25 Feb 2021 in Senate:
Mr. Speaker, Sir, we turn to one critical area where we look at the vertical division of revenue. The projected shareable revenue is Kshs1.775 trillion. The National Treasury proposes an allocation of Kshs409,881,000,000 to county governments for the Financial Year 2021/2022. This is inclusive of county equitable share which is proposed at Kshs370 billion. You will realize that the Chairman was hiding because we had a protracted battle. I was baptized by fire. My first assignment as the Chairman was not easy. Having said that, it was good because everybody, even the serious ‗Team Kenya‘ got what they wanted. We ...
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25 Feb 2021 in Senate:
Thank you, Mr. Speaker, Sir. The Senator for Laikipia, my good friend was in the more serious team. It has been noted that though the county equitable share has increased in nominal numbers as a percentage of ordinary revenue, it has consistently dropped from a high of 22.5 per cent in the Financial Year 2015/2016 as projected, low of 20.84 per cent in the Financial Year 2021/2022. It is further projected to drop to 14.9 per cent in the Financial Year 2023/2024. This is where the BBI report comes in to anchor the 35 per cent in the Constitution.
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25 Feb 2021 in Senate:
The Committee noted the downward trend. I would like to look at the county own-source revenue. It is sad that we noticed what the County Public Accounts and Investments Committee (CPAIC) has also noted that there is a trend of decline in the own-source revenue collections by the counties. This poses a risk of county budgeting and eventual service delivery. Counties continued to accumulate pending bills. One of the reasons we hired Sen. Mutula Kilonzo Jnr., to be our legal representative in the leadership meeting which I hope had a good verdict is because we need to amend the Public ...
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25 Feb 2021 in Senate:
Having said that, the Council of Governors (CoG) led by the Governor of Laikipia asked us to look into how they can get some of the levies, like the Catering Levy. All the hotels, eateries and bars are in the counties, so one wonders why the national Government continues to collect the Levy. We promised them we will have a meeting and look at how we can help them. They also requested us, in terms of own-source revenue, on what we can do to help them enforce payment by the big brother. The biggest defaulter of Property Tax is the ...
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25 Feb 2021 in Senate:
Mr. Speaker, Sir, one thing that came up when we had a meeting with the National Treasury is the need to establish an Integrated Revenue Management System to aid counties in revenue collection and management. This would seal revenue leakages and improve on performance. The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.
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25 Feb 2021 in Senate:
We are in the era of systems and Information Communication Technology (ICT) and we can make work easier. I mentioned that we need to understand spatial planning that was required and had a timeline. How far are we on the valuation roles within the counties? This is an area we will be embarking on from next week. Our legacy is to leave legislation, laws and regulations that help counties enhance revenue collection.
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25 Feb 2021 in Senate:
The Committee made a number of recommendations, both policy and financial. The policy recommendations we made are that-
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25 Feb 2021 in Senate:
(1) The National Treasury should not use the base effect economic growth to project high revenue collection and the resultant increase spending. It should not be interpreted to mean the living standards of Kenyans. The seven per cent growth may not translate to benefit people‘s pockets. The National Treasury may want to relook at that. (2) The National Treasury should develop realistic ways of projecting revenues based on historical performance and using an average of the past three year‘s revenue performance. The way we are doing for the county governments, we think that they should start with the expenses and ...
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25 Feb 2021 in Senate:
would argue that they need not borrow to put money lying in accounts. However, at the same time we also observed that there are counties that are unable to make quick absorption of the resources that are sent to them. Mr. Speaker, Sir, further, we said that the National Treasury should fast-track processing and submission of public finance management and Equalization Fund regulations. We learnt that these regulations are lying somewhere with the Cabinet. It is high time, as we wait for the Building Bridges Initiative (BBI), we get them to approve the regulations. There is lack of compliance to ...
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25 Feb 2021 in Senate:
Mr. Speaker, Sir, as a Committee, we felt offended when---
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