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"id": 184431,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/184431/?format=api",
"text_counter": 170,
"type": "speech",
"speaker_name": "Mr. Mudavadi",
"speaker_title": "The Deputy Prime Minister and Minister for Local Government",
"speaker": {
"id": 84,
"legal_name": "Wycliffe Musalia Mudavadi",
"slug": "musalia-mudavadi"
},
"content": " Mr. 2676 PARLIAMENTARY DEBATES October 14, 2008 Deputy Speaker, Sir, I beg to move that Mr. Speaker Do Now Leave the Chair. I wish to thank you and this august House for giving me this opportunity to present both the Recurrent and Development Votes for the Ministry. The Ministry belongs to the infrastructure development sector, whose main role is to advise, co-ordinate activities and guide the operations of the 175 local authorities throughout the Republic of Kenya. The main objective of this mandate is to enable local authorities enhance local governance and ensure that there is efficient delivery of services. This is achieved through improving financial management, ensuring that there is accountability, transparency and putting in place mechanisms for citizen participation in governance. In line with the Ministry's mandate, utilization of the Ministry's resources is geared towards contributing to economic growth and poverty reduction through the following activities. 1. Acceleration of local authority reforms linked to:- (a) Improved budgeting, sound financial management practices and enhancement of revenue mobilization. (b) Participatory service delivery planning and implementation. (c) Capacity building. 2. Spearheading the implementation of pro-poor development programmes in local authorities through the disbursement of funds for projects that address unemployment and poverty. 3. Development policies, systems and procedures to strengthen and institutionalise a democratic and participatory community-based decision-making process. 4. Formulation and implementation of policies aimed at promoting orderly urban development and addressing challenges of urbanisation. 5. Development of retail markets within urban areas to improve internal trade and uplift the socio-economic life of the local residents. 6. Improvement of solid waste management in order to provide a healthy living environment in urban centres. 7. Provision of equipment and to build human resource capacity to deal with disaster prevention and management at the local level. To achieve these objectives, I am requesting the hon. Members to approve a total of Kshs12,587,804,590 for my Ministry during the current financial year 2008/2009. Out of this amount, Kshs10,159,000,000 is for the Recurrent Expenditure. Of this Recurrent Expenditure, Kshs159,860,368 is for personnel costs; Kshs235,875,632 is for operations and maintenance; Kshs9,250,000,000 is for the Local Authority Transfer Fund (LATF) and Kshs513,264 for the contribution in lieu of rates. The remaining Kshs2,428,804,590 is for the Development Expenditure. Mr. Deputy Speaker, Sir, the funds for the Recurrent Budget are, therefore, distributed as follows: Administration and financial management in local authorities; Kshs64,954,072. The Ministry provides management support services to local authorities which are geared towards enhancing administrative and financial capabilities. The Ministry conducts both routine and extra-ordinary inspections into the affairs of local authorities. The inspections are meant to reveal gaps in the operation systems and structures. This information is used as a basis for taking remedial measures in individual local authorities and also to help develop policies for improving the sector. The inspections are also meant to be a deterrent against financial mismanagement. My Ministry has been keen to ensure that all local authorities are well managed as a pre-requisite for effective service delivery and spearheading local economic development. The second aspect is the Kenya Local Government Reform Programme where we are seeking Kshs79,197,036. As I have pointed out in several fora, my Ministry is fully committed to reform the local government sector. To achieve this objective, various reforms are being undertaken, financed both by the Government and the European Union (EU) this financial year. In October 14, 2008 PARLIAMENTARY DEBATES 2677 this regard, the reform initiatives and activities of the Ministry are increasingly being anchored on the Kenya Vision 2030 through the Local Government Sector Reform Strategy. Mr. Deputy Speaker, Sir, as I have mentioned earlier, the main areas of concern are financial management and service delivery in local authorities. So far, the Local Authorities Integrated Financial Operations Management System (LAIFOMS), have been successfully carried out in 36 councils. This is a computer-assisted system whose specific objective is to assist local authorities to harmonise and standardise data. My Ministry is currently rolling out the software to other local authorities in the current financial year. Mr. Deputy Speaker, Sir, the system is intended to improve efficiency, accountability and transparency in conducting financial operations of local authorities. The Ministry has also developed and is implementing a new accounting and reporting system for local authorities. The Ministry has also developed an inspection manual, Service Delivery Tools and Treasurer's Manual. The Ministry is pro-active in monitoring budget preparation and implementation so that any deviation can be detected early enough and corrective measures taken. Mr. Deputy Speaker, Sir, as regards the LATF, we are seeking Kshs9,250,000,000 this financial year, 2008/2009. A total of Kshs9,250,000,000 will be disbursed to all the 175 local authorities in accordance with the LATF Act and Regulations. The LATF was designed as a mechanism to supplement the financing of the services and facilities within local authorities, that the local authorities are required to provide under the Local Government Act Cap.265. The LATF is, therefore, structured to provide both budget support and strong incentives to local authorities to improve service delivery, financial management, accountability and debt resolution. The LATF allocation criteria is designed to ensure that funds are allocated in a predictable and transparent manner. The LATF allocation is based on the following criteria as per the LATF Regulations:- 1. A basic minimum lumpsum of Kshs1.5 million for each local authority. 2. Population of each local authority as per the 1999 population censures issued by the Central Bureau of Statistics. 3. Urban population of the respective local authorities. The LATF disbursement conditionalities are as follows: For local authorities to qualify for the receipt of LATF fund, they must fulfil the following major conditionalities among others:- (a) At least, 65 per cent of the allocation from the service delivery account must be budgeted for capital expenditure. (b) Expenditure on personnel emoluments should not exceed 50 per cent of the total expenditure of the local authority. (c) From 1st July, 2000, it is a mandatory requirement that all statutory charges payable by the local authorities shall have been paid within the year in which they are due. (d) The statement of actual receipts, expenditures, cash and bank balances up to 30th June, 2008 must be submitted. (e) A statement of abstracts of accounts for the Financial Year 2007/2008 must be produced and submitted. In the event that a local authority fails to meet any of the above conditionalities, it attracts a penalty. Mr. Deputy Speaker, Sir, hon. Members are encouraged to acquaint themselves with the Local Authorities Transfer Fund (LATF) annual reports which give detailed information on the revenues and expenditures, progress on service delivery and projects implementation, among others. The LATF reports are distributed to this House and also published in the print media and the Ministry's website for perusal. The next issue is the Local Authorities Service Delivery Action Plan (LASDAP). In order 2678 PARLIAMENTARY DEBATES October 14, 2008 to enhance citizen involvement in the affairs of local authorities, my Ministry introduced, in 2001, the concept of participatory planning through preparation of LASDAPs. This reform initiative is a process that accords mechanisms for interaction between the local authorities and their citizens or stakeholders on financial information exchange, planning of projects and activities and their implementation. Starting from the Financial Year 2006/2007, local authorities have been, and will continue to be, utilising 20 per cent of the capital expenditure on pro-poor projects. The concept of the local community contracting for provision of infrastractural services has been embraced with the aim of creating opportunities for employment at the local level, while addressing the Vision 2030's economic, social and political pillars. There is also the Street Families Rehabilitation Trust Fund where we are seeking Kshs24 million. Through the Children's Act passed by this House in 2001, all local authorities were mandated to safeguard and promote the welfare of the marginalised groups through establishment of rehabilitation programmes and the creation of departments to deal with the rights and welfare of street families. In order to provide the policy framework on this issue, my Ministry initiated the Street Families Rehabilitation Programme in 2003 to do the following:- (i) co-ordinate rehabilitation activities for street families in Kenya, in partnership with other service providers; (ii) to educate the public; (iii) to mobilise resources and manage a fund to support rehabilitation activities; and, (iv) to encourage de-centralisation of activities to local institutions to benefit those surviving on the streets of Kenya's towns and cities. Mr. Deputy Speaker, Sir, due to the growing numbers of the street families, which are estimated at 300,000 countrywide, there is an urgent need to build capacity and empower all local authorities to initiate sustainable programmes that will eradicate this phenomenon. So far, the Ministry has been able to rehabilitate 8,000 street families. This has been a daunting task! If you remember, these families had been a security risk to residents and tourists in our urban centres. The success in the rehabilitation process has been made possible by the partnership of local authorities and development partners such as UNICEF, the ILO, Goal Kenya and several faith-based organisations. In this financial year, my Ministry has set aside Kshs24 million towards the street families rehabilitation initiatives. The funds will be used to build the capacity of local authorities to start rehabilitation programmes, and chapters in the provincial towns. Some of the funds will also go to vocational training of the rehabilitated street families to accelerate their re-integration to the mainstream societies, making them self-reliant. On the Development Vote, we are seeking Kshs2,428,804,590, the total amount allocated for the Development Expenditure in this Budget. These funds will be applied to the following projects and programmes:- (i) In the infrastructure sector, we are allocating Kshs1,317,000,000. This will cover the roads sub-sector. Here we are allocating Kshs640,252,876. As part of my Ministry's efforts towards the realisation of its objectives aimed at achieving Vision 2030, provision of road infrastructure in various local authorities has been a key component in my budget. My Ministry will apply these funds to the completion of the on-going roads projects before the Urban Roads Authority takes them over. This will help to build a sustainable road maintenance capacity in various local authorities. Currently, some of the on-going road construction projects are the Kisii by-pass roads, Kangema Township roads, Kigoya-Mudete Road and the Likoni Missing Link in Nairobi. Mr. Deputy Speaker, Sir, my Ministry is also undertaking improvement of roads in the municipal councils of Kerugoya-Kutus, Kakamega and Nyeri, with the support of the Road Maintenance Levy (RML) Fund. In addition, a total of 134 local authorities, including Nairobi, October 14, 2008 PARLIAMENTARY DEBATES 2679 Mombasa, Kisumu, Eldoret, Nakuru and all district headquarters, are accessing funding from the RML to maintain roads in their areas of jurisdiction. The funds requested will also be utilised to complete the on-going construction of bus and matatu termini in various parts of the country. (ii) In the building sub-sector, which is basically the development of markets, we are seeking Kshs1,207,000,000. In order to improve internal trade, accessability to markets and orderliness in our urban centres, the funds allocated this financial year will be utilised to complete the on-going construction of major and mini-markets in various parts of the country. Some of the existing markets will be re-structured and new ones started. The benefits of operationalising Muthurwa Hawkers Market are quite clear as exemplified in the decongestion and cleanliness of our streets, especially around the Central Business District (CBD), while the orderliness of the vehicular traffic has also been achieved. Additionally, another market in Westlands, which will go a long way in easing pressure on the surrounding markets, is currently under construction. Mr. Deputy Speaker, Sir, to deliver the 10 per cent annual growth, high quality life and social equity envisioned in Vision 2030, and particularly to address youth unemployment, I am requesting hon. Members to approve a total of Kshs1,207,000,000 towards the development of the wholesale and retail markets in our urban areas. First, to strengthen the wholesale market function, Wakulima Market in Nairobi and Kongowea Market in Mombasa will be restructured as a short- term intervention. The implementation of a state-of-the-art Nairobi Fresh Produce wholesale market is long overdue, and is now being solicited by farmers and private sector investors. Due to the anticipated impact of this project, the Government is expected to play a catalyst role through the Exchequer funding. On retail markets, Kshs736 million will be utilised towards the completion of 16 on-going retail market projects in 12 local authorities initiated during the Financial Year 2007/2008. Mr. Deputy Speaker, Sir, Kshs400 million will be utilized to develop eight retail markets in seven local authorities to accord a conducive business environment for our small scale traders. These developments are being augmented by external assistance from individual local authorities, private investors and our development partners, particularly the European Union (EU), who are expected to disburse over Kshs206 million towards the development of 18 markets during this financial year. Mr. Deputy Speaker, Sir, majority of the current retail markets are also in a state of disrepair. As a first step, I have allocated Kshs160 million to be utilised towards restructuring of eight retail markets in seven local authorities and Kshs35 million is allocated for planning of the intended developments. Mr. Deputy Speaker, Sir, another critical area is solid waste management. We are seeking Kshs150 million. The management of solid waste is one of the key services that all local authorities in this country are mandated to provide within their areas of jurisdiction. Mr. Deputy Speaker, Sir, my Ministry, in partnership with the Government of France through the Agence Francaise de Development (AFD), is implementing a solid waste management project in Mombasa and Nakuru that will, among other things, improve the whole solid waste management infrastructure in the two municipalities. The project is slated to be completed in 2011 and the total grant from the French Government is Kshs1.8 billion. In order to improve service delivery in this sector, my Ministry has drawn up strategies which, when operational, will provide a framework for the transformation of our waste management from being disposal oriented to being recovery oriented. Further, those strategies will bind all local authorities in setting their specific action plans for solid waste management for the period between now, that is 2008, and 2030. Mr. Deputy Speaker, Sir, within this framework, my Ministry intends to start improvement 2680 PARLIAMENTARY DEBATES October 14, 2008 of waste collection and disposal facilities in five provincial headquarters of Embu, Nyeri, Kisumu, Kakamega and Garissa in this financial year. In addition, the Ministry will initiate programmes of public education and awareness on solid waste management and the orientation from waste dumping to waste recovery, and increase coverage for solid waste management services. I would also like to add that we are also working out a proper framework where we can engage the private sector in a structured way in this area of dealing with solid waste management. Mr. Deputy Speaker, Sir, one other critical issue is the question of fire disaster prevention and management. We are looking for Kshs20 million. I would like to say that fire outbreaks and other disasters cause serious damage in terms of destruction of life and property. Under the Local Government Act, all the 175 local authorities are mandated to provide disaster prevention and management services. Mr. Deputy Speaker, Sir, the capacity, however, falls far short of the requirement. In this respect, my Ministry continues to address this challenge in order to put in place responsive systems and capacity building. During the financial year, my Ministry will complete the already ongoing acquisition of the following equipment for distribution to various local authorities:- Ten fire entry protective equipment sets and ten sets of search and rescue equipment. In addition, the Ministry will undertake training for fire and rescue operations. Mr. Deputy Speaker, Sir, there is also the development of the National Urban Development Policy and digital mapping preparation of urban development plans and we are seeking Kshs150 million for that. My Ministry is mandated to ensure that the development of urban areas is co- ordinated and well planned. This calls for a policy to guide local authorities in that endeavour. In this respect, therefore, my Ministry has started the preparation of the National Urban Development Policy and it is envisaged that it will be completed in the Financial Year 2009/2010. Mr. Deputy Speaker, Sir, my Ministry will also undertake mapping of some local authorities for purposes of preparing urban development plans to facilitate the planning and implementation of development activities. In this regard, digital mapping will be undertaken in Eldoret, Bungoma, Garissa, Othaya and Mtwapa at the pilot stage, and other towns will be brought on board in subsequent financial years."
}