Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 1400506,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1400506/?format=api",
    "text_counter": 194,
    "type": "speech",
    "speaker_name": "Sen. Cherarkey",
    "speaker_title": "",
    "speaker": {
        "id": 13217,
        "legal_name": "Cherarkey K Samson",
        "slug": "cherarkey-k-samson"
    },
    "content": "If you allow a factory to be established, for example, in Chemilil-Chemase Ward in my County of Nandi, and you are doing around Kshs1 billion, it can hire up to 2,000 engineers, labourers and loaders. So, the value that will come will be much more than the tax that you pay. So, I think we need to look at Clause 7. I know that the Senate Majority Leader is following and listening. We should not allow counties to do more because we have seen what they do when we pass the Finance Bill. We have the Finance Act, which also affects counties. At the moment, we are trying to enhance accountability. There is a proposal to reduce the time period of doing financial statements by county governments and other entities to be within one month, as opposed to three months as provided by the Public Finance Management (PFM) Act. This includes even amending it in accordance with the International Public Sector Accounting Standards (IPSAS), which should be changed from cash to accrual basis. On the issue of payments of rates, as a Member of the CPAC, we need to be careful in terms of payments because counties take advantage. Can you believe that one county had almost 100 commercial bank accounts? Some of them even deposited money from the World Bank given as conditional grants. Under the PFM Act, it is clear that you must create a special purpose account. However, you will find counties opening 17 or 20 commercial bank accounts without following the PFM Act. That is happening. Allow me to use Nandi because it is my county. In the last financial year, we received money from the Kenya Urban Support Programme (KUSP). We received millions of shillings. The CECM for Finance, in consultation with the Governor, decided to open a fixed deposit account, so that they earn interest. That is violating the requirement to open special purpose accounts. We need to tell counties how they should go about payment of rates. The issue of pay bill is another elephant in the room. We must be careful about automation of revenue systems, use of M-pesa and cash payments. I remember there was a certain county, but I cannot recall which financial year it was. The county offices were about 100 metres to the bank, but they used to lose Kshs96,000 when going to deposit money in the bank. I agree with Members that we must be careful. We do not need to introduce other taxes and levies. We must agree on how to pay them. We must also agree that the designated revenue receiver for a county has to transmit money to the county treasury. It is important so that this process is not abused. We should also figure out remissions or remedies when you pay more or less. The second and final point is on discount. It needs to be fair and we should do due diligent. Discounts are only given based on assessment. You do not just give people discount without looking at their history, credit worthiness and business performance. It does not make sense to give out for the sake of it. Madam Temporary Speaker, I heard one of my colleagues talking about corruption and waivers. Sometimes people are given waivers because they want to 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 and AudioServices, Senate."
}