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{
    "id": 662173,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/662173/?format=api",
    "text_counter": 204,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "This brings the total allocation to county governments to Kshs304.2 billion which is equivalent to 33 percent of the most recently audited revenues approved by the National Assembly. Cumulatively, at the end of the Financial Year 2016/17, the amounts transferred to county governments since the roll out of the devolved system of Government in Kenya, will be in excess of Kshs1 trillion, a remarkable support to service delivery, and a clear demonstration of the Government’s commitment to ensure that devolution succeeds. Since the establishment of county governments in 2013, we have continued to receive complaints from citizens and business enterprises on the haphazard manner in which user fees, service charges and property rates are being levied at the county level without participation by key stakeholders or public consultations. We have witnessed a number of counties introducing multiple regulations, forcing businesses to pay for numerous licences and permits, especially between jurisdictions. Such regulatory practices are clearly contributing to an unfriendly business environment, with adverse implications for investment, employment and economic growth. At the same time, certain county revenue instruments – such as cess may be in violation of the Constitution, while others – such as the Single Business Permit may have a weak basis, under the current legal environment. Towards this end, the National Treasury, jointly with all the relevant State agencies as well as the Council of Governors, has commenced a process to develop a National Policy and Legal Framework to guide county governments’ revenue raising measures particularly on own- source revenue. This exercise is specifically intended to promote a conducive business environment and ensure compliance with Article 209 (5) of the Constitution, as well as better coordination and a well-defined mechanism for regulating business activity countrywide. The exercise is also intended to support efforts by county governments to enhance their own-source revenues, reduce the tax gap and improve the alignment between county budgets and policy priorities. Hon. Speaker, allow me to emphasize that all organs of Government ought to abide by the resolutions of the Fifth National and County Government Co-ordinating Summit held in Sagana in February 2016. This summit adopted a policy of austerity aimed at eliminating wastage so as to release more resources from recurrent expenditure to development expenditure."
}