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{
    "id": 787899,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/787899/?format=api",
    "text_counter": 544,
    "type": "other",
    "speaker_name": "",
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    "content": "Financial Year 2017/2018 it was Kshs302 billion and this financial year it has proposed to allocate Kshs314 billion. In addition, there are quite a number of other proposals. The monies that we see here appear to be a lot, but it is not enough. In fact, we have been engaging the National Treasury and other stakeholders such as the Commission for Revenue Allocation (CRA), the Council of Governors (CoG), among others. However, we will never have enough money. Quite a number of other issues have been raised. Out of this Kshs314 billion, CRA had proposed a bigger figure. The CoG maintained the same figure although they wanted more money allocated from the Fuel Levy. Currently, 15 per cent of the Fuel Levy is allocated to counties. A proposal of allocation of 25 per cent of Fuel Levy to the counties was brought to us. Madam Temporary Speaker, the Kenya Roads Bill, 2017 (National Assembly Bills No.47 of 2017) is before the National Assembly. Funds raised under the Fuel Levy are normally shared in proportions which are in the current Act that has not yet been amended. A figure of 15 per cent was taken out of the allocation to other entities like the Kenya Urban Roads Authority (KURA), the Kenya Rural Roads Authority (KeRRA) and the Kenya National Highways Authority (KeNHA). Therefore, we thought it was not proper to raise this figure of 15 per cent to any other figure until that law is amended. Madam Temporary Speaker, counties have been getting sufficient amounts of money for the last six years we have had devolution. As I said, money is never enough. However, counties must collect money from their Own-Source Revenue (OSR). Counties have been almost dependent on the shared revenue from the national Government and neglected or ignored that part of their revenue. Under conditional grants, there is the Kenya Devolution Support Programme which is also supposed to help counties raise their revenues. Revenues must be raised where possible so that dependence on national revenue is limited. We, as a Committee, also notice that whereas there is a requirement to send money to the counties on monthly basis as per the schedule which this Senate passes, it has not been forthcoming because of lack of revenue and the Kenya Revenue Authority (KRA) failing to meets its targets. However, there was a proposal last time that came from the Cabinet Secretary (CS), Treasury, to amend the Division of Revenue Bill. In my view, it is never amended once it is passed by Parliament. With regard to shortfall in revenue collections, Clause 5(1) of this Bill provide as follows:- “If the actual revenue raised nationally in the financial year falls short of the expected revenue set out in the Schedule, the shortfall shall be borne by the national Government to the extent of the threshold prescribed in the Regulations by the Cabinet Secretary. (2) If the actual revenue raised nationally in the financial year exceeds the projected revenues set out in the Schedule, the excess revenue shall accrue to the national Government, and may be used to reduce borrowing or pay debts.” The proposal by the CS, in my view, is not feasible unless he wants to amend this Clause 5, which actually we, as Parliament, should resist because there was a reason this requirement. 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."
}