Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 1001001,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1001001/?format=api",
    "text_counter": 234,
    "type": "speech",
    "speaker_name": "Amb. Ukur Yatani",
    "speaker_title": "The Cabinet Secretary, National Treasury and Planning",
    "speaker": null,
    "content": "In the Financial Year 2020/2021, beneficiary counties have been allocated Kshs6.8 billion under the Equalisation Fund. I am aware that there are disbursement arrears and I wish to give an assurance that future allocations will be enhanced to make up for the shortfalls. In a High Court ruling of November 2019, the guidelines on administration of the Equalisation Fund were declared unconstitutional, null and void. Effectively, the Fund’s Advisory Board was disbanded and all operations halted, including payments for on-going projects. The ruling directed the National Treasury to develop a new Equalisation Fund statutory instrument. In compliance with this ruling, a new draft statutory instrument for the fund has been developed and is ready for gazettement and tabling in Parliament. I am also aware of the existence of a 2019 Private Member’s Bill on the Equalisation Fund, which was passed by the National Assembly and is currently before the Senate. In this context, I wish to propose to Hon. Members to initiate a process of harmonisation of efforts to achieve sustainable administration of this Fund. The Constitution requires the two levels of Government to conduct their mutual relations based on consultation and considerations, and to respect the functional and institutional integrity of Government at other levels. The objective is to achieve whole Government approach to provide synergies and common service delivery solutions. Towards this end, the Government will leverage on the intergovernmental framework for the implementation of national Government programmes and projects at the counties formulated in 2019 to harmonise implementation of plans such as the Big Four Agenda as well as policies between the two levels of government, including planning and budgeting. This is part of efforts to achieve an all-government approach to development. Hon. Speaker, the rest of my Statement is on tax measures for the Financial Year 2020/2021 Budget contained in the Finance Bill, 2020, which I submitted to this House in April 2020 in line with the requirements of the Public Finance Management Act, 2012. Further, I will highlight measures on Custom Duty as agreed at the regional level during the East African Community Pre- Budget Consultations meeting for the Financial Year 2020/2021. These measures are expected to generate about Kshs38.9 billion in tax revenue. Manufacturing is a major pillar in the Big Four Agenda where the Government aims to increase the contribution of the sector to GDP from about 8 per cent to 15 per cent by 2022. In this regard, I have proposed, at the regional level, measures aimed at promoting local manufacturing and also measures to ensure that locally manufactured products are competitive. The Customs Duty measures that have been agreed upon at the regional level, in accordance with the East African Community practice, shall be effective from 1st July 2020. Hon. Speaker, I wish to highlight a few of the measures that have direct impact on Kenyan manufacturers. Our metal and allied sector continues to face stiff competition from imported iron and steel products. In order to protect the sector, the rate of Import Duty of 35 per cent with the corresponding specific rates on a wide range of these products has been maintained for another year. Kenya has sufficient capacity to produce paper and paper board products. In order to protect manufacturers of these products from cheap imported products, we have maintained the Import Duty rate at 25 per cent for another one year. Kenya has the capacity to manufacture baby diapers. However, the inputs used in manufacturing these products attract Import Duty. In order to support manufacturing of the products locally, all inputs for manufacturing of baby diapers will be imported Duty-free under the East African Community Duty Remission Scheme. In addition, to promote local production of new clothing and apparels, including fashion and design, inputs used in the textile and apparel sector will be imported Duty-free under the scheme. 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."
}