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{
    "id": 916534,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/916534/?format=api",
    "text_counter": 94,
    "type": "speech",
    "speaker_name": "Sen. (Eng.) Mahamud",
    "speaker_title": "",
    "speaker": {
        "id": 373,
        "legal_name": "Mohammed Maalim Mahamud",
        "slug": "mohammed-mahamud"
    },
    "content": "The counties have therefore been placed in a precarious position as the option of vote on account can only be exercised with respect to funds already present in the respective County Revenue Funds. As there will be no transfer of any revenue raised nationally to the counties in the absence of a Division of Revenue Act, counties will have to run their affairs with a fraction of the funds they actually require. This will have an adverse impact on the ability of counties to effectively discharge their functions as set out under the Constitution. It is with great concern that we observe that despite the defeat of the Division of Revenue Bill, 2019, the National Assembly proceeded to introduce, consider and pass the Appropriation Bill, 2019. The Bill was assented to by the President on Friday 28th June, 2019. Article 221(3) of the Constitution provides that the Appropriation Bill is passed on the estimates approved by the National Assembly. Further, Section 39 of the Public Finance Management (PFM) Act provides that the National Assembly shall consider the national budget estimates in accordance with the Division of Revenue Act and the resolutions adopted with regard to the Budget Policy Statement (BPS). Mr. Deputy Speaker Sir, the Division of Revenue Bill is the foundation upon which the budgeting process, including the determination of expenditure of public funds both at the national and county governments level, is premised. Both levels of Government are therefore precluded from considering and approving any legislation dependent upon the division of national revenue between the national Government and the county government, including the County Allocation of Revenue Bill, the Appropriation Bill and the respective County Appropriation Bills. The passage and assent to the Appropriation Bill in the absence of a Division of Revenue Act, is a flagrant contravention of the provisions of the law. This unlawful action not only puts to question the legal veracity of any action done under the Appropriation Act, 2019, but also undermines the national values set out under the Constitution and especially the duty to uphold the rule of law and good governance. Further, the enactment of the Appropriation Bill, 2019, contravenes the public finance principles espoused under Article 201(1) of the Constitution and, in particular, the duty to ensure that revenue raised nationally shall be shared equitably among national and county governments. By enacting the Appropriation Bill, 2019, there has been a purported allocation of revenue to the national Government without a similar allocation to county governments. The national Government will therefore continue to discharge its functions at an optimal level while counties will be hard pressed to provide even the most basic services. This contravenes the objects and principles of devolution and, in particular, Article 174(g) which provides that one of the objects of devolution is to ensure equitable sharing of national and local resources throughout Kenya and, Article 175(b) which requires county governments to have reliable sources of revenue to enable them govern and deliver services effectively. Mr. Deputy Speaker Sir, in light of the foregoing, the Senate must caution any State organ charged with the implementation of the Appropriation Act, 2019 including the National Treasury and the Controller of Budget (CoB), that any action taken under 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."
}