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{
    "id": 1532602,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1532602/?format=api",
    "text_counter": 4855,
    "type": "speech",
    "speaker_name": "Molo, UDA",
    "speaker_title": "Hon. Kuria Kimani",
    "speaker": null,
    "content": "One notable payment from our State Department was to the Kenya Revenue Authority (KRA) to cater for operations and salary shortfalls. Another one was to the East African Development Bank for data analysis. After we analysed those payments, we found that they merited, and we approved them. However, we strongly recommend reducing the percentage that the National Treasury is allowed to disburse in terms of Article 223 payments from 10 per cent to 3 per cent, or have them seek prior approval from the National Assembly for expenditures above Ksh5 billion. One of the great economists I like, Wagner, states that as economies develop, public expenditure increases as a share of the GDP, but spending must be directed towards productive investments rather than unproductive recurrent costs. The issue of budgetary allocations has been spoken of greatly in this House. Whereas budget allocations are a political process, we must balance between our political interests and efficiencies. That is the challenge for all Committee chairpersons, especially those who have just been elected to Departmental Committees. They should not only balance political interests but, most importantly, allocate resources where there are efficiencies so that we have a budget that speaks to our country and the growth of our GDP. If we compare Article 223 payments with the best practices in the world, for example, in the United Kingdom (UK), they cap it at 2 per cent, and there is very proper parliamentary scrutiny over such payments. Another challenge we found in the Second Supplementary Estimates is in the beneficiaries of the Equalisation Fund. Since the establishment of the Equalisation Fund, only Ksh13.43 billion out of Ksh62.4 billion has been transferred. The Second Supplementary Estimates 2024/2025 have reduced the allocation of the Equalisation Fund from Ksh8 billion to Ksh2.5 billion, a Ksh5.5 billion reduction. Is that reduction meant to deny those funds to the marginalised areas? The answer is not clear. It is good to note that two weeks ago, this honourable House, through the Departmental Committee on Finance and National Planning, passed a new law because what was lacking was a legal framework. Hon. Temporary Speaker, I remember your contribution to that debate. The drafters of our Constitution intended for the Equalisation Fund to help marginalised areas of this Republic get closer to other areas through affirmative action. However, the allocation of those funds is too thinly stretched to have any meaningful impact in those areas. When a county is allocated Ksh10 million to build a dam, that amount is too little to see the dam to completion. Money is set aside for the Equalisation Fund, but it is so thinly stretched that even if the Fund would last for another 20 years, it would still not be enough. It is important to note that the Fund is coming to an end in 2030. If we do not allocate those resources adequately to those areas such that they have an impact, we will always have marginalised areas. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}