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"id": 1381387,
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"type": "speech",
"speaker_name": "Sen. Wakili Sigei",
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"content": "the Chairperson of the Committee, Sen. Osotsi, over 45 minutes to present this document. He laid the foundation why we are where we are and the suffering the people who are supposed to be the beneficiaries of the remittances have gone through. In all the recommendations that the Committee made, it is one thing that this House can help the people who have retired and their entitlements been retained by various county governments and other institutions that are supposed to remit these dues to benefit those people in their old age. Mr. Speaker, Sir, the figures as given is something we cannot take for granted. This is because at Paragraph 63, there is an additional note on the amounts due to the various institutions starting from Local Authority Pension (LAPTRUST) Trust, National Social Security Fund (NSSF) and LAP Fund. These are remittances that these institutions have not released for the benefit of those people. We are aware that upon retirement, an individual has no other source of income especially in their in old age. The affinity to have medical conditions that require constant attention is rampant. In the event that they are unable to get any resources, yet they had contributed, they would be subjected to conditions which they are not supposed to because of the inaction of these institutions. Among the several recommendations which I commend the Committee for, is the one that requires a first charge on the remittances that goes to the county governments. This recommendation is on page 28 where once the county government remits its allocation, the first charge must be laid out on these statutory deductions. The second proposed amendment is to the Public Finance Management (PFM) Act. It will ensure county governments confirm before any other payment is made that these remittances have been done. This will be the only way to enforce the proposals which the Committee is making. Secondly, the Controller of Budget (CoB) should ensure statutory deductions are made before monthly payroll payment requests by the county governments are approved. This is going to help us to manage these payments. How will this be done? It is by having a law that requires first charge on any remittances. In addition to that, before approval of any deductions or any payment is done, all the money is supposed to go through the Office of the CoB. Should the Kenya Revenue Authority (KRA) be given a role to enhance these remittances? The Committee should consider the role of KRA and the Retirement Benefits Authority Act. As such, these deductions will be automatic if KRA is involved. I laud the comments which were made that some county governments have entered into agreements with the Funds on how to remit these statutory deductions. Unfortunately, if these agreements are signed and not honoured, they will remain just agreements. What is the effect? The Committee recommended that additional interests and penalties will accrue as long as such payments are not made. I believe that if this House adopts this Report, we will support and help contributors who have suffered because of unremitted deductions. I commend the Committee on this Report. It will enhance the oversight role of this House. We should ensure that those who contribute benefit from their contributions The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard Services,Senate."
}