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{
    "id": 1570213,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1570213/?format=api",
    "text_counter": 104,
    "type": "speech",
    "speaker_name": "Sen. Ali Roba",
    "speaker_title": "",
    "speaker": null,
    "content": "the CRA. The Committee engaged the National Treasury, the Commission on Revenue Allocation, the Kenya National Bureau of Statistics, the Council of Governors, the Institute of Certified Public Accountants of Kenya, Budgetyhub, the County Assembly of Bomet Budget Office on behalf of Mr. Bernard Rono, Stella Chemutai, and Nixon Kirui, the Budget Talk Global, the Institute of Public Finance, Achievers of Kenya, Coastal People Forum, and Mr. John Kangani. During the deliberations, the Committee made various observations. The Fourth Basis recommended by the CRA incorporated a new parameter called the stabilisation factor. According to the CRA, this factor was introduced to ensure that no county loses any money from what they are getting in the current Financial Year 2024/2025. However, it will be prudent to address transitional effect from one basis to another using scientifically generated deviation parameter. Mr. Speaker, Sir, that the data used to generate the income distance index, Gross County Product (GCP), is not directly derived from each county, but rather the Kenyan National Bureau of Statistics applies a top-down approach to determine each county's contribution to Gross Domestic Product (GDP). Further, the approach used by the CRA to determine the index is similar to the level of poverty gap in a particular county when compared to Nairobi City County. Additionally, using Nairobi City County as a reference point makes it difficult to assign an index to this reference that is specific to the county. Mr. Speaker, Sir, we have engaged these stakeholders and we have picked their input at various levels. The underlying issue the Committee faced was that when we convened for consultation in the presence of the Commission on Revenue Allocation (CRA) in Naivasha, the Committee was guided by the entire Senate and the attendees of that meeting. The Senate's guidance was based on two principles. The first principle is that no county should lose money from its current allocation. The second principle is that, any amount exceeding Kshs387.425 billion must be distributed so that each county gains marginally or equitably. In order for the Committee to arrive at a position that conforms to the Senate's agreed principles, we had to apply the third basis formulae of revenue sharing and convert it into an allocation factor to safeguard each county’s current share. Thus, Kshs387.425 billion was held as a factor for each county based on the third basis formulae of revenue allocation. Next, we had to establish parameters for distributing amounts exceeding Kshs387.425 billion. At this juncture, it is important to note that the National Assembly has already approved the Division of Revenue Act (DORA) at Kshs405 billion. Additionally, the Senate of the Republic of Kenya has also approved DORA at Kshs465 billion. It is very important for the nation to understand that the Senate arrived at the figure of Kshs465.425 billion based on non-discretionary expenditures arising from legislations that are passed by Parliament at the national level. These expenditures have been added to what counties have been receiving. These non-discretionary expenditures include Housing Levy deductions amounting to Kshs4.1 billion, enhanced contributions to the National Social Security"
}