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{
    "id": 1406030,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1406030/?format=api",
    "text_counter": 358,
    "type": "speech",
    "speaker_name": "Sen. Cheruiyot",
    "speaker_title": "The Senate Majority Leader",
    "speaker": {
        "id": 13165,
        "legal_name": "Aaron Kipkirui Cheruiyot",
        "slug": "aaron-cheruiyot"
    },
    "content": "The Division of Revenue Bill, in accordance to Article 203 of the Constitution, demands that we have at least 15 per cent of the most recently audited accounts approved by the National Assembly. There has been conversations around how to increase this, the latest one being in the National Dialogue Committee (NADCO) exercise that yours truly participated in, which raised this to 20 per cent. That Bill is still before our Justice, Legal Affairs and Human Rights Committee. I do not see the Chairperson of that Committee. They would have updated us how far they are with that clause. The projected revenue for the Financial Year 2024/2025, which is the next financial year, is Kshs2.948 trillion. I do not need to repeat my comments on budgeting in the pie, which is a budgeting practice of having a pie in the sky and projecting a revenue that you know very well the chances of hitting it, are very remote. Nonetheless, that being the case, we will still have that conversation. One of the challenges that we have out of these projections is that the National Treasury continues to struggle even on the figure that they devote to the counties. This is because disbursement of these resources is a challenge since we have projected figures that are over and above that which we can raise. Therefore, throughout the financial year, you are delayed in your disbursements and that affects the operations in our various county governments. In the Bill, it is proposed at Kshs391.7 billion, which represents 13.3 per cent of the total revenue. The proposed county government's equitable share is 24.9 per cent of the most recent audited accounts, which is 2020/2021. I must congratulate the National Assembly. Previously, it used to take a bit longer. There were times when we would do division of revenue with audited statements of about five or six years behind. However, as it is today, there are only two financial years away. That is very good industry on the side of the National Assembly. We must celebrate them for that. The county equitable share being proposed is to increase by 1.5 per cent from the baseline of Kshs385 billion. Remember the conversation about Kshs385 billion and what has been said about that. I wish colleagues will take time to listen and follow through this debate, because this is a conversation that you have throughout the financial year. Your citizens will be asking how we arrived at this figure, what was your voice was and whether you agreed with the figure that was proposed or what your thoughts about it were. Mr. Temporary Speaker, Sir, if there is a Bill that Members need to take time to listen, understand and appreciate, it is the Annual Division of Revenue Bill. Further, this Bill provides for an allocation to the Equalization Fund for Financial Year 2024/2025 of Kshs7.8 billion, which is 0.5 per cent of the constitutional set threshold in the Financial Year 2020/2021 as per Article 204 of our Constitution. It is worth noting that during the consideration of 2024 Budget Policy Statement (BPS) approved by this House, the Senate made some key financial recommendations with regard to the Division of Revenue. Notably, the Senate recommended an allocation of Kshs415.9 billion as equitable share to the county governments for Financial Year 2024/2025 based on the following- (1) An adjustment by 6.4 per cent of annual growth factor. 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."
}