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{
"id": 1477476,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1477476/?format=api",
"text_counter": 161,
"type": "speech",
"speaker_name": "Sen. Ali Roba",
"speaker_title": "",
"speaker": null,
"content": "The Fund faced further litigation in 2023, when conservatory orders were issued by the High Court of Kenya at Garissa, restraining the Commission on Revenue Allocation (CRA) from implementing the second marginalization policy. This is due to concerns being raised on lack of public participation and the naming of some beneficiary wards in Wajir County. This matter was eventually settled. Another contributing factor to the operationalization of this Fund has been the delay in the implementation of policies on marginalization. Due to the inordinate delay in the approval of the regulations for the administration of the Fund, the implementation of the policies has also been delayed. The first policy on marginalization, which was introduced in 2013 was implemented by the Equalization Fund Appropriation Act of financial year 2017/2018. The policy was financed from the entitlement and the allocation to the Equalisation Fund for financial years 2014/2015, 2015/2016 and 2016/2017. Notably, the policy lapsed in 2016/2017, but the implementation of the projects is ongoing. Latest statistics indicate that as of 31st May, 2023, a total of 359 projects under the first policy were financed by the Equalisation Fund and were at different stages of implementation. Out of these, 243 projects are 100 per cent complete. The second policy on marginalization came into force in 2018 and the projects therein were to be funded from the funds of the financial years 2011/2012, 2012/2013, 2013/2014, 2017/2018, 2018/2019, 2019/2020 and 2020/2021. The Equalization Fund Appropriation Act, 2023, and the allocation in the Equalization Fund Appropriation (No.2) Bill, 2023 for financial year 2023/2024 will be utilized to implement the second marginalization policy. Despite the lapse of the second policy in June, 2021, the status of implementation of these projects under this policy remains unclear. Madam Temporary Speaker, two policies running concurrently, beyond their implementation timelines complicates the oversight of the Fund in addition to delaying returns on investment. Of even greater concern is that the third policy on marginalization is yet to be submitted to Parliament. The legislative and policy delays that I have canvassed have led to an accumulation of arrears to the Fund, totalling to Kshs33,597,717,433. In financial years 2011/2012, 2012/2013 and 2013/2014, the Fund had no allocation since the first policy on marginalized areas had not yet been developed by the CRA. Further, from the financial year 2017/2018 to 2020/2021, there were no allocations to the Fund due to nullification of the guidelines. However, since the Fund resumed operations in 2021, the National Treasury has shown blatant disregard for the timely implementation of the Fund’s projects and has failed to conclusively address the issue of accumulation of arrears. I note with concern that the National Treasury, in a letter to the Senate dated 19th May, 2023, committed to allocate Kshs9,976,766,000 for four consecutive financial years, from financial year 2024/2025 to financial year 2027/2028 as payment of the arrears. However, in the 2024/2025 budget, the National Treasury reneged on its commitment and allocated Kshs3,547.18 billion only as Equalization Fund arrears. 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."
}