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"content": "Therefore, the CRA is required by law, under the Constitution, once the Bill is published to give us a recommendation. According to the Public Finance Management (PFM) Act, this requires that CRA provides a recommendation six months before a financial year ends. That means that by December, they must have submitted it. So that means that in December last year, they submitted a recommendation. That recommendation is the one that is in the Bill on page 21. Page 21 has a table which shows what the CRA recommended. The law requires, in Article 218, that if there is any deviation between what the CRA recommended and what is being proposed by the national Government and Treasury, there must be an explanation. The rest of the sections from Table No.3 downwards explain the difference between what the CRA had proposed at the time, an equitable share of Kshs282 billion and the Treasury had proposed Kshs258,008,000,000 and so forth. What happened since – I need to explain this so that Members appreciate – is that the law provides for Inter-governmental Budget and Economic Council chaired by the Deputy President - This one brings together all the executive arms of the Government. At that Council, they negotiated and discussed the recommendations from the CRA plus what the Treasury has proposed and they agreed on the figures which are in the Bill. These are the figures I have just read to you of Kshs258,008,000,000 plus Kshs Kshs25,733,685,204 Conditional Fund. This is what they have agreed upon as the CRA. We asked them, in accordance to Article 205, to give us their recommendations and they did. In your report, you will find in a letter dated 8th, CRA recommendations which I will read. In accordance with this provision, the Commission on Revenue Allocation makes the following recommendation on the Division of Revenue Bill, 2015; that Kshs978.692 billion be allocated to the national Government, Kshs6 billion be allocated to the Equalization Fund and Kshs258 billion be allocated to the county governments as equitable share. So, as far as the CRA recommendation is also concerned, they are in concurrence with what is in the Bill. The last recommendation is exactly that amount. Mr. Deputy Speaker, Sir, we also had a meeting with the Council of Governors and a copy of their submission is also attached to the Report. They advised us that they are satisfied. It is a lengthy report. What they wanted was Kshs349 billion. They looked at what CRA recommended, they went into IBEC and negotiated and eventually, they agreed. It states:- “The Council of Governors maintains that this allocation of Kshs258 billion is still not enough for the operation of the counties but it is a figure that was agreed upon by different institutions. The Council of Governors submits that it will work with it”. Also, as the Council of Governors, they expressed satisfaction with the Kshs258 billion. In short, that is the status of the contributions made by the other stakeholders on this Bill. Having deliberated on this matter and received all those representations and cognizant of the guardian role of the Senate in safeguarding the interests of counties and taking into account the efforts and involvement of the Senate in negotiating non- 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."
}