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{
    "id": 1478186,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1478186/?format=api",
    "text_counter": 227,
    "type": "speech",
    "speaker_name": "Sen. Ali Roba",
    "speaker_title": "",
    "speaker": null,
    "content": "the Division of Revenue Act; and, the horizontal division of revenue between the 47 counties through the County Allocation of Revenue Act. With respect to the Financial Year 2024/2025, the first is complete as there is a Division of Revenue Act in force. However, the second step is in abeyance as the County Allocation of Revenue Bill has not been enacted into law. As a result, the National Treasury has not made any transfers to counties of their share of nationally raised revenue. The delay in disbursement of the county share of nationally raised revenue has paralyzed county governments, impeded their ability to discharge their functions and is likely to lead to devastating consequences in crucial areas such as service delivery in health sectors, among others. Mr. Deputy Speaker, Sir, following a request by the Standing Committee on Finance and Budget on possible remedies to fund the counties while waiting for passage of the County Allocation of Revenue Bill, the National Treasury and Economic Planning, through a letter dated 5th August, 2024, indicated that there are possible remedies for counties to access a certain percentage of the equitable share pending the passage of the County Allocation of Revenue Bill, 2024. The Treasury indicated that there exists a court’s opinion in Advisory Opinion No.3 of 2019 and the provisions of Regulation 134(1), which allow the CoB to authorize withdrawals of up to 50 per cent from the Consolidated Fund, based on the last County Allocation of Revenue Act approved by Parliament to meet the expenditure of the county governments for the current financial year. Further, during a meeting held on 16th September, 2024, with National Treasury and Economic Planning, the Cabinet Secretary, indicated that the National Treasury was ready to avail some funds to counties to facilitate them meet non-discretionary monthly expenditures such as salaries. However, the National Treasury had requested an advisory opinion from the Office of the Attorney General. Mr. Deputy Speaker, Sir, Regulation 134 of the national Government Regulations 2015 provides that - “134. (1) If the County Allocation of Revenue Bill submitted to Parliament for a financial year has not been approved by Parliament or is not likely to be approved by Parliament, by the beginning of the financial year, the Controller of Budget may authorise withdrawals of up to 50 per cent from the Consolidated Fund based on the last County Allocation of Revenue Act approved by Parliament for the purposes of meeting expenditure of the county governments for the financial year.” Further, in Supreme Court Advisory Opinion No.3 of 2019, the court had occasion to consider the question of allocating revenue to the county governments, where the enactment of DoRA has been delayed and made the following findings- (a) That, should an impasse occur due to the failure of the mediation process occasioned by a lack of concurrence between the two Houses over the Division of Revenue Bill and the National Assembly, for the purpose of meeting the expenditure necessary to carry out the services of the County Government during that year until such a time the Division of Revenue Act is assented to, can authorize the withdrawal of money from the consolidated fund. The money so withdrawn shall be included under separate votes for the several services in respect of which they are withdrawn. 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."
}