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{
    "id": 533672,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/533672/?format=api",
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    "content": "expressed by a number of assemblies on how exactly an assembly can get money from the county government or to be specific, how much money should be allocated to the county assemblies: Is there a formula or a percentage? At that time, the county governments were new and there was no specific basis for determining how much money should go to an assembly. In the second year, the Commission on Revenue Allocation, (CRA) pursuant to the powers conferred on them in Article 216 of the Constitution, came up with a structured basis for determining how much money can go to an assembly. They based it on a simple criterion that within the resources that go to a county government, there is money specifically earmarked for the new administrative structures in counties. The new administrative structures included the county executive which includes the governor, the deputy, the CECs, chief officers up to ward administrators. On the assembly side, we have the Speaker, MCAs and staff. The other employees of the county government are functions that have been transferred within their own pay arrangements and so have their own votes. For this new structure, in allocating money between the national and the county governments, there is an amount of money that is determined on the basis of how much it costs to run the new structures. This amount was determined between the national and county governments in 2013/2014 and placed at Kshs30 billion. In the next financial year, this amount is expected to be Kshs45 billion. The Kshs30 billion is part of the Kshs226 billion that was allocated to county governments. That is the amount which has to be shared between the county assemblies and the county executive so that they can use it to finance their structures. Therefore, CRA came up with a basis of determining how much of the Kshs30 billion will go to the county assemblies and how much will go to the county executive. They did this on the basis of the components of the structures of the county assembly. What are the components or the make-up of the county assemblies? We have the Speaker, MCAs and staff. We also have sitting allowances, salaries, operations and maintenance. So they determined how much it amounts to for a particular county. They did the same for the county executive. They took the cost of the salary of the governor, the deputy, the CECs including their allowances, operations and maintenance and put a cost on it. Therefore, the Kshs30 billion was shared out, Kshs17 billion to the county assemblies and Kshs13 billion to the county executives in the 47 counties. That figure, therefore, is what we are now calling the budget ceilings of the county governments’ recurrent expenditure. They prepared a booklet for each showing what goes to the assembly and what goes to the executive. They issued a circular in April, 2014 recommending a ceiling as required in Article 214. Mr. Temporary Speaker, Sir, this, they believed and we also believed as a Committee of Finance, Commerce and Budget that it was necessary to set a ceiling on the budget between the two arms of Government so that there is a structured determination of how the allocation of the new administrative structures can be shared out. It was also felt necessary to minimize the wastage in county assemblies at that time. In the previous year when the ceilings were not there, some county assemblies asked for Kshs1 billion and others asked for more. It was an arbitrary request for money from the executive. There 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."
}