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"speaker_name": "The Senate Majority Leader",
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"content": "(Sen. (Prof.) Kindiki): Mr. Speaker, Sir, I confirm to Sen. Orengo and the House that I fully take responsibility to support this position and will ensure that, that is the position that will be taken. We will consult with my colleague, the Chair of Committee on Finance, Commerce and Economic Affairs and the entire Committee. I will take responsibility. Mr. Speaker, Sir, other than the contentious issue about figures, this Bill has been prepared in accordance with the procedures and parameters which are set out in the Constitution, which are:- 1. Provisions of Article 203 of the Constitution. 2. Revenue allocation criteria approved by Parliament. 3. Cost of running county governments structure. 4. Costing of the ongoing devolved functions. 5. Need to hold harmless the county governments and, therefore, minimize the risks of service disruption. Mr. Speaker, Sir, let me explain in a very general and brief sense, before I rest my case. First and foremost, the horizontal allocation of revenue must satisfy – and it has satisfied – the principles of Article 203. Article 203 of the Constitution sets out the principles that the financial system must satisfy. So, that has been taken care of. And then there is the criteria which was approved by the National Assembly at that time when it was sitting as both the National Assembly and the Senate. Mr. Speaker, Sir, maybe this is the right time for the Senate to decide whether we will have to relook at that criteria again, because the application of this criteria – which was suggested by the Commission for Revenue Allocation (CRA) and approved by the National Assembly, which was also doubling as the Senate before January this year – that criteria has had its own challenges. Some schools of thought believe that, that criteria could end up marginalizing already marginalized counties even further. The Constitution says that every five years, this formula shall be reviewed. So, there is an opportunity to look at the current formula so that by 2017, we see whether or not we need to introduce other parameters and other considerations. Because the whole essence of both the vertical and horizontal allocation of resources to counties and among counties is equity, and that brings me to the second point; that this Bill and the allocation of the sharable revenue has taken into consideration, in line with the formula, disparities among counties as well as disadvantaged areas and groups within counties."
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