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{
    "id": 897127,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/897127/?format=api",
    "text_counter": 35,
    "type": "speech",
    "speaker_name": "Sen. (Eng.) Mahamud",
    "speaker_title": "",
    "speaker": {
        "id": 373,
        "legal_name": "Mohammed Maalim Mahamud",
        "slug": "mohammed-mahamud"
    },
    "content": "Mr. Speaker, Sir, I beg to move that the Division of Revenue Bill (National Assembly Bills No. 11 of 2019) be read in the Senate the Second Time. The 2010 Constitution established two levels of government. It requires that all national revenues be shared between the two levels of government. Articles 203 and 218 of the Constitution provides for equitable sharing of revenue raised nationally between the national and county governments. The Division of Revenue Bill provides for the allocation for Financial Year 2019/2020. It details the proposed sharable revenue, national Government share of revenue, county equitable share of revenue and conditional grants and the equalization fund. Mr. Speaker, Sir, as the House recalls, the Budget Policy Statement (BPS) being a precursor to the Annual Division of Revenue Bill Act, sets the fiscal framework in relation to equitable revenue sharing between the two levels of government. The Annual Division of Revenue Bill (2019) is prepared in accordance with Article 202 of the Constitution which expressly makes it mandatory for the national raised revenue to be shared equally between national and county governments. The equitable share of the revenue raised nationally that is allocated to county governments is guaranteed to be at least 15 per cent of the revenue collected by the national Government and is further calculated on the basis of the most recent audited accounts of revenue received and approved by the National Assembly. This Bill has passed through the National Assembly. The National Assembly approved the Division of Revenue Bill (2019) recommending an equitable share of Ksh310 Billion to county governments and Kshs1.561 trillion to national Government. This is below the current allocation to counties for Financial Year 2018/2019, which was KShs314 billion. This is Kshs4 billion below the current allocation of the financial year we ending today. Mr. Speaker, Sir, in considering the Division of Revenue Bill, this House recalls that we passed a resolution that the sharable revenue between the two levels of government should stand at Kshs335 billion for county governments. A review of the Bill before us from the National Assembly indicates that the baseline used by the national Treasury is Kshs314.96 Billion as opposed to Kshs314 billion. They should have started from Kshs314. However, they started from Kshs304 billion arguing that the figure of Kshs314 was reduced by Kshs9 billion during the supplementary which was appropriated by the National Assembly some months ago. The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor, Senate."
}