speaker_name": "Sen. Tabitha Mutinda",
"speaker_title": "",
"speaker": null,
"content": "because this is an issue that is before the Committee. We have been deliberating on it for amendment, so that more time is given as far as matters budget are concerned. That was just a mention because I know that most colleagues have raised this issue. These are matters that each and every committee has to look at and time has been a key factor. The BPS is a government policy document which sets out the broad strategies, priorities, policies and goals which guide the national and county governments as far as preparation of budgets are concerned. This is a very important process both at national and county levels. As Parliament, it is a mandate that we should undertake. It contains the assessment of the current state of the economy, including the macro focus as well as the Government’s priorities, current pillars, growth and strategy directions, the financial outlook which also concerns government revenues, expenditures, borrowing for the next financial year and over the medium term. We need to have a deeper discussion when it comes to the issue of borrowing. Today, we had the Cabinet Secretary for the National Treasury and Economic Planning and we touched on the issue of borrowing. We realized that as we support counties, some of the monies that we budget for during this process come from what has been borrowed. These loans bring about the issue of domestic and external borrowing. Mr. Temporary Speaker, Sir, it is a matter that we need to be privy to because then that borrowing plays a very big role in as far as these budgets are concerned. That is why, as a Committee, we emphasize on the timelines for the system that is supposed to maximize on the Own Source Revenue (OSR) collection by the county governments. As much as we support county increments, we should be able to push for more OSR at the county level. The proposed expenditure limits for the national Government includes those for Parliament, the Judiciary and the indicative transfers of county governments, as I earlier said, through the Division of Revenue, the fiscal responsibility principles and financial objectives over the medium term, which includes limits on the total debt. We could not have tabled this Report without engaging our stakeholders. At this point, allow me to also mention our stakeholders. I thank them for their massive submissions and our intense discussions starting with the Commission of Revenue Allocation (CRA), the Council of Governors (CoG) led by the good Governor for Wajir County, the Institute of Certified Public Accountants of Kenya (ICPAK), Bajeti Hub, CAF, the Institute of Public Finance, the HENNET, the Institute of Economic Affairs (IEA), Okoa Uchumi, the constitutional commissions, independent offices and members of the public; Mr. Kevin Rono, Mr. Peter Njoroge and Mr. Eliud Matindi. These are stakeholders that we walked the journey with in the different aspects and issues that we tackle in our committee. The theme for the 2025 BPS is: Consolidating Gains under the Bottom-up"
},
{
"id": 1545643,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1545643/?format=api",
"text_counter": 198,
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"speaker": null,
"content": "Economic Transformation Agenda"
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{
"id": 1545644,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1545644/?format=api",
"text_counter": 199,
"type": "speech",
"speaker_name": "Sen. Tabitha Mutinda",
"speaker_title": "",
"speaker": null,
"content": "(BETA) for Inclusive Green Growth. The PBS envisioned the global economic growth performance at 3.2 per cent in 2024 with projections of 3.3 per cent for this Financial Year 2025/2026. The economic growth is developing economies, which is projected to stabilise at 4.2 per cent in both 2024 and 2025. The National Treasury estimated the economy to grow by 4.6 per cent in 2024, down from 5.6 per cent in 2023, with projections of 5.3 per cent both in 2025 and 2026. The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."
},
{
"id": 1545645,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1545645/?format=api",
"text_counter": 200,
"type": "speech",
"speaker_name": "Sen. Tabitha Mutinda",
"speaker_title": "",
"speaker": null,
"content": "For the first half of Financial Year 2024/2025, revenue performance fell short of Kshs1.43 billion by Kshs1.07 billion as of December last year, with a collection of Kshs1.3 billion. This was majorly occasioned by underperformance of the ordinary revenue to a tune of Kshs93.3 billion. The 2025 PBS proposed several initiatives to improve and also maximise revenue collection, which include operationalisation of the national tax, Medium-Term Revenue Strategy (MTRS) of 2026/2027, strengthening tax administration, broadening the tax base, reducing tax expenditures, leveraging on technology to modernise tax processes and close revenue loopholes. Improving tax system efficiency and a focus on non-tax revenue that Ministries, Departments and Agencies (MDAs) can generate through public services. The PBS overall budget for Financial Year 2025/2026 is Ksh4.3 trillion, which is 9.8 per cent above the approved expenditure in Supplementary One for Financial Year 2024/2025. You will realise that the previous allocation for the division of revenue to the counties was Kshs387.7 from our last year’s proposal was around Kshs410 billion, which was occasioned by demonstrations that took place against the Finance Bill then. That prompted the allocation to the counties to be reduced to Kshs387.7 billion. The shareable revenue is expected to grow from a projected Kshs2.5 billion at the end of Financial Year 2024/2025 to Kshs2.8 billion for Financial Year 2025/2026. I listened to my good friend, Sen. Mungatana, when he talked about the increment as far as revenue is projected. The same should reciprocate when it comes to county allocations. What we have proposed, as a Committee, is an increase from Kshs387.7 billion to Kshs465 billion to the county governments. If I can mention how we came up with this particular figure, you will note that we have increments that affect county governments. One of those increments is the Housing Levy, which total to about Kshs4.1 billion. That is supposed to be taken care of by county governments. The enhanced contributions to the National Social Security Fund (NSSF) total to Kshs6 billion. Matching allocation to the County Aggregation and Industrial Parks (CAIPs) Project for 18 counties totals to Kshs11.8 billion. For our dear CHPs out there, their budget is Ksh3.23 billion. This is the responsibility of the counties. Annual wage increment, which is normally about 10 per cent, amounts to Kshs6.3 billion, which cuts across the 47 counties. Basic salary increment for doctors’ CBA for 2017 amounts to about Kshs3.5 billion. All that total to Kshs34.9 billion. These are some of the issues we raised last time when we increased the Division of Revenue figures. With the sums that I have just read out, they justify the increment of up to Kshs365 billion. It is further expected that sharing of equitable share among counties for the next financial year shall be used in the proposed fourth formula basis, which I know is a critical issue that we will highly participate in. In full recognition of the fiscal impact of the new formula from previous years, the Committee has provided an additional Kshs14 billion to cushion all counties from the transitional effects of the new basis. A figure of Kshs14 billion, Kshs34.9 billion, the previous amount of Kshs387.7 billion plus others will give us Ksh465 billion. As a Committee, we recommended that the county equitable share for this financial year should be Kshs465 billion while the national Government’s equitable share will be Kshs2.3 trillion. The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."
},
{
"id": 1545646,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1545646/?format=api",
"text_counter": 201,
"type": "speech",
"speaker_name": "Sen. Tabitha Mutinda",
"speaker_title": "",
"speaker": null,
"content": "Concerning the Equalisation Fund, as a Committee, we have gone further and asked the National Treasury to disburse the remaining Kshs10 billion. This money does not increase. It is money that was allocated. Some has been disbursed, but the balance is pending. These are issues that can come to a closure when the National Treasury allocates these particular budgets, so that we achieve what the Equalisation Fund was to meant for because it was aimed to touch on critical issues, one of them being health. We know that issues of health are so sensitive. As a Committee, we propose Equalisation Fund of Ksh10 billion to see if it meets its goals. Additional allocation to the counties is Kshs69.8 billion. Last year when I sat in the Mediation Committee on county additional allocations, we did not conclude because of the timelines. There is one critical issue where we had back and forth. I want to mention this to Sen. Mungatana. I heard him talk about the Cabinet Secretary for the National Treasury and Economic Planning. When he appeared before our Committee today, he categorically stated that he is not happy with the wrangles between the National Assembly and county governments. The Senate fully supports county governments as far as the issue of the Road Maintenance Levy Fund (RMLF) is concerned. However, today, the National Assembly scrapped off the RMLF completely. On our side, we have not scrapped it off in our Bill because these roles also belong to the counties. There is nothing wrong with them having funds. The funds for county headquarters have also been scrapped off by that Bill. As a Committee, we understand the need for counties to come to a closure as far as the issue of the five county headquarters is concerned, but you will find that there is back and forth. I agree that, as a House, we should also be part of the budget-making process. This should not just be the responsibility of the National Assembly alone. That is why we end up having back and forth. Who suffers? It is the mwananchi. There is a saying in Kiswahili language that fahali wawili wakipigana, nyasi ndizo huumia . I hope I have said it correctly. When it comes to these budgetary issues, funds meant for devolved functions should be left. We had to query a whopping Kshs29 billion for the health sector that has been transferred to the Ministry of Health directly. These are functions of county governments to improve different facilities. These are monies we should see being budgeted for all the medical staff. The legacy that should be left by the Ministry of Health is not beautiful buildings which are well-painted or well-structured. It should be the personnel. What is the point of getting into a very smart, well-equipped hospital? I wonder who knows when they will be sick and need to get to hospital. Is there a calendar or specific timeline? No one knows. The personnel are the most important team in this budgeting. We should be able to see that they are supported by their remunerations being paid on time. This to avert seeing the doctors and health workers on strike every week, including today. They will still approach the gates of Parliament. How can we be discussing billions of shillings yet the medical staff remunerations are still due or pending? We need to look at how much budget is needed? Also, we do have issues with the gratuities. The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."
},
{
"id": 1545647,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1545647/?format=api",
"text_counter": 202,
"type": "speech",
"speaker_name": "Sen. Tabitha Mutinda",
"speaker_title": "",
"speaker": null,
"content": "Where I sat today in the Committee on Health, we were looking at how much is needed to pay the Universal Health Coverage (UHC) workers. Remember, these workers were the ones who were on the front line during the time of COVID-19 pandemic, when you and me were told to lock ourselves in the house and keep distance to be safe. Nonetheless, they were bold enough to be on the front line to stand for this country. The budget that is needed to meet what they keep on carrying placards every day, it is just about Kshs4 billion. I am happy I have seen the budget that the Cabinet Secretary was able to state that medical practitioners 2017 CBA was agreed to. This money is budgeted for in this financial year. It is about Kshs1.7 billion. Subsequently, when it comes to the medical industry, there should not be a separation of this cadre of a medical worker or the other. They are all important and they play key roles in this country. Thus, when it comes to these budgets, it should be fair. Let the counties get what they need to. The issue of OSR, as I mentioned earlier, is one that the county governments should also speed up on. We want to have a uniform system that helps collect own source revenue and stop depending on the national Government. We are concerned. I know there was a time the President proposed a team to look at the audit questions as far as debt is concerned. Politics led the day when that proposal came. Certainly, I am sure as the Cabinet Secretary mentioned today, that the Office of the Auditor-General (OAG) will look into this. Kenyans will know the debt and how to reduce it so as to improve on our OSR. I encourage the governors and county governments that as much as the Senate fights for you for additional allocation, work on reducing your pending bills. It is so painful that we push for more funding to the counties, but the pending bills are increasing each and every year. What are we doing to Kenyans? The cry that is out there for Kenyans is the current situation of the economy because money is not moving. If these things cannot be sorted, then our people will continue crying. We look at the domestic borrowing versus the external borrowing. We are at 65 per cent domestic and 35 per cent borrowing from external. What are we doing to the private sector? I also noticed that even the Central Bank of Kenya (CBK) rates for the bank are not being fully implemented by all the banks. Where do we leave the private sector? We cannot all fit within the space of the Government sector. The private sector plays a very key role. Mr. Temporary Speaker, Sir, I appreciate my Committee Members led by my very good Chair, Sen. (Capt.) Ali Roba, Senior (Dr.) Boni Khalwale, Sen. Faki, Sen. Shakila, Sen. Okenyuri, Sen. Mariam Omar and Sen. Onyonka, because these are matters that we have deliberated on very highly as a committee. I also want to appreciate the secretariat led by Gitonga, Beverline, Lucy, Kioko and all the team that we worked very closely with to ensure we are able to give good report. With those many remarks, I beg to reply and request that the putting of the question be deferred to a later day pursuant to Standing Order No. 66 (3)."
},
{
"id": 1545648,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1545648/?format=api",
"text_counter": 203,
"type": "speech",
"speaker_name": "Sen. Abdul Haji",
"speaker_title": "The Temporary Speaker",
"speaker": null,
"content": " Very well. It is deferred."
},
{
"id": 1545649,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1545649/?format=api",
"text_counter": 204,
"type": "scene",
"speaker_name": "",
"speaker_title": "",
"speaker": null,
"content": "(Putting of the question on the Motion deferred)"
},
{
"id": 1545650,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1545650/?format=api",
"text_counter": 205,
"type": "speech",
"speaker_name": "Sen. Abdul Haji",
"speaker_title": "The Temporary Speaker",
"speaker": null,
"content": "The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."
},
{
"id": 1545651,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1545651/?format=api",
"text_counter": 206,
"type": "speech",
"speaker_name": "Sen. Abdul Haji",
"speaker_title": "The Temporary Speaker",
"speaker": null,
"content": "Next Order."
}
]
}