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"id": 1015281,
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"type": "speech",
"speaker_name": "Kieni, JP",
"speaker_title": "Hon. Kanini Kega",
"speaker": {
"id": 1813,
"legal_name": "James Mathenge Kanini Kega",
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"content": "Members to note that the CRA has proposed fiscal effort to encourage counties to prudently use their resources. However, as you will note, what the Senate decided to pass did not include fiscal policy. Hon. Speaker, the Committee noted that the Senate’s resolutions had proposed that the basis will be as follows: 1. To ensure that no county receives less resources and there is no disruption of services in the counties, at the county level, all counties will receive the same resources as they received in the Financial Year 2019/2020. 2. To ensure there is predictability in resource allocation to counties commencing from the Financial Years 2020/2021 to 2024/2025, the formula shall apply on a basis of 50 per cent of Kshs316.5 billion and the remaining amount shall be applied to the formula as given in the annex which I have also provided. I do not want to go to the parameters of this formula but maybe to just highlight, the parameters of this formula are distributed as follows: 18 per cent on population; 17 per cent on health, 10 per cent on agriculture; 5 per cent on urban; 14 per cent on poverty; 8 per cent on land, which is capped at 7 per cent; and 20 per cent the basic share. As you have noted and as I alluded earlier, they removed the fiscal prudence, whether deliberately or inadvertently. These parameters will use the 2015/2016 Kenya Integrated Household Budget Survey (KIHBS) and the 2019 Population Census. That was a huge concern because the population that was used earlier on was that of 2009. In that case, just to give us a simple analogy, it is like when you are the current Member of Parliament and when you are referred to - they refer to the former Member of Parliament. So, we have insisted that the figures that should be used should be the current figures. As I conclude, the Committee made the following observations: 1. The Senate took too long to consider the recommendation of the CRA on the third basis for the revenue allocation among county governments. Indeed, CRA, as I had said earlier, submitted the recommendation for consideration on 30th April 2019. 2. The issue of the quantum figure estimated at Kshs370 billion does not have the force of law. The National Assembly will be guided by the available resources, national interest and other factors when deciding on the vertical sharing of the revenue between the two levels of Government. It is the business of this House to have that vertical division of revenue of resources."
}