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{
    "id": 468773,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/468773/?format=api",
    "text_counter": 374,
    "type": "other",
    "speaker_name": "",
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    "speaker": null,
    "content": "apparent that Kshs190 billion shared out across the 47 counties would be inadequate to cover the cost of the functions which have been devolved or which will be devolved, effective from 1st July. The effect of it again was very clear. Up to 18 counties will actually suffer a deficit of over Kshs28 billion. In other words, some of the counties will actually have deficits. We have examples; Nyeri County would have a deficit of up to Kshs3.5 billion if we were to share out Kshs190 billion across the 47 counties using that formula. What that means, therefore, is that, 18 counties would not be able to provide services or to pay for the services that have been devolved to the county governments. That would mean that we are actually going to set up the counties for failure. For that reason, it has been decided that indeed, after consultations; we have had sittings with the Treasury Secretary and it is our feeling that there is no way Kshs190 billion can sustain the counties and that is why we increased that figure by Kshs48 billion to bring it to Kshs238 billion. Mr. Chairman, Sir, we have decided to leave the figure for conditional grants as it is in the Bill. The Kshs20 billion is a grant that is being given conditionally by the Treasury to some counties, specifically, Kshs3.2 billion or Kshs3.4 billion which will actually be money that will be used for the Level Five hospitals in some of the counties and the balance of slightly over Kshs16 billion is money that will be for donor funded projects that must continue to be financed by the national government. That is the basis for the amendment. This is an increase of Kshs48 billion. That would bring the county allocation to 42.4 per cent. Again, it is clear that it is the Jubilee Government’s commitment; a pledge that has been made by this Government that it will raise the county allocation not at the minimum of 15 per cent but to 40 per cent--- This is a clear indication that 42.4 per cent is indeed higher than the 40 per cent we pledged. Thank you."
}