8 Sep 2020 in Senate:
We are all going to look at the copies. We have all canvassed on it. I am hoping we can just follow our procedure. I assure the Members, including Sen. Malalah the matter has been raised and he has had the opportunity to be heard. The Speaker and this House have heard. Mr. Speaker, Sir, guide us so that we do not have to attack each other on a matters like this.
view
8 Sep 2020 in Senate:
Madam Deputy Speaker, I will ask for your indulgence on this one. It is a Statement pursuant to Standing Order 52 (2) -- -
view
8 Sep 2020 in Senate:
Madam Deputy Speaker, I rise, pursuant to Standing Order 52(2) of the Standing Orders to make a Statement concerning access by county governments to their share of nationally raised revenue for the Financial Year 2020---
view
8 Sep 2020 in Senate:
What has happened to the volume? Is it my problem?
view
8 Sep 2020 in Senate:
I rise, pursuant to Standing Order 52(2) of the Standing Orders to make a Statement concerning access by county governments to their share of nationally raised revenue for Financial Year 2020/2021. As you aware, under the Constitution of Kenya 2010, there is a two-tire process on how revenue is shared between the two levels of government. In the first instance and pursuant to Article 218(1)(a) of the Constitution, Parliament considers and passes the Division of Revenue Bill which divides revenue raised nationally between the national and county levels of government. In this respect, the Division of Revenue Act, 2020, was ...
view
8 Sep 2020 in Senate:
resolution made by the Senate pursuant to Article 217 of the Constitution, considering that the second generation formula has lapsed. Madam Deputy Speaker, Article 224 of the Constitution provides that: - “On the basis of the Division of Revenue Bill approved by Parliament under Article 218, each county government shall prepare and adopt its own annual budget and appropriation Bill in the form, and according to the procedure, prescribed in an Act of Parliament.” However, while a reading of Article 224 would seem to imply that the budget process at the county level of government is determined by the Division ...
view
8 Sep 2020 in Senate:
cause a disruption in the budget-making process for county governments and ex-post affect the effective implementtion of the budget. Theses two scenarios, therefore, beg the question whether county governments have a remedy within the law that would allow limited access to their share of nationally raised revenue. I would like to first call your attention to the provisions of Section 134(1) and (2) of the Public Finance Management Act which provides that: - “(1) If the County Appropriation Bill for a financial year has not been assented to, or is not likely to be assented to by the beginning of ...
view
8 Sep 2020 in Senate:
The provisions of Section 134 of the Public Finance Management (PFM) Act, however, contemplate that the option of votes on account would arise where the Division of Revenue Bill and the County Allocation of Revenue Bill have been passed and for whatever reason a county assembly has not passed an Appropriation Bill. The section does not contemplate the present situation where the County Allocation of Revenue Bill has not been passed and national revenue has not been divided among the counties. Perhaps then the provisions of the Public Finance Management Act (County Government) Regulations would provide a clearer way forward. ...
view
8 Sep 2020 in Senate:
This leaves us with the question regarding the percentage to be withdrawn from the Consolidated Fund. While the withdrawal of money for the purpose of the national Government under Article 222 is based on a percentage of the estimates of expenditure for that year, the same method cannot apply to the county governments, since the estimates do not include the equitable revenue share due to counties. Logic would require that the percentage of the money to be withdrawn be based on the Division of Revenue Bill; yet this would be legally untenable, given the fact that the Bill, is not ...
view
8 Sep 2020 in Senate:
Madam Deputy Speaker, from the outset, let me point out that the Supreme Court Advisory Opinion relates to a situation where the Division of Revenue Bill has not been enacted. This is distinguishable to the present scenario where the Division of Revenue Act has been enacted and the counties’ share of nationally raised revenue has been determined. Access to these funds would therefore not be subject to the approval of the National Assembly or be predicated on the passage of an Appropriation Bill. The global allocation to counties has already been made by the Division of Revenue Act. However, the ...
view