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{
    "id": 1225981,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1225981/?format=api",
    "text_counter": 167,
    "type": "speech",
    "speaker_name": "Kiharu, UDA",
    "speaker_title": "Hon. Ndindi Nyoro",
    "speaker": null,
    "content": "That is why the Senate has already been able to consider what we are considering today, and they will be very integral in considering the County Allocation of Revenue Bill. What are the kind of figures that we are considering? The Budget we are talking about, as we did in the BPS last week, is approximately Ksh3.6 trillion. That is the global figure. Out of the Ksh3.6 trillion, Kenya seeks Ksh2.1 trillion as the money that will be running the national Government. Those monies will be running the National Treasury in so far as recurrent and development votes are concerned, which is Ksh2.1 trillion. The second highest allocation in so far as the BPS is concerned – and we have also given the summary in this Bill – the second highest from the national Government is what we call the Consolidated Fund Services (CFS). Some of these things, when I get an opportunity like this, I repeat them so that they cease to be jargon and they become issues that we can freely discuss. The CFS is the monies that we spend in paying the interest rates of the monies that we have borrowed, servicing our national debt both domestic and foreign, especially with regard to interest. It is the same CFS that has got pensions in it, and the money that we give our commissions, and other such very important obligations. The third allocation is what we are discussing today within the Division of Revenue Bill. This is because on the vertical allocation, we are giving our counties the normal allocation of Ksh385 billion, out of the Ksh3.6 trillion. This is an increment of Ksh15 billion over and above the Ksh370 billion that the counties were to receive last year. In addition, it is important that I mention to this House that those are not the only funds that our counties will receive. We will also be coming to this House with another Bill called the Additional Revenue that we will give to our counties. This is where we include the conditional grants both from the national Government and from external foreign counter-funds. The entire conditional grant in so far as this year is concerned is just around Ksh44 billion. Within those monies, there is a Ksh4.7 billion of which we are giving to every county Ksh100 million for the construction of industrial parks. This is a project that has been agreed upon between the President and the governors, where the national Government will chip in and the counties will meet us in some way so that we are able to establish industrial centres and parks within our counties. Cumulatively, if you add Ksh385 billion and Ksh44 billion, then we are talking about monies that add up to nearly Ksh430 billion. As far as the law is concerned, how do we arrive at the amount of money that we actually allocate vertically to our counties? It is very clear that counties are entitled to 15 per cent of the revenues that have been submitted by the Auditor-General to this House, debated and passed by this House. The last financials that were passed by this House are for the FY2019/20. Therefore, we are considering revenues of around Ksh1.6 trillion. The money that we are giving our counties vertically account for around 23.3 per cent, which is over and above the threshold of 15 per cent. I mentioned there before that this is in addition to the other conditional grants that our counties receive. We got information from our brothers and sisters from the Senate that the counties were to receive ordinary remittances from the national Government to a tune of Ksh407 billion. We faulted our other House because of consideration and basis. The basis in terms of the laws that we use is the last audited financial statements. Senate was basing their figures of Ksh407 billion on the projected revenue of this financial year. That has its pitfalls because you cannot budget issues of money on projections, especially when you cast the figure in stone, then you cannot change it. Once we consider the figure we are considering today, it can only be fulfilled. Therefore, it is important that we base such important figures on reality and fact. I also want to bring to the attention of this House, especially the Members who were there before, that you must have noted that there is money for maintenance of roads - the Road Maintenance Levy Fund. Last term during our first three years, some of those monies were coming to what is now the Kenya Rural Roads Authority (KeRRA) in our regions. This is the 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."
}