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{
    "id": 1120373,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1120373/?format=api",
    "text_counter": 203,
    "type": "speech",
    "speaker_name": "Sen. Faki",
    "speaker_title": "",
    "speaker": {
        "id": 13211,
        "legal_name": "Mohamed Faki Mwinyihaji",
        "slug": "mohamed-faki-mwinyihaji-2"
    },
    "content": "In a nutshell, the Regulations are intended to be applied to provide guidance on the administration and management of the Equalization Fund. These Regulations were first brought to the Committee through the National Assembly by way of concurrence. However, the Committee declined to consider them because they had not been tabled before the Senate. Madam Deputy Speaker, before I delve into the content of the Regulations, allow me to give a brief background as to why the Regulations were published. The Regulations seek to give guidance on the administration management of the Equalization Fund, whose operations were halted by a court order issued on 5th November 2019, Petition No.291 of 2016. The court disbanded the Equalization Fund advisory board and halted any further expenditure from the Fund. Other orders issued by the court included that the Equalization Fund, being for the benefit of marginalized counties, can only be disbursed by the national Government through the respective and affected county governments, and in accordance with the recommendations made by the Commission on Revenue Allocation (CRA) as approved by Parliament. Two, the guidelines on the administration of the Equalization Fund Published on 13th March, 2015 in the Kenya Gazette were unconstitutional and null and void for violating Articles 1 (4), 2 (1), 6 (10), 174, 201, 2014, and 216 of the Constitution, and Sections 12 and 18 of the Public Finance Management Act. Madam Deputy Speaker, the National Treasury was given six months from the date of the judgment, and in consultation with all relevant stakeholders, to prepare an appropriate policy under statutory instruments on the administration of the Equalization Fund that is compliant with the recommendations made by CRA, as approved by Parliament. The objectives of the Equalization Fund and devolution are set out in the Constitution. It is because of these orders that the National Treasury had to go back to the drawing board and come up with the new regulations. It is important to note that since the court order, the funds have not been withdrawn and as such, there are stalled projects within the counties; uncompleted projects for which payments have not been effected to date. It will also be important to bring to the attention of Members that Article 204 (6) of the Constitution envisages that the Equalization Fund shall lapse after 20 years. It has a sunset clause of 20 years after the enactment of the Constitution, unless it is extended by legislation. In terms of identification of marginalized areas, the marginalization policy is the guiding policy. Upon the lapse of the first policy, the second generation marginalization policy for identifying marginalized areas was launched on 22nd June, 2018 by the CRA. The policy focuses on sub-locations distributed across the country in 34 counties, relative to the 14 counties recommended in the first policy. The policy uses information on access to safe water, school attendance, access to improved sanitation and electricity. The deprivation index was used to rank 7,131 areas mapped into 34 counties and 107 constituencies from the most deprived to the least"
}