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"id": 1546062,
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"speaker": null,
"content": "MOTION"
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"id": 1546063,
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"content": "ADOPTION OF REPORTS ON AUDIT REPORTS OF VARIOUS MUNICIPALITIES FOR FY2023/2024"
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{
"id": 1546064,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1546064/?format=api",
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"type": "speech",
"speaker_name": "Sen. Kathuri",
"speaker_title": "The Deputy Speaker",
"speaker": {
"id": 13590,
"legal_name": "Murungi Kathuri",
"slug": "murungi-kathuri"
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"content": " The Chairperson, County Public Investment and Special Fund Committee (CPIC), you may proceed."
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{
"id": 1546065,
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"text_counter": 168,
"type": "speech",
"speaker_name": "Sen. Osotsi",
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"speaker": {
"id": 13588,
"legal_name": "Osotsi Godfrey Otieno",
"slug": "osotsi-godfrey-otieno"
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"content": "Thank you, Mr. Deputy Speaker, Sir. I beg to move- THAT, the Senate adopts the Reports of the Select Committee on County Public Investments and Special Funds on the consideration of the Audit Reports for the Financial Year 2023/2024 for Diani, Eldoret, Iten, Kapsabet, Kakamega, Kilifi, Kisii, Kinango, Kwale, Lamu, Lunga Lunga, Malindi, Mumias, Mwatate, Nyamira, Voi and Wote municipalities, laid on the Table of the Senate on Thursday, 27th March, 2025 and approves the recommendations of the Committee on the financial statements of the respective Municipalities for the Financial Year 2023/2024. Mr. Deputy Speaker, Sir, we have had a very rigorous three weeks considering various reports in line with Article 229 of the Constitution, so that we can beat the deadline of 31st March, 2025. It was not easy, but we have handled a significant number of reports for municipalities for Financial Year 2023/2024. First, I commend the Office of the Auditor-General for considering the financial statements of municipalities. It is now in the third year when the Auditor-General is looking at the statements of municipalities. A lot of donor funding is being put in these municipalities and even transfers from county governments. In the past, they were not audited, but the Auditor-General has done a commendable job to audit these municipalities. Mr. Deputy Speaker, Sir, the major problem with municipalities at the moment is the lack of independence of the management and the operations of these municipalities. In our examination of these audited reports, we found out that municipalities are still being run as a department of the county executive, which is contrary to the Urban Areas and Cities Act under Sections 12 and 20, which requires that municipalities must be autonomous in managerial, financial and operational autonomy. Some of the municipalities do not even have boards and municipal managers even though they have been gazetted. That was a common query in most of the municipalities. We also had a lot of challenges in terms of financial control and lack of budgets. You find that the funds for municipalities and the county executive have been commingled, which brings a lot of challenges. 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": 1546066,
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"text_counter": 169,
"type": "speech",
"speaker_name": "Sen. Osotsi",
"speaker_title": "",
"speaker": {
"id": 13588,
"legal_name": "Osotsi Godfrey Otieno",
"slug": "osotsi-godfrey-otieno"
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"content": "Mr. Deputy Speaker, Sir, as for the issue of even staffing, we find that most of the municipalities do not have staff of their own. They have staff who have been seconded from the county executive, which, again, is contrary to the provisions of the Urban Areas and Cities Act. Municipalities are also struggling with bookkeeping issues, accuracy and compliance to the International Public Sector Accounting Standards (IPSAS), leading to audit queries and raising concerns about the competence of finance managers. I also want to add to what the Chairperson of CPAC has said that it is high time that we took strict action against accounting officers and accountants who violate the Accountants Act. We also had challenges with late submission of documents. Most of the municipalities that appeared before us brought supporting documents at the point of appearing in the Senate. We have a very lengthy audit process, and one wonders why counties are not able to deliver the documents within the stipulated period in law for examination by the auditor, but when they appear before the Senate, they bring loads and loads of documents, knowing very well we do not have capacity to go through all of them. Moving forward, we have agreed as a Committee that we will invoke the provisions of Section 62(2) of the Public Audit Act that declares that to be an offence punishable by payment of a fine of Kshs5 million or imprisonment for three years or both. Mr. Deputy Speaker, Sir, because of time, allow me to quickly go through the issues that were common in all the counties. This is just because we have gone through the issues that were common in all the counties in terms of municipalities. One is lack of operational autonomy, which I have pointed out. There are issues with preparation and accuracy of financial statements and compliance with reporting standards. There are issues with asset management. Most municipalities do not have asset registers. That is a major risk in the management of assets. There are issues with budgetary control and performance, where you find that budgets do not balance or there are no budgets, or underfunding or underutilisation of budgets. The Committee made a number of resolutions contained in the Report. Because of time, I will not go through all of them. One fundamental resolution is that the House, after the passage of this Motion, should give the Committee time to go and conduct detailed inquiries into the reports and report back to the House. The Committee should also carry out inspection visits to the municipalities to examine some of the issues raised in the audit queries. I must commend the Office of the Auditor-General for thinking it right that it is important for municipalities to be audited. That, in a way, is going to enhance accountability for Own-Source Revenue, which most municipalities generate. Maybe that is the reason most county governments do not want to give autonomy to municipalities. I must also report with sadness that this House gave a charter to Eldoret City. As we speak, that charter has not been operationalised because the Municipal Manager proceeded to court. He said because Eldoret is now a city, he wanted to become a city manager. The Urban Areas and Cities Act is very clear. There is no transitional mechanism for a municipal board or manager to a city board or manager. The Act only provides that whenever a municipality becomes a city, a new city manager and board must be 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."
},
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"id": 1546067,
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"text_counter": 170,
"type": "speech",
"speaker_name": "Sen. Osotsi",
"speaker_title": "",
"speaker": {
"id": 13588,
"legal_name": "Osotsi Godfrey Otieno",
"slug": "osotsi-godfrey-otieno"
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"content": "appointed. We have, therefore, directed the Governor to immediately comply with the law and have a city manager and board for Eldoret City, so that the residents can enjoy the benefits of good governance. Because of time, allow me to request Sen. Tobiko, who is a member of the Committee, to second."
},
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"id": 1546068,
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"text_counter": 171,
"type": "speech",
"speaker_name": "Sen. Kathuri",
"speaker_title": "The Deputy Speaker",
"speaker": {
"id": 13590,
"legal_name": "Murungi Kathuri",
"slug": "murungi-kathuri"
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"content": " Sen. Peris Tobiko."
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"id": 1546069,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1546069/?format=api",
"text_counter": 172,
"type": "speech",
"speaker_name": "Sen. Tobiko",
"speaker_title": "",
"speaker": null,
"content": "Thank you, Hon. Deputy Speaker, Sir, for this opportunity. I rise to second the Motion as moved by the Chairman. I will not repeat much of what he has detailed on the Floor. Being a first-time member of the Committee, there is so much I have learnt from the audit reports on municipalities, water companies and referral hospitals in various counties. In particular, there is no autonomy in municipalities. There is lack of financial independence. Most municipalities still operate under the County Revenue Funds (CRFs). The personnel in most municipalities are seconded from the county executives. There is late presentation of documents after audit exit meetings."
},
{
"id": 1546070,
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"text_counter": 173,
"type": "scene",
"speaker_name": "",
"speaker_title": "",
"speaker": null,
"content": "[The Deputy Speaker (Sen. Kathuri) left the Chair]"
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"text_counter": 174,
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"speaker_name": "",
"speaker_title": "",
"speaker": null,
"content": "[The Temporary Speaker (Sen. Wakili Sigei) in the Chair]"
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