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{
    "id": 1445657,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1445657/?format=api",
    "text_counter": 51,
    "type": "speech",
    "speaker_name": "Sen. Ali Roba",
    "speaker_title": "",
    "speaker": null,
    "content": "By a letter dated 10th July, 2024 and received in the Senate on the 11th July, 2024, the President, in exercise of the power under Article 115(1)(b), declined to assent to the Bill and referred it back to Parliament, recommending that the Bill be amended by deleting the First Schedule and substituting with a new schedule. The New Schedule as proposed in the Memorandum by the President contained the allocation to the 47 counties a total of equitable share of Kshs380 billion. Therefore, the President recommended that the County Allocation of Revenue Bill be amended to reflect a different sum of equitable share to counties from that which is contained in the Division of Revenue Act No.5 of 2024. Mr. Speaker, Sir, during the consideration of the Memorandum, the Committee noted that the President indicated that the recommendations were informed by the failure to enact the Finance Bill, 2024, which necessitated the reorganization and rationalization of the Government fiscal arrangement for the Financial Year 2024/2025. This includes the County Allocation of Revenue Bill to accommodate the anticipated revenue reduction that would have been collected by the Finance Bill, 2024, had it been enacted. The budget process in this country is premised upon the two crucial instruments under Article 218 of the Constitution of Kenya, 2010. This process begins with the vertical allocation of nationally raised revenue between the two levels of government. This step is facilitated by the passage of Division of Revenue Bill, which is described by Article 218(1) (a) of the Constitution as a Bill, which divides revenue raised by the national Government between the national and county levels of government. The second and consequential step in this process is the horizontal allocation of revenue among the 47 counties. This is facilitated by the introduction and enactment of the County Allocation of Revenue Bill, which under Article 218 (1) (b) of the Constitution of Kenya, divides among the counties the revenues allocated to the county level of government on the basis determined in accordance with the resolutions enforced under Article 217 - the revenue sharing formula as approved by this House. Mr. Speaker, Sir, the Division of Revenue Act and County Allocation of Revenue Bill are, therefore, inextricably linked. The latter precedes the former. The County Allocation of Revenue Bill gives further effect to the provisions of the Division of Revenue Act, in which the determination of the sum to be allocated to counties is determined. Mr. Speaker, Sir, any recommendation to amend or otherwise vary the First Schedule of the County Allocation of Revenue Bill must be preceded by an amendment to the Division of Revenue Act, and if no such amendment has been made to the Act, then the question of amending the County Allocation of Revenue Bill is mute. These two Bills are not mutually exclusive, but one forms the basis of the other. At the time of the receipt of the Memorandum containing the reservations of the President on the County Allocation of Revenue Bill 2024, the Division of Revenue Act No.5 2024 was already in force and remains in force. The DORA 2024 provides for the county government share of nationally raised revenue of Kshs400.1 billion. The First Schedule of the County Allocation of Revenue Bill 2024 has been passed by the Parliament and forwarded to the President for assent, provides for each county government share of Kshs400.1 billion, arrived at by applying the Third Basis of Revenue Sharing to the County Equitable Shares contained in Division of Revenue Act, 2024. The electronic version of the Senate Hansard Report is for information purposes only.A certified version of this Report can be obtained from the Director, Hansard and Audio Services,Senate."
}