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{
    "id": 605772,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/605772/?format=api",
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    "content": "the Commission on Revenue Allocation (CRA), the Kenya Institute for Public Policy Research and Analysis (KIPPRA) and other institutions to develop a more dynamic and robust formula that, hopefully by the end of this year, should be before this House. Mr. Temporary Speaker, Sir, Members of my Committee visited countries like India to look at the kind of formula it uses. India, in fact, has a very good formula which is more advanced, more complicated and more equitable. That is where we want to go in future. We are also looking at the situation in other countries and we will provide a new formula for the next financial year. However, for this financial year, the formula looks at a number of parameters; among them is population which has 45 per cent, area which has 8 per cent, poverty index has 20 per cent and an equal share of 25 per cent with a 2 per cent for physical. That is the formula that we have used in the past two years and it will also be applicable to this financial year. Mr. Temporary Speaker, Sir, the Constitution, in Article 203, also provides for specific criteria that must be taken into account in determining how revenue should be allocated. This is also clearly set out in the Bill. The Bill goes into details of how the criteria have been addressed. That is on page 71 of the Bill. For example, how have developmental needs of county governments been taken care of? In looking at developmental needs of counties, the formula incorporates parameters; the ones that I have just mentioned, which measure the expenditure needs of the counties. Therefore, the Bill looks at economic disparities among other issues. So, the parameters are intended to address the issues provided for in Article 203 of the Constitution. Mr. Temporary Speaker, Sir, Clause 5 of the Bill looks at the conditional allocations. Last year, we only had conditional allocations on Level 5 hospitals. This year, we have several items where conditional revenue will be used in each of the county governments. This is provided for in the Second Schedule and includes Level 5 hospitals and allocation for free maternal health care. We also have a conditional allocation to compensate county health facilities for forgone user fees; revenues that they do not charge but they will be compensated for. We also have conditional allocations for Road Maintenance Fuel Levy Fund and 15 per cent of it is allocated in this Bill to the counties for the maintenance of county roads. It also has conditional allocations towards respective county emergency funds. My Committee, in its report that will be submitted before we go to the Committee of the Whole, intends to make amendments. Among the amendments that we are likely to make is on that conditional allocation which, as you are aware, in the mediation the amount was not approved. Therefore, there will be no conditional allocation for emergency funds. Then there is conditional allocations financed by proceeds of loans or grants from development partners to each county government. These comprise conditional allocations financing loan from the World Bank to supplement financing of county health facilities. We also have some grant from the Government of Denmark to supplement financing, again, for health facilities and other loans and grants from other development partners. These are all set out in the Third Schedule."
}