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{
    "id": 644427,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/644427/?format=api",
    "text_counter": 243,
    "type": "other",
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    "speaker": null,
    "content": "It is based on the assumption that a number of the expenditures are similar for all county governments to some extent. However, going forward, we believe that in the next formula, it should not be difficult to determine the actual cost of providing those basic services in each of the counties, which is something that we can use in future. Mr. Temporary Speaker, Sir, the third parameter is poverty. A poverty index provides a measure of welfare of citizens. It is a very good parameter because it looks at the extent of the economic and environmental disparities that exist between the counties. It is a parameter that uses the poverty gap index which is based on the statistics that have been provided by the Kenya Bureau of Statics (KeBS). In effect, the poverty gap measures the extent or severity of poverty. It ensures that counties with the poorest of the poor get a higher allocation. So, this parameter guarantees allocations to disadvantaged areas in particular but the figures will be spread out to all the counties. It is only that relatively, some counties have higher poverty gaps than others. In the previous year, we had it and it is 20 per cent in the current allocation. The Commission for Revenue Allocation (CRA) has recommended that it be reduced to 18 per cent because some of the other factors will also address some of the challenges faced in this category in this parameter. Then, there is land area. A county with a large area is faced with additional administrative costs to deliver comparable standards of service to its citizens. The size of a county, therefore, as a parameter, is important because it compensates the counties for the additional costs incurred in providing services. An example is my county which is 26,000 square kilometres. Therefore, the cost of providing services in that area is relatively higher than other counties which have a smaller area. However, in the first formula, there was a capping of the land size but not in this formula. Regarding the fiscal responsibility, county governments receive transfers that they collect and utilize public resources. So, fiscal responsibility looks at the ability of a county to generate its own revenue and also utilize the resources that have been sent to the county in a very prudent manner. So, the first formula has allocated 2 per cent and this time, we are also allocating 2 per cent. The allocations will enable counties to set up appropriate financial management systems to ensure prudent fiscal management. The last is the development factor which considers access to water, electricity and roads and to capture economic disparities and developmental needs of counties. This is a new parameter that the CRA has recommended. It complements the one of poverty and also ensures that counties with the greatest developmental needs get additional resources to bring services to the level enjoyed in other counties. Of course, the 1 per cent that we are recommending here is a pretty small amount but it is a gesture, nonetheless, symbolic that will help those counties appreciate that some money has been set aside. It goes to all counties but it is relatively higher for counties with those needs in those particular areas of infrastructure that I have mentioned. Those are the parameters that we have looked at and we believe that those six parameters and the weights that have been given by the CRA are reasonable and that is what we are recommending. As I mentioned earlier, this formula is critical and we have 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"
}