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{
"id": 1268212,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1268212/?format=api",
"text_counter": 169,
"type": "speech",
"speaker_name": "North Mugirarango, UDA",
"speaker_title": "Hon. Joash Nyamoko",
"speaker": null,
"content": "The Bill seeks to give effect to Article 190(2) of the Constitution, as eloquently articulated by the Leader of the Majority Party. The Bill also seeks to actualise Article 209 of the Constitution by providing a uniform legislative framework and a mechanism on how the county governments are going to undertake those functions which have already been highlighted. Hon. Temporary Speaker, currently, levying of property rates in Kenya relies on the Rating Act, Cap.266, and the Rating Act Cap.267. These Acts, which were enacted in 1956 and 1964 respectively, are outdated and lack a clear legal framework to help the county governments to achieve optimal property rates collection as they are not aligned to the Constitution that we promulgated in 2010 and the devolved system of government. The county governments cannot realise their full potential because they base their collection of rates on these laws, which were passed in the 1960s. That is why it has become very important and prudent for us to re-look at this particular space. In 2018, the National Treasury, with the assistance of the World Bank, commissioned a study by Adam Smith International on Own Source of Revenue Potential and Tax-Guard Study in the Kenya County Governments. Among the key objectives of the study was to map out counties’ local revenue potential base. The study established that the county governments’ revenue potential ranged between Ksh55 billion and Ksh173 billion compared to the Kshs35 billion being collected today. The Ksh35 billion does not even fall within the bracket of the potential that we have of between Ksh55 billion and Ksh173 billion. When they were doing this study, they also determined that most of the revenues which were collected by the county governments, revenue collected from the properties and land rates, is not as attractive as what is usually collected from the parking fees and health facilities. Looking at this potential and the conclusions that were drawn out of the findings of the study, it means that if we implement the recommendations contained in the report on the study, we will facilitate the county governments across the country and even enable the national Government to collect more revenue for the development of the country. The Bill, therefore, seeks to repeal the Valuation of Rating Tax, Cap.266 and the Rating Act Cap.267, which I have indicated were enacted in the 1960s, and provide for a uniform legislative framework to regulate the national Government and the county governments on imposing rates and valuing of properties as contemplated in the Constitution. The Bill, too, seeks to provide for enhancement, certainty, uniformity and fairness in levying of property rates by the county governments. In other words, at the end of the day, we are going to have a single legislation that will regulate all the county governments and the national Government, unlike the case today where various county governments have come up with their own rating laws that are in most cases at variance with each other. Hon. Temporary Speaker, allow me to undertake a clause-by-clause analysis of the Bill so that the House may have a detailed understanding of how it is organised. As I indicated, the main objective is to have the guiding principles on the application of the Act and use of technology. Clause 3 of the Bill provides the objects and purpose of the Bill, number one of which is to give effect to Articles 191 and 209(3)(a) of the Constitution by providing for a uniform legislative framework. Number two is a mechanism on how the county governments shall undertake valuations for the rating and imposition of rates on rate-able properties. These will also provide an enhanced use of appropriate technology in undertaking the valuation for the rating, rating-related purposes, and also provide for the roles of the Chief Government Valuer in respect of collation of all valuation rolls prepared and deposited by the county governments. What we mean by this is that all the county governments will be expected to undertake or develop valuation rolls which will be posted to the Chief Government Valuer, who will be stationed at the national office. In other words, we will have one Chief Government 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."
}