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"speaker_name": "Sen. (Eng.) Mahamud",
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"legal_name": "Mohammed Maalim Mahamud",
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"content": "finalized to date. The law under Article 217 of the Constitution requires that Parliament, by resolution of both Houses, adopts a new formula as submitted by Commission of Revenue Allocation (CRA). The House is aware that we have gone through that substantially, but because of the situation we are in today, we have not been able to finalise it. The County Allocation of Revenue Act (CARA) has been introduced as required under Article 218(b) of the Constitution, which required that the Bill be introduced two months before the end of the financial year so that counties can do their budgets. Mr. Speaker, Sir, Article 217(7) of the Constitution provides that a basis that has been approved by Parliament shall be binding until a subsequent resolution is approved. For us as a Committee, we are of the view that the second generation formula can still be used because the other one has not been put in place. The process thus required under the third generation is very rigorous because the third generation introduces different parameters. In fact, the parameters are very elaborate and as good as they are, we have not been able to finalise it. Before the onset of COVID19, we were planning to have a series of engagements with Senators and stakeholders and sessions to elaborate so that we can finalise the formula. Since we have not finalized, we are proposing as per Article 217 of the Constitution, the Bill that had already been approved by Parliament, that the second generation be utilised. As you are aware, the other part of the Bill is the issue of Nairobi City County and pursuant to Article 187(2) of the Constitution and Gazette Notice No. 1609 of February 2020, some functions of Nairobi County government as set out in part two of the Fourth Schedule of the Constitution were transferred to the national Government."
}