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{
    "id": 1545645,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1545645/?format=api",
    "text_counter": 200,
    "type": "speech",
    "speaker_name": "Sen. Tabitha Mutinda",
    "speaker_title": "",
    "speaker": null,
    "content": "For the first half of Financial Year 2024/2025, revenue performance fell short of Kshs1.43 billion by Kshs1.07 billion as of December last year, with a collection of Kshs1.3 billion. This was majorly occasioned by underperformance of the ordinary revenue to a tune of Kshs93.3 billion. The 2025 PBS proposed several initiatives to improve and also maximise revenue collection, which include operationalisation of the national tax, Medium-Term Revenue Strategy (MTRS) of 2026/2027, strengthening tax administration, broadening the tax base, reducing tax expenditures, leveraging on technology to modernise tax processes and close revenue loopholes. Improving tax system efficiency and a focus on non-tax revenue that Ministries, Departments and Agencies (MDAs) can generate through public services. The PBS overall budget for Financial Year 2025/2026 is Ksh4.3 trillion, which is 9.8 per cent above the approved expenditure in Supplementary One for Financial Year 2024/2025. You will realise that the previous allocation for the division of revenue to the counties was Kshs387.7 from our last year’s proposal was around Kshs410 billion, which was occasioned by demonstrations that took place against the Finance Bill then. That prompted the allocation to the counties to be reduced to Kshs387.7 billion. The shareable revenue is expected to grow from a projected Kshs2.5 billion at the end of Financial Year 2024/2025 to Kshs2.8 billion for Financial Year 2025/2026. I listened to my good friend, Sen. Mungatana, when he talked about the increment as far as revenue is projected. The same should reciprocate when it comes to county allocations. What we have proposed, as a Committee, is an increase from Kshs387.7 billion to Kshs465 billion to the county governments. If I can mention how we came up with this particular figure, you will note that we have increments that affect county governments. One of those increments is the Housing Levy, which total to about Kshs4.1 billion. That is supposed to be taken care of by county governments. The enhanced contributions to the National Social Security Fund (NSSF) total to Kshs6 billion. Matching allocation to the County Aggregation and Industrial Parks (CAIPs) Project for 18 counties totals to Kshs11.8 billion. For our dear CHPs out there, their budget is Ksh3.23 billion. This is the responsibility of the counties. Annual wage increment, which is normally about 10 per cent, amounts to Kshs6.3 billion, which cuts across the 47 counties. Basic salary increment for doctors’ CBA for 2017 amounts to about Kshs3.5 billion. All that total to Kshs34.9 billion. These are some of the issues we raised last time when we increased the Division of Revenue figures. With the sums that I have just read out, they justify the increment of up to Kshs365 billion. It is further expected that sharing of equitable share among counties for the next financial year shall be used in the proposed fourth formula basis, which I know is a critical issue that we will highly participate in. In full recognition of the fiscal impact of the new formula from previous years, the Committee has provided an additional Kshs14 billion to cushion all counties from the transitional effects of the new basis. A figure of Kshs14 billion, Kshs34.9 billion, the previous amount of Kshs387.7 billion plus others will give us Ksh465 billion. As a Committee, we recommended that the county equitable share for this financial year should be Kshs465 billion while the national Government’s equitable share will be Kshs2.3 trillion. 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."
}