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{
    "id": 1569922,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1569922/?format=api",
    "text_counter": 134,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "There is also the high cost of public debt. This is largely due to a relatively stable, but still high exchange rate to the dollar, as well as high interest rates in the domestic markets. Public debt services in 2025/2026 will account for about 52 per cent of ordinary revenue, which is higher than the average of 41 per cent over the period from 2016/ 2017 to 2024/2025. So, we are going up in terms of percentage of our ordinary revenue that goes towards settling the public debt or servicing public debt. What strategies is the Ministry taking to manage county government funding constraints? The national Government through National Treasury is managing funding constraints to county governments using a variety of strategies. By utilizing these strategies in a comprehensive and coordinated manner, the National Treasury has, therefore, been able to effectively manage funding for county governments and support efforts to deliver essential services and promote development despite the prevailing fiscal constraints due to expenditure pressures and public debt commitments as shown above. The strategies enumerated below aim to ensure that county governments have the financial resources they need to fulfill their responsibilities and deliver services to Kenyan citizens. One is the conditional and unconditional allocations to counties. We have continued to give additional allocations to counties, which are earmarked for specific programmes or projects as defined by the national Government. They provide targeted funding for special policy goals or initiatives. These additional allocations can ensure that certain areas are prioritized and that funding is allocated in a way that aligns with the national priorities. However, the County Governments Additional Allocations Bill has always been passed by Parliament late towards the close of financial year, thereby denying counties additional funding for programmes under national priorities such as, County Aggregation Industrial Parks (CAIPs) and Community Health Promoters (CHPs). Currently, we have a problem even absorbing this year's county additional allocations, because of how long it took between the two Houses to agree. So, promoting local revenue generation in the form of own-source revenue, again here the National Treasury has been empowering county governments to generate their own revenue through taxation and other means. This is meant to increase the autonomy and fiscal sustainability of county governments to obliviate the risks associated with over-reliance on equitable share to fund essential services. The National Treasury has finalized the development and piloting of own-source revenue forecasting tools for counties to help them expand their revenue base, thus allowing them to implement realistic charges, levies and fees geared towards raising more revenues. It is expected that this own-source revenue system generation will strengthen county governments’ autonomy and promote fiscal sustainability. Number three is promoting transparency and accountable financial management. The National Treasury is committed to ensuring that funding in counties is used effectively and efficiently, so that county governments are accountable for the use of public funds. The National Treasury, therefore, urges counties to adhere to the clear guidelines for the allocation and use of funds through promoting transparency by making financial information readily available to the public as is the norm at the National Treasury. I hope this House will help in realizing this. 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."
}