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{
    "id": 513238,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/513238/?format=api",
    "text_counter": 239,
    "type": "speech",
    "speaker_name": "Sen. Billow",
    "speaker_title": "",
    "speaker": {
        "id": 260,
        "legal_name": "Billow Adan Kerrow",
        "slug": "billow-kerrow"
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    "content": "Mr. Speaker, Sir, let me clarify from the outset that the Commission on Revenue Allocation (CRA) forwarded its recommendation for the ceilings for the 2014/2015 to this House. However, the recommendations came on 30th September and our Committee felt that it may be too late to table them because some of the counties had already done their budgets and appropriation accounts. I also want to clarify that CRA is mandated under Article 216 to give recommendations relating to financial management at any time. It is important that those recommendations include those that ensure prudent financial management by the counties. Mr. Speaker, Sir, the court held that the recommendations by CRA, although they were not binding, were lawfully issued. That circular was legal. At no time did the court declare those circulars a nullity. However, our understanding that the ceilings are not binding means that the ceilings can actually be rediscussed or renegotiated. This is our understanding of the point. Therefore, when the court refused to declare those circulars null and void by dismissing the prayers, it is very clear that the courts were saying that the CRA was within its mandate to issue a circular in accordance with Article 216. The issue raised by Members that this circular is an illegality is not correct Mr. Speaker, Sir, when the CRA and Controller of Budget last year came up with those ceilings, we agreed with them that it is in keeping with prudent financial management and that it also provides a structured basis for sharing out that money for the new administrative structures. This year, it is going to come in the Division of Revenue Bill. There will be Kshs45 billion for new administrative structures including the governors’ officer, county assemblies and all those new offices created. How do you share out this money? Last year, there are assemblies that had asked for Kshs1.1 billion, others asked for Kshs900 million and others got only Kshs300 million. Therefore, to avoid that disparity, a structured basis for computing the figures was provided. That is why we agreed with them at the time that the ceilings were in order. In fact, we went even further and proposed an amendment to the Public Financial Management Act in that regard, which has since been adopted. Mr. Speaker, Sir, the point raised by Sen. (Dr.) Khalwale is the timeline for the remaining quota from April to June. The timelines depend on the requisitions that will be met based on the returns that they submit. We have directed the CRA to ensure that they get adequate money; which means that they should review the amount of money they are 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."
}