Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 89463,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/89463/?format=api",
    "text_counter": 100,
    "type": "speech",
    "speaker_name": "Mr. Mudavadi",
    "speaker_title": "The Deputy Prime Minister and Minister for Local Authorities",
    "speaker": {
        "id": 84,
        "legal_name": "Wycliffe Musalia Mudavadi",
        "slug": "musalia-mudavadi"
    },
    "content": " Mr. Deputy Speaker, Sir, I beg to move that Mr. Speaker do now leave the Chair. Mr. Deputy Speaker, Sir, I wish to thank you and this august House for giving me this opportunity to present both the Recurrent and Development Votes of my Ministry. As hon. Members are aware, my Ministry falls in the infrastructure development sector whose main role is to advice, co-ordinate service delivery and guide the operations of the 175 local authorities throughout the Republic. The main objective of our mandate is to empower and facilitate local authorities to enhance local governance and ensure efficient delivery of services. This is achieved through prudent financial management, ensuring accountability, transparency and putting in place mechanisms for citizen participation in local level governance. In line with the Ministry’s mandate, the utilization of the Ministry’s resources is geared towards contributing to economic growth and poverty reduction through the following activities:- 1. Acceleration of local authority reforms linked to improved budgeting, sound financial management practices and enhancement of revenue mobilization. 2. Participatory service delivery planning and implementation. 3. Capacity building. 4. Spearheading the implementation of the pro-poor development programmes in local authorities through the disbursement of funds for projects and programmes that address unemployment, economic recovery, poverty alleviation and regional development. 5. Development of policies, strategies and procedures to strengthen and institutionalize democratic and participatory community based decision making processes. 6. Formulation and implementation of policies aimed at promoting orderly urban development and addressing challenges of urbanization. 7. The development of retail fresh produce and wholesale markets in urban areas to improve internal trade and uplift the socio-economic well being of the residents. 8. Improvement of solid waste management in order to ensure sound environmental sustainability. 9. Provision of equipment and building quality human resources to mitigate against disasters and sustainable development at the local level. Mr. Deputy Speaker, Sir, to achieve these objectives, I am requesting the hon. Members to approve a total of Kshs17,087,466, 890 for my Ministry during the current financial year 2010/2011. Out of this amount, Kshs13,201,466,890 is for the Recurrent Expenditure which is broken down as follows:- Kshs12,300,000,000 for Local Authority Transfer Fund commonly known as LATF; Kshs512,864,000 for contribution in lieu of rates commonly known as SILOR; Kshs193,946,401 for personal emoluments and Kshs27,752,000 for rental charges; Kshs7 million for the Nairobi Health Board, leaving a balance of Kshs159,873,699 for operations and maintenance. The remaining Kshs3, 866,000,000 is for Development Expenditure. Mr. Deputy Speaker, Sir, SILOR is listed as a major component of my Ministry’s recurrent estimates; that is a contribution in lieu of rates. But this money actually belongs to local authorities. In addition, it is important to appreciate that the level of payment of rates is determined by the Ministry of Lands which carries out evaluation of properties in areas of jurisdiction of each local authority. To date, Government Ministries and departments owe local authorities approximately Kshs4 billion but only Kshs512,864,000 has been aside in the current budget. This low allocation is not only grossly inadequate but also causes serious financial problems to local authorities that have factored the money in their budgets. Mr. Deputy Speaker, Sir, under the Administration and Financial Management, a total of Kshs28,488,454,000 has been set aside. Out of this figure, Kshs22,266,924 has been allocated for personnel emoluments while Kshs6,229,500 is for operations and maintenance. My Ministry provides management support services which are geared towards enhancing administrative and financial capabilities. In this regard, the Ministry conducts both routine and extra-ordinary inspections into the affairs of all local authorities. The inspections are meant to reveal the weaknesses and trends in local authorities’ operations, systems and structures. This information is used as a basis for taking remedial measures in individual local authorities and also to help develop policies and strategies towards improving the sector. Inspections also serve as deterrent measures against financial mismanagement amongst those involved. As such, we focus a great deal of attention on ensuring that local authorities are well managed as a prerequisite for effective service delivery and local economic development. It is in view of the above that I would like to draw the attention of this House to the gross underfunding to this core function of my Ministry. I also wish to inform Members that we are talking to the Treasury with the hope that we can agree on how our concerns can be addressed. Mr. Deputy Speaker, Sir, let me refer briefly to the Kenya Local Government Reform Programme. A sum of Kshs23,331,979 has been set aside for the Kenya Local Government Reform Programme, out of which Kshs18,429,004 is personal emoluments and Kshs4,702,975 is for operations and maintenance. My Ministry is fully committed to the reform programme of the local government policy sector and local service delivery. To achieve these objectives, various reforms are being undertaken. Furthermore, the promulgation of the new Constitution is going to put heavy restructuring demands on the local authorities which will require substantial additional financial support. The low level of funding on operations and maintenance at Kshs4,702,975 coupled with the exit of the European Union financial support, will adversely affect planned reform activities in my Ministry. For this reason, we have already communicated our fears to the Treasury and asked for additional resources. In addition, our programmes are all being aligned to Vision 2030 and this requires more resources. Mr. Deputy Speaker, Sir, I have mentioned earlier, the main areas of concern of our financial and service delivery in local authorities. So far, the Local Authorities Integrated Financial System commonly known as LIFOMs has been successfully carried out in 83 councils. This is a computer assisted financial management system whose specific objective is to assist local authorities to harmonize and standardize their operations in order to improve efficiency, accountability and transparency in conducting financial operations. The Ministry has also developed and is implementing new accounting and reporting systems for local authorities which are being rolled out to other local authorities during the current financial year. The Ministry has also developed an inspection manual and a statutory reporting template on general acceptable way of accounting and audit practices, service delivery tools and treasurers’ manual. These are in addition to being proactive in monitoring budget preparation and implementation. Mr. Deputy Speaker, Sir, let me come back to the LATF. A total of Kshs12,300,000,000 has been allocated to LATF to be disbursed directly to all the 175 local authorities in accordance with the LATF Act and Regulations. This LATF was designed as a mechanism to supplement the financial services and facilities which local authorities are required to provide under the Local Government Act, Cap 265. LATF is, therefore, structured to provide both budget support and strong incentives to local authorities to improve their service delivery, financial management accountability and debt resolution. As hon. Members are aware, Mr. Deputy Speaker, Sir, LATF allocation is based on the following criteria as per LATF: A basic minimum lump sum of Kshs1.5 million for each local authority, the population of each local authority as per the 1999 Population Census and Urban Population of the local authority. For Local Authorities to qualify for the LATF, they must fulfil the following major conditionalities among others:- (a) At least 65 per cent of the allocation from service delivery account must be budgeted for expenditure. (b) Expenditure on personnel emoluments should not exceed 50 per cent of the total expenditure of the local authority. (c) From 1st July 2010, it is a mandatory requirement that all statutory charges payable by the local authority should have been paid within the year which they are due. Statement of actual receipt, expenditures, cash and bank balances up to 30th June 2010 must be submitted. A statement of abstract accounts for the financial year 2008/2009 must be produced. In the event a local authority fails to meet any of the above conditionalities, it will attract penalties. Mr. Deputy Speaker, Sir, Members are encouraged to acquaint themselves with LATF annual reports which give detailed information. These reports are distributed to this House and also published in the print media and the Ministry’s website. In order to enhance citizen involvement in the operations of the local authorities in the year 2001, my Ministry introduced the concept of participatory planning through preparation of the Local Authority Service Delivery Action Plan (LASDAP). This reform initiative creates a mechanism for interaction between local authorities and their clients or stakeholders on financial information, exchange and planning of projects, as well as their implementation. Starting from the financial year 2006/2007, local authorities are required to utilize 20 per cent of the capital expenditure for pro-poor projects. In addition to these measures, local community contracting for provision of infrastructural services has been embraced to create opportunities for employment at the local level. Mr. Deputy Speaker, Sir, in the current budget, a total of Kshs53, 953,192 is allocated to the rehabilitation of street families. As hon. Members recall, the Children’s Act (2001) mandated all local authorities to safeguard and promote the welfare of the marginalized through the establishment of rehabilitation programmes and creation of departments to deal with the rights and welfare of street families. In order to provide the necessary policy framework on this, my Ministry initiated the Street Families Rehabilitation Programme in 2003. With the growing numbers of street families currently estimated at 300,000 million countrywide, there is an urgent need to build the capacity and empower local authorities to initiate sustainable programmes that will eradicate this problem. So far, the Ministry has rehabilitated 13,000 street families. This daunting task was placed on us because street families had become a security risk to residents and visitors in our urban centres. The success of the rehabilitation process has been made possible through provision of scholarships to 9,000 youths in vocational skills and over 400 children in formal education; primary and secondary, in partnership with local authorities, other Ministries and development organizations, such as United Nations Childrens Fund (UNICEF), International Labour Organization (ILO), GOAL Kenya as well as faith based organizations. I urge these and other partner organizations to redouble their efforts in these programmes. Mr. Deputy Speaker, Sir, I now come to the Development Vote. The total amount allocated for the Development Expenditure in this year’s budget is Kshs3, 886,000,000. These funds will be applied to the following projects:- (i) Access Roads – For this item, a total of Kshs331 million has been set aside to be spent as follows: Kshs231 million for ongoing road projects and Kshs100 million to clear some of the pending bills under the Kenya Urban Transport Infrastructure Programme (KUTIP). Some of the ongoing projects are in Kwale, Nanyuki, Sagana, Bomet, Kegoe, Mudete, Muthurwa access road and the missing links. The amount allocated to the Ministry will only meet part of the many certificates that are pending payments. This is a matter we have communicated to the Treasury for further consideration. (ii) The Construction of Bus Parks and Storm Water Drainage – A total of Kshs236, 935,000 has been allocated to this item which is an ongoing programme under my Ministry. For this reason, we will utilize Kshs116, 935,000 to pay some of the certificates on bus parks while Kshs120 million to part pay, payments of certificates on storm drainage projects in Mombasa and Webuye. (iii) Mr. Deputy Speaker, Sir, there is also the aspect of solid waste. Towards this goal, a total of Kshs150 million has been allocated as counterpart funding for projects supported by the Government of France through Agence Francaise de Development (AFD) in Mombasa and Nakuru. At the same time, the Ministry is preparing a broad policy position which will then be adopted for solid waste management in all other local authorities. (iv) Fire disaster and prevention – in this regard, the Ministry has set a sum of Kshs298, 064,430 for the support of local authorities in equipping and building their disaster management support. (v) The National Urban Development – here, I would like to state that some funds have been allocated in the budget to facilitate digital mapping and preparation of urban development plans. So far, digital mapping will be undertaken in Eldoret, Bungoma, Garissa, Othaya and Mtwapa on a pilot basis. This Ministry is also preparing an integrated strategic plan for Bomet, Maralal, Mariakani and Kakamega. (vi) Primary Education in Poor Urban Areas of Nairobi – under agreement with KFW of Germany, my Ministry is undertaking the development of new Kiumbuini and Kinyanjui Road Primary Schools. In this respect, the Ministry has allocated Kshs170 million and expects the schools to be completed by December as part of a debt-swoop agreement. (vii) Kazi Kwa Vijana – the Ministry has set aside Kshs450 million which will go to the local authorities that will be charged with the implementation of this programme. (viii) Economic Poverty Recovery – the majority of the current retail markets are in a state of despair and as a first step, we will spend a total of Kshs800 million towards the rehabilitation and completion of 19 ongoing retail markets that are outside the ESP and also outside the Medium Term Programme for 2010/2011. Mr. Deputy Speaker, Sir, I also wish to state that over and above this, in order to improve internal trade accessibility to markets as well as orderliness in our urban centres, a total of Kshs1 billion has been allocated for market development in various parts of the country. Hon. Members will recall the rationalization of Muthurwa Hawkers Market which helps to decongest parts of the Central Business District (CBD) and we still have to improve this because we need additional access for roads to make the Muthurwa area much more efficient. The Kshs1 billion cited above is also intended to deliver proper market infrastructure to our people. Mr. Deputy Speaker, Sir, wholesale market hubs, Kshs536 million will be utilized towards the completion of four ongoing wholesale market hub projects in Karatina, Kongowea, Gakoromene in Meru and Kakamega. In the current financial year, Kshs464 million will be utilized towards the development of seven wholesale markets and seven local authorities to provide a conducive business environment for our small scale traders. We hope that these efforts will ultimately be augmented by contributions from individual local authorities, private investors and development partners. I now beg to move that Parliament approves a sum not exceeding Kshs17, 007,466,890 to be issued from the Consolidated Fund to meet the expenditure of my Ministry’s programmes for the year ending 30th June 2011. Mr. Deputy Speaker, Sir, let me re-emphasize once again that SILOR which has been used as part of setting a ceiling for the Ministry of Local Government is actually a misnomer because SILOR does not belong to the Ministry of Local Government. We are merely a transit Ministry and this money belongs to local authorities. We would, therefore, like Parliament to take note of this. The other aspect is that, LATF which is used to give the impression that the Ministry of Local Government has a very huge Vote is again not money for utilization by the Ministry of Local Government. That is money that goes straight to the respective local authorities. So, in reality, if one knocks off the SILOR and the LATF, you will realize that the Ministry of Local Government is grossly under-funded. With those few remarks, I beg to move and urge Mr. Haji to second."
}