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"id": 1625612,
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"content": "THE EQUALISATION FUND APPROPRIATION BILL, (SENATE BILLS NO.7 OF 2025)"
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"id": 1625613,
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"type": "speech",
"speaker_name": "Sen. Tabitha Mutinda",
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"content": "Thank you, Madam Temporary Speaker. I beg to move- THAT the Equalisation Fund Appropriation Bill, 2025, be read a Second Time. The Bill was published before this House and was first read on the 27th June, pursuant to our Standing Orders. The Equalisation Fund is also established under Article 204. It is not the first time I am moving the Equalisation Bill. It is very critical, especially to the marginalized areas that have been focused on. I have always stated that the main goal of the Equalisation Fund is to facilitate on issues that cut across the health sector, roads, water and electricity, more so narrowing to the marginalized regions and areas. According to the Commission on Revenue Allocation (CRA), we have 1,424 marginalized areas that are spread and cut across the 34 counties. The Equalisation Bill, as I have said, is not new to this House. It provides for appropriation of Kshs16.8 billion from the Equalisation Fund for the Financial Year 2025/2026. The proposed amount should be shared among the 34 beneficiary counties based on the second policy on marginalization. Annexed on the Equalisation Fund Appropriation Bill (Senate Bills No.7 of 2025) allocation, of the 1,424 marginalized areas which had been identified, Kshs504,000,000 is to be allocated to the Equalisation Fund Advisory Board. The Kshs504,000,000 is for administration costs pursuant to the Public Finance Management (PFM) Regulations, 2015. Madam Temporary Speaker, the Committee carried out public participation on the Bill in accordance with our Standing Orders. We invited various stakeholders. The Committee on Finance and Budget has stakeholders we regularly engage with, including the Cabinet Secretary for the National Treasury and Economic Planning, the Commission on Revenue Allocation (CRA) and the County Assemblies Forum (CAF). We also had a special stakeholder: the Old Pumwani Landlord Community. The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."
},
{
"id": 1625614,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1625614/?format=api",
"text_counter": 365,
"type": "speech",
"speaker_name": "Sen. Tabitha Mutinda",
"speaker_title": "",
"speaker": null,
"content": "The Committee made various observations regarding the Equalisation Appropriation Fund Bill (Senate Bills No.7 of 2025). The Bill provided for allocation per county and, subsequently, per constituency. The projects to be funded are only in the identified marginalised areas. A review of the projects identified by the Equalisation Fund Advisory Board as of June, 2024 indicated that 1,415 projects have been proposed for implementation under the Second Marginalisation Policy. The Equalisation Fund has two Appropriation Acts in place. The Equalisation Fund Appropriation Act No.3 of 2018 amounts to Kshs12.4 billion, being the allocation for the financial years 2014/2015, 2015/2016 and 2016/2017 implemented through the first Marginalisation Policy. Madam Temporary Speaker, these financial years are nearly 10 years old. The challenge we have faced with the Equalisation Fund is the reimbursement to beneficiary counties or marginalised areas. That is why the Kshs12.4 billion was the first allocation."
},
{
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"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1625615/?format=api",
"text_counter": 366,
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"speaker": null,
"content": "[The Temporary Speaker (Sen. Mumma) left the Chair]"
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"text_counter": 367,
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"speaker": null,
"content": "[The Temporary Speaker (Sen. Abdul Haji) in the Chair]"
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"id": 1625617,
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"text_counter": 368,
"type": "speech",
"speaker_name": "Sen. Tabitha Mutinda",
"speaker_title": "",
"speaker": null,
"content": "Mr. Temporary Speaker, Sir, the second is the Equalisation Fund Appropriation Act No.7 of 2023, which allocated Kshs10.3 billion for the recent financial years 2021/2022 and 2022/2023 under the Second Marginalisation Policy. However, implementation of the Act is yet to be fully realised due to disbursement of the funds. As of June, 2024, the only amount disbursed is the first allocation of approximately Kshs12.4 billion. Remember, the Equalisation Fund was set to operate within a 20-year period. However, the Fund currently has outstanding arrears amounting to Kshs46.5 billion out of Kshs59.96 billion. This implies that only 13.4 per cent of the Fund has been disbursed since its inception. The lack of disbursement of funds has been caused by the Ministry of the National Treasury and Economic Planning. The disbursement of these funds has not been honoured by the Cabinet Secretary. If the funds had been disbursed as scheduled, prioritised and allocated, we would not be discussing arrears amounting to Kshs46 billion today. The Committee, having considered the Bill and analysed stakeholder submissions, made a few recommendations. One is the amendment to Clause 3 of the Bill by deleting the expression “204 (1)” and substituting it with “204 (2)”. This is because the basic services to be provided via the Equalisation Fund are provided in Article 204 (2) of the Constitution. Secondly, amend the schedule to the Bill in column two of Item 13, with respect to Kitui County, by deleting the word “Kisumu” and substituting it with “Kitui”. The emphasis regarding the Equalisation Fund is primarily on the arrears. As a Committee, we look forward to meeting the Cabinet Secretary, Hon. John Mbadi, next week, Thursday morning. This will allow us to engage him on the issue of the Equalisation Fund. It is a Fund that should have achieved its purpose, but delays have occurred because disbursements have not been honoured. The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."
},
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"text_counter": 369,
"type": "speech",
"speaker_name": "Sen. Tabitha Mutinda",
"speaker_title": "",
"speaker": null,
"content": "Mr. Temporary Speaker, with those few remarks, I thank my colleagues at the Committee level, led by my Chair, Hon. Sen. Ali Roba, and the rest with whom we worked very closely. I also thank the Secretariat, led by Gitonga, Beverly, Lucy and the team, with whom we worked closely on Committee matters. At this time, since we still have another timely Bill to consider, I call upon Sen. Cherarkey to second. I thank you."
},
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"id": 1625619,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1625619/?format=api",
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"type": "speech",
"speaker_name": "Sen. Cherarkey",
"speaker_title": "",
"speaker": null,
"content": "Thank you, Mr. Temporary Speaker, Sir. It is good to see you again in this new week. I am impressed with how Sen. Mutinda is pronouncing my name. She is pronouncing it with a British accent or is it an American accent? I commend Sen. Mutinda for the good job she is doing as the Vice-Chairperson. That is why I said a few hours ago that she continues to distinguish herself as one of the prolific debaters of this session. I can see she is learning the ropes too fast. I hope that in any position she aspires to, she will be able to maintain her debating prowess, as she always carries out her work with the precision of a military marksman or markswoman. As I second, the issue of Equalisation Fund---"
},
{
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"speaker": null,
"content": "(Sen. Nyamu spoke off record)"
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"type": "speech",
"speaker_name": "Sen. Cherarkey",
"speaker_title": "",
"speaker": null,
"content": "Sen. Karen Nyamu, I attended one of the best schools in this country. I am an alma mater of Kapsabet Boys High School, the only school that has produced two presidents: the late His Excellency Daniel Toroitich Arap Moi and the fifth President of the Republic of Kenya, Dr. William Samoei Arap Ruto. That is the fifth president and we are going to give him two terms. Possibly, the seventh president will be yours truly, of course. In English I say she does her work with an eye of military marksman or markswoman because the military has both women and men. I do so to show appreciation to our women leaders led by Sen. Mutinda. This is a very fairly short Bill. I agree with the Mover. I do not know what is happening with the National Treasury. They are putting us in a crisis mode. The Kshs46.5 billion that is owed to the Equalisation Fund continue to cripple provision of services. As you are aware, Article 204 of the Constitution of Kenya, 2010 stipulates that these funds are to be used for basic needs such as hospitals and roads, among others. Mr. Temporary Speaker, I request the Standing Committee on Finance and Budget and the Senate Business Committee (SBC) to schedule a Committee of the Whole, chaired by you. We need to summon the Cabinet Secretary for the National Treasury and Economic Planning, Hon. John Mbadi, to appear before us and address the issue of the 424 marginalised areas, including your own county, Garissa County. The other day, extinguishing a fire in Masjid, one of your town’s markets, was a problem. I am informed the firefighters are not well trained, which is very unfortunate. On these 424 marginalized areas of 34 counties, why is it that Kshs46.5 billion is yet to be released? This will continue to cripple services. Over the weekend, one of the artists from Nandi County called Jantex, from a place called Cherondo, which is in Kapchorwa Ward, between Kapchorwa and Lesos The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."
}
]
}