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"content": "of assessing the functions that have been devolved to the county governments. It is after that assessment of all those functions that the Treasury can also put numbers and costs to this function. We understand that the TA is still working hard to complete the functional assessments. However, the Treasury has gone ahead and done the cost of the functions based on what the functions cost in the past. So, it is very important to know that consequently, the Treasury has admitted that there is a possibility that some of the counties may not fully cover the entire services they are providing now from the money that will be allocated. This is because of the formula that is being used to allocate money to the counties. Owing to that, the initial Bill, not the one that has been submitted from the National Assembly, you will appreciate has a reference to holding counties harmless. In other words, some counties have services and functions which other counties do not have. For example, if you go to Kisumu, you will find the Ministry of Fisheries Development. You will not, probably, find the same Ministry in Mandera County. There are many examples of that nature. The national government has been financing those institutions in those departments in the past. Some of those functions have been devolved. So, there is likelihood that some of those counties may not get enough money based on that formula. Owing to that, they provided for some funds. After the discussions between the CRA, the Treasury and the National Assembly, the provision they originally made; funds for holding counties harmless or providing funds to ensure that residents continue to get services that they are getting were included in the shareable revenue and shared out. In this regard, our Committee did, in fact, have a meeting with the Treasury and the Cabinet Secretary has undertaken to come back to us on this matter before this Bill is finalized tomorrow. Mr. Speaker, Sir, the point that has been mentioned earlier by the Senate Majority Leader is that the total amount of money that this Bill seeks to allocate to the counties is Kshs210 billion, which represents 32 per cent of the national revenue. We also know that according to the Public Finance Management Act, this is based on the last audited accounts, which is, 2010/2011. That was a figure of around Kshs600 billion. We know that revenue today, in the estimated Budget for the coming financial year, is expected to be almost Kshs900 billion. This means that, going forward, whatever is going to be allocated to the counties is expected to increase annually. There is not a time that we expect that the revenues that will be allocated to the counties will go down. In this regard, we will, as a Committee, propose amendments to the Bill, specifically on Clause 5, that seeks to share any shortfall in revenues if they arise. This is because in our contemplation there should not be any shortfall. Mr. Speaker, Sir, the other important point that I need to mention with regard to this Bill is that the Senate has the singular mandate of ensuring that the interests of the counties are served. But in serving those interests, we should also be concerned or alive to the fact that whatever money is approved here for the counties, when it gets to the counties, must be used properly. Now, the beginning of that will be the Budget preparation. We have raised concern with the Treasury, that the counties may not have been well prepared in terms of preparing the budgets for the next financial year, based on this. What is happening is that before we have even passed the Bill which will allocate the revenue for the counties, the county governments have already prepared budgets The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate."
}