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{
"id": 1566172,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1566172/?format=api",
"text_counter": 222,
"type": "speech",
"speaker_name": "Sen. Olekina",
"speaker_title": "",
"speaker": null,
"content": "Non-discretional expenditures alone amounts to about Kshs31 billion. The amount of money that we proposed through mediation that was back and forth for the last Division of Revenue Bill was about Kshs405 billion. However, even after the mediation processes, we were pushed down to about Kshs387 billion. Let us just be realistic."
},
{
"id": 1566173,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1566173/?format=api",
"text_counter": 223,
"type": "speech",
"speaker_name": "Sen. Olekina",
"speaker_title": "",
"speaker": null,
"content": "We have had an agreement between our party, the Orange Democratic Movement (ODM) and the Kenya Kwanza Alliance that we are going to endeavour to ensure that we send at least Kshs450 billion to the counties. We had that agreement because we are alive to the fact that there are non-discretional expenditures that must be taken care of."
},
{
"id": 1566174,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1566174/?format=api",
"text_counter": 224,
"type": "speech",
"speaker_name": "Sen. Olekina",
"speaker_title": "",
"speaker": null,
"content": "If you deduct money from an employee as an employer, but you do not remit Kshs30 billion that you have deducted because you do not have enough money to pay your pending bills or introduce other developments, what will you be doing? Mr. Deputy Speaker, Sir, we are continuing to dig a deeper hole when it comes to our fiduciary responsibility. It is about time that we ask ourselves whether these debates and the position we take, as a Senate, is a position that we all understand. We are fighting for our counties to get money, so that they can pay all pending bills, make statutory deductions and remit them to allow the Government to continue raising funds. 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": 1566175,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1566175/?format=api",
"text_counter": 225,
"type": "speech",
"speaker_name": "Sen. Olekina",
"speaker_title": "",
"speaker": null,
"content": "Mr. Deputy Speaker, Sir, one of the biggest challenges that I see is that sometimes there is a huge disconnect. I strongly believe that the Committee on Finance and Budget of the National Assembly and the Senate Standing Committee on Finance and Budget should sit together and try to make sense of the Division of Revenue Act (DORA). Before it comes here, we waste time, debate and try to drill some sense into how money should be divided using the Constitution, but we seem to be getting nowhere. We are trying to drill wisdom to the Committee on Finance and Budget of the National Assembly. There is no way for them to propose to give counties Kshs405 billion yet expenditures like the Housing Levy, Social Health Insurance Fund (SHIF) and the National Social Security Fund (NSSF) takes a whopping Kshs31 billion. Are we really supporting these counties? Even if you take the Kshs387 billion plus the Kshs31 billion, it gives you Kshs418 billion. We need to be candid enough. If we are supporting devolution, we do so with facts. Let us put facts on the table and try to educate these people on the need to ensure that we maintain our fiduciary responsibility. Mr. Deputy Speaker, Sir, the reason many people blame the Controller of Budget (CoB) is because she does not read the Constitution and the laws. The other day we were arguing about money being sent to Nyamira County. Some of us were blaming the CoB for releasing money to two different assemblies yet we have a law that all of us must read and understand. If you read Sections 103 and 104 of the Public Finance Management (PFM) Act, it is clear. Section 103 talks of establishment of the County Treasury. Section 104 says that the Head of the County Treasury shall be the County Executive Committee Member (CECM) in charge of Finance and Economic Planning. Only The CECM in charge of Finance and Economic Planning can be sent requisitions to the CoB. We need to be clear here because sometimes we talk yet we do not have facts. Today, I want to demystify this issue of the Division of Revenue Bill. This Constitution, which all of us read on a daily basis is quite clear. Article 201 talks about a fiduciary responsibility. It says- “The following principles shall guide all aspects of public finance in the Republic— (a) there shall be openness and accountability, including public participation in financial matters; (b) the public finance system shall promote an equitable society, and in particular— (i) the burden of taxation shall be shared fairly; (ii) revenue raised nationally shall be shared equitably among national and county governments; and (iii) expenditure shall promote the equitable development of the country, including by making special provision for marginalised groups and areas” Mr. Deputy Speaker, Sir, in reference to the Equalisation Fund, already there is a mistake in this report. I hope that when a report is tabled, we go through it. The Equalisation Fund is not owed Kshs2.7 trillion, but it is owed Kshs27 billion. So, that should be corrected in this report. The Senate Committee on Finance and Budget is proposing that the money which should be set aside for the Equalisation Fund be Kshs9 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": 1566176,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1566176/?format=api",
"text_counter": 226,
"type": "speech",
"speaker_name": "Sen. Olekina",
"speaker_title": "",
"speaker": null,
"content": "billion, yet there is a debt of Kshs26 billion. How are we going to resolve this debt? Are we going to compound debt over debt? We need to be realistic. In fact, this is why I differ with the Committee on Finance and Budget. If we already owed Kshs26 billion, yet they have proposed is Kshs7 billion. There is an additional Kshs2 billion. So, Kshs26 billion plus Kshs7 billion is Kshs33 billion. If you add another Kshs2 billion it will be Kshs35 billion, yet there is a sunset clause on this Equalization Fund. The Constitution is clear in terms of the Equalization Fund. Article 204 talks about the Equalization Fund and it sets a sunset clause for 20 years, which are lapsing soon. So, the question that I have not heard the Senate Standing Committee on Finance and Budget responding to, or any of my colleagues, and I will seek some wise counsel from our colleague, Sen. Eddy, is what happens if we do not amend the Constitution to be able to extend the time of the Equalization Fund? The 20 years period is coming to an end? The money is yet to be released? Will this money be in a Fund which exists? These are questions that we must ask ourselves diligently and see where the problem is. How will we resolve this problem? On the issue of accountability, we are all complaining that projects are stalling. There are so many projects which the national Government has initiated. When it comes to the issue of Narok County, I want to be candid and clear on this. There is an airport which is the responsibility between both the national Government and the county government. I applaud my County Government of Narok and the Ministry of Roads and Transport because they have looked at issues to do with Article 187 of the Constitution in terms of a function which is for the national Government being undertaken by another level of government. They agreed that we need this service. If the national Government cannot afford it, we the people of Narok County, who we consider very rich, can afford to build the terminal. These projects must be completed. So, when we initiate projects, let us complete them. I want to call upon the Ministry of Roads and Transport and the Kenya Airports Authority (KAA) to be on the site. I was there two days ago and I will be there again on Friday. I will be a thorn in your flesh to make sure that these projects are completed. That is the only way we will make sense. Mr. Deputy Speaker, Sir, a couple of days ago, I listened to my colleague, Sen. M. Kajwang’. He raised a valid point by asking a very simple question. Why is it that when governors are exiting after serving a county for 10 yes, they launch a huge project which becomes a burden to the incoming governor? In Narok County, we had a similar problem with the hospital and the medical technical training college, which was officially opened by the President the other day. Save from that technical college, the hospital had to be taken over by the national Government because it was a project that could not be managed by the County Government of Narok. We had a similar case in Kakamega County where the Level 5 hospital, which was being built by the then Governor Oparanya, became a white elephant project that could not be completed. So, when it comes to the issue of accountability and financial management, all of us must be alive to the fact that there are limitations. There are things that we can do and there are things that we cannot do. 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": 1566177,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1566177/?format=api",
"text_counter": 227,
"type": "speech",
"speaker_name": "Sen. Olekina",
"speaker_title": "",
"speaker": null,
"content": "If we are not alive to the fact that there are limitations, we will be unfair to the current and the future generations. People will commit suicide because their pending bills have not been paid and yet there is nothing we are doing. We passed a Motion here, but implementation has become a challenge. So, when we are talking about amending the Constitution, it is because there are things that do not work, particularly financial management. There are a lot of companies that collect revenue on behalf of county governments. They are required by Section 109 of the Public Financial Management (PFM) Act and the Constitution to remit 100 per cent of the money that they collect to the County Revenue Fund for them to pay for their services. Mr. Deputy Speaker, Sir, whenever these companies bill for their services, they are not paid and this creates a problem. So, you want this person to raise money for you, but you do not want to pay him. Secondly, on sharable revenue, the law says that the National Assembly shall consider the most current audited financial statements. Guess what happens? Since we are uncouth, insincere and we do not subscribe to the principle of financial responsibility, we then play monkey games. We do not audit the current financial statements because we do not want to send more money to counties. We must come of age, so that we can be measured among other developing nations. Kenya is slowly developing. This is seen in the freedoms we have here; the ability for us to raise money. Therefore, we must live to that standard. Mr. Deputy Speaker, Sir, it will make sense to amend the Constitution to all these companies collecting revenue on behalf of county governments, deduct their agreed share and remit the balance to counties. If that is done, more money will reach to counties. Currently, you have to send 100 per cent of the money collected in accordance to the provisions of the PFM Act, Section 109 and Article 207 of the Constitution of Kenya. It is a pity that after you have sent all collected money to a county, you now go and beg the county governor to pay for your services. This demoralizes you to the point where you do not even disclose how much money you have been able to collect. In fact, Article 207 of the Constitution mirrors Section 109 of the PFM Act. In conclusion, I want to reiterate the fact that as a House, all of us must read this report. Secondly, we must always have a sense of occasion. All of us must debate on facts to be able to guide this nation. We must come out and say that whatever we are debating is what our good committee has undertaken. We should not always deviate. There is always urge to deviate and talk about current affairs and regional politics, but it does not make sense. What will make sense, is if all of us understand the report being submitted by the Committee. The distinguished Senators sat down and burnt the midnight oil to be able to demystify the proposals from the National Assembly. It would only be better for us if we can read them. After reading them and having a conversation with the Members of that Committee, I firmly believe that the only way that devolution will work is if we send the Kshs450 billion that we agreed between ODM and Kenya Kwanza. In the worst-case scenario, we send money that can take care of the all expenditures. 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": 1566178,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1566178/?format=api",
"text_counter": 228,
"type": "speech",
"speaker_name": "Sen. Olekina",
"speaker_title": "",
"speaker": null,
"content": "Thirdly, we also must make sure that we resolve this quagmire; this confusion. We should stop dilly dallying on the matter of the Equalization Fund, the Kshs26 billion, if we had an additional Kshs7 billion. I do not even support, my good friend, Sen. Eddy Oketch by saying he wants Kshs9 billion. If we cannot raise Kshs26 billion, if we are given the Kshs7 billion, it is good enough, but that Kshs7 billion should go and support and raise these communities. When you continue accumulating debt over debt, it does not help. Finally, Mr. Deputy Speaker, Sir---"
},
{
"id": 1566179,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1566179/?format=api",
"text_counter": 229,
"type": "speech",
"speaker_name": "Sen. Kathuri",
"speaker_title": "The Deputy Speaker",
"speaker": null,
"content": " Sen. Olekina, your neighbour, Sen. Eddy Oketch wants to inform you."
},
{
"id": 1566180,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1566180/?format=api",
"text_counter": 230,
"type": "speech",
"speaker_name": "Sen. Olekina",
"speaker_title": "",
"speaker": null,
"content": "Mr. Deputy Speaker, Sir, I will be more than happy to be informed."
},
{
"id": 1566181,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1566181/?format=api",
"text_counter": 231,
"type": "speech",
"speaker_name": "Sen. Kathuri",
"speaker_title": "The Deputy Speaker",
"speaker": null,
"content": " Proceed Sen Eddy Oketch."
}
]
}