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{
"id": 1570212,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1570212/?format=api",
"text_counter": 103,
"type": "speech",
"speaker_name": "Sen. Ali Roba",
"speaker_title": "",
"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": 1570213,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1570213/?format=api",
"text_counter": 104,
"type": "speech",
"speaker_name": "Sen. Ali Roba",
"speaker_title": "",
"speaker": null,
"content": "the CRA. The Committee engaged the National Treasury, the Commission on Revenue Allocation, the Kenya National Bureau of Statistics, the Council of Governors, the Institute of Certified Public Accountants of Kenya, Budgetyhub, the County Assembly of Bomet Budget Office on behalf of Mr. Bernard Rono, Stella Chemutai, and Nixon Kirui, the Budget Talk Global, the Institute of Public Finance, Achievers of Kenya, Coastal People Forum, and Mr. John Kangani. During the deliberations, the Committee made various observations. The Fourth Basis recommended by the CRA incorporated a new parameter called the stabilisation factor. According to the CRA, this factor was introduced to ensure that no county loses any money from what they are getting in the current Financial Year 2024/2025. However, it will be prudent to address transitional effect from one basis to another using scientifically generated deviation parameter. Mr. Speaker, Sir, that the data used to generate the income distance index, Gross County Product (GCP), is not directly derived from each county, but rather the Kenyan National Bureau of Statistics applies a top-down approach to determine each county's contribution to Gross Domestic Product (GDP). Further, the approach used by the CRA to determine the index is similar to the level of poverty gap in a particular county when compared to Nairobi City County. Additionally, using Nairobi City County as a reference point makes it difficult to assign an index to this reference that is specific to the county. Mr. Speaker, Sir, we have engaged these stakeholders and we have picked their input at various levels. The underlying issue the Committee faced was that when we convened for consultation in the presence of the Commission on Revenue Allocation (CRA) in Naivasha, the Committee was guided by the entire Senate and the attendees of that meeting. The Senate's guidance was based on two principles. The first principle is that no county should lose money from its current allocation. The second principle is that, any amount exceeding Kshs387.425 billion must be distributed so that each county gains marginally or equitably. In order for the Committee to arrive at a position that conforms to the Senate's agreed principles, we had to apply the third basis formulae of revenue sharing and convert it into an allocation factor to safeguard each county’s current share. Thus, Kshs387.425 billion was held as a factor for each county based on the third basis formulae of revenue allocation. Next, we had to establish parameters for distributing amounts exceeding Kshs387.425 billion. At this juncture, it is important to note that the National Assembly has already approved the Division of Revenue Act (DORA) at Kshs405 billion. Additionally, the Senate of the Republic of Kenya has also approved DORA at Kshs465 billion. It is very important for the nation to understand that the Senate arrived at the figure of Kshs465.425 billion based on non-discretionary expenditures arising from legislations that are passed by Parliament at the national level. These expenditures have been added to what counties have been receiving. These non-discretionary expenditures include Housing Levy deductions amounting to Kshs4.1 billion, enhanced contributions to the National Social Security"
},
{
"id": 1570214,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1570214/?format=api",
"text_counter": 105,
"type": "speech",
"speaker_name": "Sen. Ali Roba",
"speaker_title": "",
"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": 1570215,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1570215/?format=api",
"text_counter": 106,
"type": "speech",
"speaker_name": "Sen. Ali Roba",
"speaker_title": "",
"speaker": null,
"content": "Fund (NSSF) totalling Kshs6 billion, matching allocation to the County Aggregated Industrial Parks (CAIPS) totalling Kshs11.8 billion, matching allocation for Community Health Promoters (CHPs) totalling Kshs3.23 billion, the annual wage increment amounting to Kshs6.3 billion and the basic salary increment, as per the Doctor’s Collective Bargaining Agreement (CBA) No.217/21 execution of Return to Work Formula amounting to Kshs3.5 billion. This is coupled with the fact that the shareable revenue of the Government of Kenya has been gradually increasing. The last meaningful increase in county government revenue occurred in the Financial Year 2020/2021 when the last third basis formulae of revenue sharing was implemented. At that time, the shareable revenue increased from Kshs316 billion to Kshs370 billion. Thereafter, it is important to note that the shareable revenue only marginally increased. The following year, it remained at Kshs370 billion; these were the COVID-19 pandemic years. Thereafter, it increased from Kshs370 billion to Kshs385 billion and later to Kshs387.425 billion. The cumulative increase in shareable revenue for county governments over five years amounts to approximately Kshs70 billion, while the national Government’s shareable revenue increase over the past five years amounts to approximately Kshs770 billion or an increase of about 10 per cent. This is the wisdom that informed the Senate’s decision to pass the DORA at Kshs465 billion. The goal was not for Senators to argue over the formula or county allocations but to fight for a larger shareable revenue to address their concerns. Mr. Speaker, Sir, this decision was also shaped by consultations, as mentioned by my colleagues; Sen. Sifuna, Sen. Wambua and the Senate Majority Leader. We have held two consultation periods, guided by your leadership. The Committee, along with the Secretariat, has made itself available. The purpose of these meetings was to consult and address any thorny issues that might arise. Based on the experience of the third basis formulae of revenue sharing, the goal was to cushion the country from potential Senate disputes and ensure that all 47 counties are carried along together. This morning, in consultation with the 13 attendees, we arrived at a position regarding the smaller counties I mentioned: Elgeyo-Marakwet, Embu, Isiolo, Kirinyaga, Laikipia, Lamu, Nyamira, Samburu, Taita-Taveta, Tharaka-Nithi and Vihiga. These counties face challenges in remaining viable unless they receive some form of cushioning. The proposal that came in, which now is the property of the House, is that we set aside within the formula Kshs2 billion to be shared equally among these 11 counties in order to carry everybody along. The Senate Standing Committee on Finance and Budget has carried this responsibility on behalf of the entire Senate. While the Committee Members represent their respective counties, as the Chair, I could not allow them to advocate solely for their counties in situations that favor them. We must ensure that all 47 county governments are considered in the proposals we make. Similarly, this Senate should not be influenced by individual efforts to push agenda that favour specific counties. Instead, we must focus on how to collectively"
},
{
"id": 1570216,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1570216/?format=api",
"text_counter": 107,
"type": "speech",
"speaker_name": "Sen. Ali Roba",
"speaker_title": "",
"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": 1570217,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1570217/?format=api",
"text_counter": 108,
"type": "speech",
"speaker_name": "Sen. Ali Roba",
"speaker_title": "",
"speaker": null,
"content": "support all 47 counties, as it is our sworn responsibility as the Senate of the Republic of Kenya. This means we are collectively responsible for the welfare of all the 47 counties, while individually accountable for oversight and other mandates. As we engage, and as I move this Motion, it is important to inform my colleagues that during this morning's engagement, I listened to eight members of the Senate. Each Member spoke in favour of a position they believed would benefit their county. Some would ask whether we could we change certain variable’s number to another. They did not consider the reality that, as a Committee, once we have tabled this report, we no longer have the mandate to amend the figures in favour of any county, even in consultation? Rather, it is our prerogative, on behalf of the Senate, to ensure inclusivity and develop a formula that, while not perfect, remains fair. A truly perfect formula is unattainable. If that were the case, I would have advocated for 14 per cent based on poverty and 9 per cent based on geographical size, as Mandera County would have fallen within that bracket if such considerations were applied. However, to carry everybody along and avoid being short sighted on what benefits only my county or another, I have guided the honourable Senators who are Members of this Committee. They have listened, and I have prevailed upon them to understand the complexity and controversy surrounding this issue. It is important that even before this becomes the property of the House for the House to either accept and amend or decide what they will do with it. From the face value of our presentation, we should position and present ourselves as extremely fair in conformity with the guidance that we were given in Naivasha by the Senate."
},
{
"id": 1570218,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1570218/?format=api",
"text_counter": 109,
"type": "speech",
"speaker_name": "Sen. Ali Roba",
"speaker_title": "",
"speaker": null,
"content": "Mr. Speaker, Sir, as I conclude, I would like to report that both the principles that we were given as a guide in Naivasha of no county losing anything from what they are getting now--- Remember the controversy of the Third Basis of revenue sharing was largely because many counties were losing substantial amount of money. Counties are just like salaried people. Once you are given a certain amount of money, you learn to plan with that. A reduction will be extremely unfair because it is going to put counties in a spin. The onus is on the Senate to make sure that the guidance that we took is upheld by way of making sure no county loses anything from what they have been getting and the formula has taken care of that. Whatever is over and above Kshs387.425 billion and now from the amended perspective, which is Kshs399.425 billion, will cushion about 11 smaller counties. We believe that will further address that and every county will marginally or equitably benefit, while we also take care of smaller counties."
},
{
"id": 1570219,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1570219/?format=api",
"text_counter": 110,
"type": "speech",
"speaker_name": "Sen. Ali Roba",
"speaker_title": "",
"speaker": null,
"content": "Mr. Speaker, Sir, I beg to move and request Sen. (Dr.) Khalwale to second."
},
{
"id": 1570220,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1570220/?format=api",
"text_counter": 111,
"type": "speech",
"speaker_name": "Hon. Kingi",
"speaker_title": "The Speaker",
"speaker": null,
"content": " Sen. Boni, you may proceed to second."
},
{
"id": 1570221,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1570221/?format=api",
"text_counter": 112,
"type": "speech",
"speaker_name": "Sen. (Dr.) Khalwale",
"speaker_title": "",
"speaker": null,
"content": "Mr. Speaker, Sir, I rise to second this Motion as moved by the Chairperson of the Committee on Finance and Budget, the Senator for Mandera, who fortunately for us in this Senate, is a national party leader. Therefore, like many national party leaders, he has a global view, not just on the politics of the country, but also the need to carry all the people of Kenya along on a very sensitive issue like sharing the common wealth of the Republic of Kenya."
}
]
}