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{
    "id": 1520115,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1520115/?format=api",
    "text_counter": 106,
    "type": "speech",
    "speaker_name": "Mandera North, UDM",
    "speaker_title": "Hon. Major (Rtd) Abdullahi Sheikh",
    "speaker": null,
    "content": "The Equalization Fund is enshrined in Article 204 of the Constitution. The framers of the Constitution, from the beginning, had in mind that all counties within the country should be equal. That is why they came up with the Equalisation Fund. The initial concept was that it would cover 14 counties but as we speak it covers 34 counties. The unfortunate part is that the amount allocated to the Fund has not increased. The percentage that is allocated to the Fund still remains the same despite the fact that it now covers 34 counties after other pockets of marginalisation have been added. Hon. Deputy Speaker, this Bill comes in handy because it seeks to cure some of the challenges that the Equalisation Fund has faced over time. One key aspect I want to support is the issue of the sunset clause. The Equalisation Fund has a sunset clause of 20 years. We are now left with six years despite the fact that the Fund has not yet been appropriated as envisaged in the Constitution. The remaining six years will come to an end and the monies will not have been appropriated or utilised. The sunset clause needs to be extended by another 10 or 20 years to enable the Fund cover all the marginalised areas as envisaged. Article 204 of the Constitution also talks about how this Fund is to be administered. It talks about directly or indirectly, which comes in terms of regulations. Perhaps during the Committee of the whole House, we should consider that 50 per cent be done indirectly and 50 per cent be done directly. That way, it can take care of concerns from all sectors, because we will have an advisory board which, in essence, will not be administering the Fund. The advisory board will be receiving reports from the counties on areas to be covered. If we administer 50 per cent indirectly, the boards will have work to do in terms of ensuring that the other 50 per cent is administered directly. Hon. Deputy Speaker, the Regulations that are currently in force favour full administration at the county level. The worst part is that some of these funds are utilised for minute projects of amounts ranging from Ksh2.5 million to Ksh5 million. Those kinds of expenditures lose the essence of this kind of Fund. When the Equalisation Fund was first appropriated, the allocations to constituencies or counties ranged from Ksh50 million to Ksh100 million. However, the recent allocations for programs are shockingly between Ksh2.5 million and Ksh3.5 million. How will such allocations be impactful on the lives of the people in marginalised areas? This is because of the current Regulations. This House has the powers and privilege to change them. The Equalisation Fund Bill as it is, is quite okay and all we need to do is to ensure that the Regulations are amended to suit the realities on the ground. Hon. Deputy Speaker, I understand it was 14 counties initially, and almost 60 per cent of the funds still cover the 14 per cent with the additional counties that has taken it to 34 per cent. The question is: Has this money been utilised? Every financial year, this House appropriates funds, but they are not utilised. We have arrears to the tune of almost Ksh13 billion lying at the National Treasury without being utilised and yet the sunset clause is just around the corner - six years from now. Will the objectives of this Fund be achieved? It will not. We would be making several amendments in the Committee of the whole House, but by and large, I support the Bill, especially ensuring that the sunset clause for the Equalisation Fund is extended by 10 or 20 years as we fairly look at the issue of administration. Is it the board that administers 100 per cent or the counties? As it is now, it is the counties. Unfortunately, as I said before, they only use it for minute projects of about Ksh3 million or Ksh4 million, which is not something to be proud of. In the next administration of this Fund, projects of not less than Ksh50 million should be done in each constituency so that it is impactful, where people can see it and realise that equalisation is something helpful. Otherwise, I support."
}