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{
    "id": 1527700,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1527700/?format=api",
    "text_counter": 104,
    "type": "speech",
    "speaker_name": "Sen. Ali Roba",
    "speaker_title": "",
    "speaker": null,
    "content": "The Committee has recommended setting aside Kshs13.9 billion from the expected collection of RMLF for Financial Year 2025/2026 and a proportionate amount as a share of the Kshs175 billion to also facilitate county governments to offset their pending bills on roads. Mr. Speaker, Sir, while recent Cabinet proposal to merge Kenya Urban Roads Authority (KURA) and Kenya Rural Roads Authority (KeRRA) is a step in the right direction, the BPS has not addressed itself to the issues relating to what that will entail in both those entities. The Committee made several recommendations which included financial recommendations as follows- (a) The county equitable share for Financial Year 2025/2026 be increased to Kshs465,001,459,673 for the county government. (b) The national Government equitable share to be apportioned at Kshs2,359,449,965,860. (c) That the Equalisation Fund be allocated Kshs10,589,554,076. (d) That Additional Allocations to counties be Kshs69,802,409,624. The commissions and independent entities that appeared before this Committee have presented very justifiable reasons why some adjustment in terms of budgetary allocation is to be realized. The cumulative allocation proposed by the Committee is about Kshs2.4 billion for Financial Year 2025/2026. The justification by the Committee for the proposal of Kshs465 billion to shareable revenue to county governments is as follows- The Committee's recommendation on the county equitable share to be set at Kshs465 billion is informed by consideration of the prevailing economic conditions in the country such as general economic performance, expected revenue inflation factors, among others. Further, the Committee took into account the non-discretionary expenditure from the national Government priorities expected to be implemented by the counties. Mr. Speaker, Sir, the Ksh465 billion is based on the approved Division of Revenue Act No.7 of 2024, which contained an allocation of Ksh400.01 billion, adjusted by an inflation factor of about 4 per cent bringing that figure to Ksh416 billion. This normally covers the additional growth in shareable revenue and general inflation in the economy. On top of this, the committee added the following non-discretionary expenditure to be borne by counties as follows- The impact of Housing Levy, which is legislation passed at the national level that has a direct impact on the counties, amounting to Kshs4.1 billion; Contributions to National Social Security Fund (NSSF) which was enhanced, that translates to about Kshs6 billion. In addition to that, we have the matching allocation on county aggregation industrial parks, which is a national Government priority project meant to improve the market situation within the country, amounting to Kshs11.8 billion; matching allocation to Community Health Promoters (CHPs) which was a pronouncement of the national Government, which is shared on 50-50, amounting to Ksh3.23 billion; An annual wage 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."
}