Hon. Members, I have Message No.6 of 2015 from the President on nomination of persons to State offices.

Hon. Members, Standing Order No.42 (1) relating to Messages from the President provides that the Speaker shall read in the House any Message from the President delivered to the Speaker for communication in the House. In this regard, therefore, I wish to inform the House that I have received two Messages from His Excellency the President.

In the first Message received by my office today, 27th May, 2015, His Excellency the President, in exercise of powers conferred upon him by Article 152(2) of the Constitution, has nominated Mr. Eugene Wamalwa to the position of Cabinet Secretary. The President, therefore, seeks the approval of the National Assembly on the same nomination.

( Applause )

Hon. Members, Article 152(2) of the Constitution provides that the President shall nominate and, with the approval of the National Assembly, appoint Cabinet Secretaries. Further, Section 5 of the Public Appointments (Parliamentary Approval) Act of 2011 requires that an appointing authority shall, upon nominating a person for an appointment to which this Act applies, notify the relevant House of Parliament accordingly. Consequently, a proper notification in line with the above provisions has been received.

Hon. Members, I have also received a Message from the President regarding the nomination of Ambassador (Dr.) Monica Kathina Juma to the position of Secretary to the Cabinet. This nomination was made in accordance with Article 154(2)(a) of the Constitution, which states that the Secretary to the Cabinet shall be nominated and, with the approval of the National Assembly, appointed by the President.

Hon. Speaker, I beg to lay the following Papers on the Table of the House:- The 2014/2015 Supplementary Estimates II Programme Based Budget of the National Government of Kenya for the year ending 30th June, 2015

The Annual Report and Financial Statements of Laikipia University for the year ended 30th June, 2013.

The Report of the Auditor-General on the Financial Statements of Export Promotion Council for the year ended 30th June, 2014 and the Certificate of the Auditor-General therein.

The Report of the Auditor-General on the Financial Statements of the Ministry of Interior and Co-ordination of national Government for the year ended 30th June, 2014 and the Certificate of the Auditor-General therein.

The Report of the Auditor-General on the Financial Statements of Jaramogi Oginga Odinga University of Science and Technology for the year ended 30th June, 2014 and the Certificate of the Auditor-General therein.

The Report of the Auditor-General on the Financial Statements of the Revenue for the Ministry of Interior and Co-ordination of National Government for the year ended 30th June, 2014 and the Certificate of the Auditor-General therein.

The Report of the Auditor-General on Coffee Development Fund Financial Statements for the 13 months ending 31st July, 2014 and the Certificate of the Auditor-General therein.

The Report of the Auditor-General on Coffee Board of Kenya Financial Statements for the three months period ending 31st July, 2014 and the Certificate of the Auditor-General therein.

Thank you, hon. Speaker.

Hon. Speaker, I beg to lay the following Paper on the Table of the House today, Wednesday, 27th May, 2015:-

The Report of the Mediation Committee on the Public Audit Bill, 2014.

Thank you.

Hon. Mary Seneta, you have an intervention?

It is a Notice of Motion.

Hon. Speaker, I beg to give notice of the following Motion:-

THAT, this House adopts the Report of the Mediation Committee on the Public Audit Bill (National Assembly Bill No. 38 of 2014) laid on the Table of the House today Wednesday, 27thMay, 2015.

Thank you.

Hon. Speaker, I beg to give a notice of the following Motion:-

THAT, the Motion on the approval of Estimates of Revenue and Expenditure of the National Government, Parliamentary Service Commission (PSC) and the Judiciary for the Financial Year 2015/2016 be amended on page 24 on reallocation by inserting the following new paragraph immediately after paragraph---

Where have you got that from?

The Chairperson of the Departmental Committee on Education, Research and Technology. I am reading on her behalf.

Hon. Mary Seneta, a Motion of that nature has to be approved by the Speaker. I do not recall ever approving it. I am sure you are well aware that I do not have short memories. I am unlikely to have ever approved a Motion like that one today or anytime in the recent past. It is not there.

Hon. Speaker, there are PSC commissioners here. So I am wondering how my good friend, Hon. Mary Seneta, is today bringing an amendment on behalf of the Judiciary and the PSC, of which you are the Chairman and you are not aware of your own amendment, hon. Speaker.

As far I can remember, there is one Motion that has been approved.

Next Order.

Hon. Members, we will continue with that Motion as I await conclusion of the Communication.

Thank you hon. Speaker, for giving me this opportunity to support the report of the Budget and Appropriations Committee, albeit with some reservations. The budget process in any country is the backbone of the economy. It is the kingpin which shows the direction in which the country is moving, especially in terms of development and finances. It has to be taken seriously and have full participation of all, especially us Members of Parliament, who are tasked to pass the same.

As it transpired this morning, many Members had reservations as to how the Budget and Appropriations Committee comes up with the estimates and concludes a report. Personally, I feel that we need to integrate, especially the Committees which do budgets, especially their chairmen, so that the final report is not punched holes by the various committees, which also participate in its making one way or the other. I strongly believe that the Budget and Appropriations Committee should do the secondary work of finalizing everything with the National Treasury having collected enough data from the departments, which are tasked to also give the estimates, if at all they are within their areas of operation.

Having said that, this year’s Budget for 2015/2016, should have focused more especially on food production; we know that most parts of our country are arid. We should remember that His Excellency the President said that there will be a lot of investment in terms of doing irrigation and building dams. When I looked at this report, I found that the estimates given - I had even participated in a meeting where the President mentioned the issue of dams, especially in Meru region - did not have what the President said. Despite the Chairman of the Budget and Appropriations Committee having said that he had consultations with the President, he should have gathered the information which was given in particular meetings. Therefore, I emphasize that we need dams to irrigate our arid lands and those areas where we need to produce food. We need to supply water to our people because there is a perennial water problem in most parts of this country.

Tourism is an industry in this country which we tend to ignore. When I look at the estimates, the figures given for the promotion of tourism--- I have seem that tourism in Kenya is almost on its knees; we should have looked at it deeply, especially as far as infrastructure is concerned. Roads to our tourist attraction centers, security and promotion of tourism through our embassies in our foreign missions should be looked at. What was given to the tourism industry--- Personally, I find that Kshs10 billion is not enough given that it is only Kshs7 billion that will go to the promotion of the industry with Kshs2.8 billion being for the Recurrent Expenditure.

Education is the backbone of our human resource development. We have had problems, especially when it comes to the issuance of bursaries to our school students. We have the Higher Education Loans Board (HELB), which is supposed to give our university students money, so that those who come from needy families get money. I am sorry to say that HELB is there in writing but whatever they give to our students is minimal to the extent that even if they are given something, some of them drop out of school and, therefore, we need to invest more in it.

I believe that education bursaries are there in writing because in my constituency we last received them last year in September. The National Treasury should be vigilant enough on some of these things. They should also be proactive; if there is a fund for education, it should be

What is your point of order, Hon. Chepkong’a?

Hon. Speaker, unfortunately, I could not attend the sitting this morning because I had some urgent matters I was dealing with. Having gone through the Report of the Budget and Appropriations Committee, I noticed that there are very serious discrepancies. I have a lot of respect for the Committee Chair. Hon. Speaker, it will be useless for us, as Members of the Justice and Legal Affairs Committee, to travel from our constituencies to Nairobi, spend our valuable time on a sitting and pass resolutions, only for another parliamentary committee to reject our Committee’s resolutions. We are not mad people. Some of us are lawyers. If we do not have anything to do, we have no business attending committee meetings. We can as well leave the Justice and Legal Affairs Committee matters of dealing with the Budget to the Budget and Appropriations Committee. We do not have a problem. I will not waste my time. I spent a lot of time in the Justice and Legal Affairs Committee, discussing the Budget and then I come here in the morning and, even without courtesy, I am told that the Budget allocations that we proposed to be removed from the Judiciary Vote--- We did a lot of examination and found out that in the Development Expenditure for last year alone, the Judiciary just spent 61 per cent. There are other Departments which have serious

Have we gone back to the morning session? Hon. Musyimi, this is becoming too much.

Thank you, hon. Speaker. I have heard what my good friend, Hon. Chepkong’a, Member for Ainabkoi and the Chairman of the Departmental Committee on Justice and Legal Affairs, has said. He is a man whom I have a lot of respect for, as I have for all the other Members. We have a problem. He was not here in the morning. The English people have a phrase; there is something they call “honest mistakes”. Honest mistakes are those made in good faith. In other words, there is no agenda but it is a mistake. It is very possible that honest mistakes have been made and this would be a case in point; it is about the Judiciary.

Hon. Mutava Musyimi, do I understand you to be then seeking an adjournment of debate?

Hon. Speaker, you hear me to be saying that I think it is important to give it enough time because information is coming out that we need to hear. It is part of the Constitution we adopted. This is not an easy Constitution to implement. Anybody else sitting in the position I am in would either be dealing with the problems I am dealing with several times over or different kinds of problems. I would say that we debate. We need it. It may be unpalatable but it is necessary and then we do not make a final determination. We defer that final determination for another day, so that we have time to mediate these numbers. That is my honest request.

I hear you but remember that the only timeline that you need to have in mind is 26th June because after that you would have to use the procedure known as “Vote on Account”. I agree with you that there is need for greater consultation. In fact, I do not even think the greater need is for a Kamukunji . The greater need is for the chairpersons of the various Departmental Committees to have a session, or sessions, with the Budget and Appropriations Committee, possibly also in the presence of the Cabinet Secretaries, especially those who have not found it appropriate to appear before committees. Cabinet Secretaries must appreciate that budget making is such a momentous occasion; this House has the capacity to reject the total budget of a Ministry. That Cabinet Secretary would have no option but to just go back to the village, away from Nairobi. What else do they have if their budgets are rejected by the House? They must know that, so that whether they have other engagements--- Members also have a lot of engagements; it is not right for a Cabinet Secretary to claim that they have a lot of work. So are Members in the respective Departmental Committees. Perhaps, it is something that your Committee, Hon. Mutava Musyimi, will need to have more sessions with the various chairpersons of committees. I would also want to encourage the chairpersons of committees to involve several of their Members in their decisions. I like what Hon. Chepkong’a said, that his report is signed by all Members of his Committee. I would wish to hope that all the others are likewise owned by all Members of Committees, so that we do not start hearing one Member saying that they want to move a Motion that so much be reduced from this vote; we need a dam here or a kiosk there.

If you are open to the suggestion that the Budget and Appropriations Committee meets with the chairpersons of the committees and some Members of those committees, together with Cabinet Secretaries and Principal Secretaries, as the case may be, then that to me would be a priority. Once those consultations – I prefer your word over mine – are held, then I will table a document. We can debate that document because discussing the current document, you can tell, has a lot of issues. That would be more fruitful for us as a House, and for the country going forward. So, if you rule that you want the Budget and Appropriations Committee to give you our report having held consultations by Thursday next week, or you set a date since you are our Speaker, we shall comply and do the needful. It is important that that report be with you and be signed by myself before we come back here on Tuesday, 9th June. We can then prosecute the matter that afternoon. It will not take long. That will be my humble suggestion.

Thank you, hon. Speaker. I wish Hon. Chepkong’a was here this morning. These matters were canvassed by Hon. Jakoyo and many of us here. You made a serious Communication because you tasked chairpersons of committees to bring amendments on behalf of Members. I want to take the House through the timelines in the budget making process and the reason why we recalled the House to a special session. That is because Kenya signed certain obligations to its neighbours. The Budget will be read on 11th June this year. We are resuming on 9th June. Parliament usually gives the Cabinet Secretary (CS) for National Treasury between seven to 10 days to adjust the estimates based on the various adjustments the Parliamentary committees have suggested. What he will read to the country on 11th of June will be something that carries the input of the Parliamentary committees as presented by the Budget and Appropriations Committee. We have agreed this morning and I am sure we need to move ahead because if we postpone this debate today and we are on a special session - we are coming back on 9th of June - that means we will have only one day left because the day he is coming to read the speech, he must also bring the printed estimates with all the adjustments of the Budget and Appropriations Committee. He cannot do that in one or two days. I would ask, as per the direction you gave this morning, that as we debate, Hon. Chepkong’a and the Budget and Appropriations Committee Chair--- What he raises is valid, but I wish he was here in the morning. In future as you said, and that is why we have the Liaison Committee in this House that brings together all the chairs of all committees. So, the Liaison Committee and the CS should sit down in the presence of the Budget and Appropriations Committee Chair. I agree that all of us in respective committees take consideration of Members’ contributions. If they say “reduce” in their report, they have reasons why a reduction is being done. If they say “increase”, they have reasons. There is no provision in the Standing Orders where Budget and Appropriations Committee has a veto power. That must come out very clearly. The Budget and Appropriations Committee must undertake consensus-building with other committees based on what they

( Inaudible )

Hon. Pukose is talking to me. I think he should talk to the Chair. He is telling me even the Higher Education Loans Board (HELB). I am saying, as an example, Hon. Chepkong’a can go back, talk to the Chair and agree because the Speaker has given the leeway this morning for the Chair to consult. We then continue and approve the Budget because more delay means more delay even for our own constituencies. If you look at the Report, the Salaries and Remuneration Commission (SRC) is being given Kshs1 billion. That is not even what was in the Budget Policy Statement (BPS). So, next year, with your guidance Hon. Speaker, the budget-making process must be very consultative within the precincts of Parliament. Under your leadership, we must take charge of the process so that we know what is happening and give good reasons. I want to indulge my colleagues because the 11th of June is a Budget Day for all East Africans. Let us continue to debate, agree and bring the amendments.

On a point of order, hon. Speaker.

Yes, what is your point of order, Hon. Mutava Musyimi?

Given the importance of the Budget to the country, would I be in order, Hon. Speaker, to humbly suggest that this House be recalled on Tuesday next week so that we have time to consult?

My fear, and that is what a lot of colleagues here may not appreciate, is that we can sit here, make amendments which can burst the ceilings. So, we need the Treasury with us as we consult so that we do not burst the ceilings and begin to create macro-economic problems for this country going forward. It is not enough to just say we have powers as the National Assembly to make the final decisions. That we can do. However, we need the Treasury with us as we make those consultations so that we observe certain fiscal disciplines. My plea is that this House be recalled next week around Tuesday or thereabout. That will give us time to suspend everything we are doing so that we can do the consultations and then I table a report. However, the Treasury must be there.

Is there sufficient time for you to meet and do the consultations? Even as you do so, remember tomorrow--- It is fair to bring you back to spiritualism because I can see some of you have run away from that.

Tomorrow is the National Prayer Breakfast Day, starting at 7 a.m., at the Safari Park Hotel. We want to be through by 10 a.m.

( Inaudible )

I am assuming that Hon. Amina Abdalla’s spirituality will have revisited her so that she can communicate with her maker throughout tonight and by the time we have these consultations, there will be some white smoke. Did I hear Hon. Midiwo wanting to propose something?

Thank you, hon. Speaker. I do not think you are suggesting that Hon. Mutava Musyimi’s spirituality has dissipated. Remember he used to be a great man of God.

My leader here wants to prove that Hon. Mutava is still spiritual. I do not know how you test another person’s spirituality. However, we are making progress. The time we took off for lunch has enabled people to think. Hon. Duale has made a good proposal based on facts. Hon. Mutava is also appealing appropriately. It is important that we set a good precedent. It may have happened differently in the last couple of years. The Constitution was still new to us and many Members were also new. My only appeal would be that as we go to consult, we know what the procedure is. We know that you have to consult the CS for the National Treasury, but these other ones, leave them to the committees to figure it out. Let the Budget and Appropriations Committee not do what is not in their purview. I would like to meet the CS for Foreign Affairs and give her my piece of mind because I am her boss generally in the Committee. We need to talk to her. We give them another chance. It is not us to hurt anybody. However, for Budget and Appropriations Committee to say we may burst the ceiling while they are adding money to Ministries whose budgets we have slashed, I do not understand how contradictory that would be. However, we want to give you a chance. What I want us to agree on is the mandate of Budget and Appropriations Committee. We must agree as a House between now and the date we come back. I am attracted, for concession purposes, to Tuesday so that we can meet Hon. Duale halfway and meet Budget and Appropriations Committee halfway. The most important thing why we are in this controversy is the mandate of Budget and Appropriations Committee. If you talk about ceilings, we put an upper ceiling for the SRC but you have surpassed it. So, they are bursting the ceiling without coming back to the House. Are you sure of your mandate? We must know if the committees can make suggestions. I can tell you in this Budget, the Departmental Committee on Education, Research and Technology, now that it dawned on them after I raised the issue that something unusual was happening--- Some universities, for example, are being given Kshs300 million. A big institution like Moi University, which we have even collapsed Garissa University College to join it, is being given Kshs40 million. Something is amiss in the---

( Inaudible )

Hon. Angwenyi, this is the plenary Chamber of the National Assembly and not Kitutu Chache North.

So, some issues are not taken care of. For example, I may remind Members that the national bursary which concerns your constituencies has not been disbursed to date because there is no budget for it. This Budget does not have that bursary again.

On a point of order, hon. Speaker.

I am on a point of order, please. The bursary which we have been accustomed to – it has been there even before I came to Parliament - is missing currently in your constituency. I am not sure if Members of the Budget and Appropriations Committee are not getting those phone calls. Again, we cannot preside over Budget where we have total power to make and omit bursary money. We need to go back and consult within reason. We have to do that. It is our mandate and it behoves us. I want to insist on a negotiated Budget. When the Committee goes and slashes the budget of the Departmental Committee on Justice and Legal Affairs---I am now in the know that even the money for voter registration has been slashed and yet the Constitution talks of continuous voter registration. Hon. Chepkong’a and his Committee, thanks to their tenacity, have sat and said that we are putting in money for voter registration as per the requirement of the Constitution. Where would another Committee get the mandate or even the idea of just slashing? Where? Please, just indulge us. What we are doing here is fundamental to the future of the Budget-making process of our country. So, in order to meet all interests and take the country along so that nobody is offended, I want to plead with Hon. A.B. Duale to allow us to be recalled here on Wednesday, next week. I have consulted with Members. Many Members want the long weekend because it is a holiday on Monday. Members can come back here on Wednesday. If it is one day, you can even make it to be on Thursday as per the wishes of the House in consultation with the Speaker. Hon. Jakoyo, for President! Thank you, very much

So, do I understand Hon. Midiwo to have proceeded under Standing Order No.96?

Hon. Speaker, I was going to say that we adjourn the debate on this Motion under Standing Order No.96 (1).

To when?

To Wednesday, next week, at 9.00 a.m.

9 a.m or 9.30 a.m? Yes, Hon. A.B.Duale.

Hon. Speaker, consensus is always very good. So, I support we adjourn and make sure that our colleagues, that is the Liaison Committee, the Cabinet Secretaries and National Treasury sit from tomorrow afternoon, Friday, Tuesday and then through the procedures, I will write to you to recall the House on Wednesday, next week.

At 9.30 a.m. That is okay. Hon. Mutava Musyimi, you wanted to say something.

I am very glad that we have finally drawn a conclusion to this debate. My only concern is that I am not sure that the ingredients are in place as to who meets who. We need to hear your guidance, Hon. Speaker. We know that we will be here on Wednesday as the National Assembly, but between now and Wednesday, who meets who so that we are clear. We do not want more problems.

Hon. Sakaja. Give hon. Sakaja the microphone.

Hon. Speaker, the Leader of the Majority Party is saying that my card has a virus. I do not know where that has come from. I want to thank you first for reminding us that tomorrow we have the prayer breakfast. Many had forgotten about it. I appeal to Members that before attempting to sing tomorrow let us practise. Let us find those who can practise. Last year, it was a very interesting show when hon. Members attempted to sing. So, just find time to practise before we sing before the nation. Hon. Wambugu should direct us on how to do that.

Hon. Jakoyo has raised a very fundamental question. It is two years since we started this new role of making Budget by Parliament. The one thing that needs to be clarified is the relationship between the Departmental Committees and the Budget and Appropriations Committee as regards the budget-making process. You have heard Hon. Chepkong’a very emotionally expressing his frustrations over the length of time he has taken in his Committee. Many other chairmen concur that we take so much time with Members. Even during recess hon. Members have sat down and listened to officials from Ministries and departments. Cabinet Secretaries have come and they have given their submissions. I do not think it is correct that such deliberations can just be arbitrarily ignored by the sitting of one Committee. This is because the precedent we will set is that these Cabinet Secretaries and heads of these departments will directly be going to lobby with the Budget and Appropriations Committee. There will be no need for them to talk to the different departmental Committees.

Hon. Speaker, I urge you that when you give your ruling, kindly give a considered ruling. There is a lot of precedent around the world, especially in Presidential systems as to the relationship between Departmental Committees that are scrutinised and have considered the different budget estimates for different departments and ministries. A lot of the re-allocations have not even gone beyond the ceiling. They are just re-allocations within the same total. If you look at the Report, even those re-allocations within the same total are being ignored. So, I urge you because this is a fundamental issue. It will set the precedent going forward into the future as to how we make Budgets in this House. When a Committee has brought a Report to the Budget and Appropriations Committee, should it be considered just as an opinion, taken more seriously or can it be arbitrarily ignored by the sitting of one Committee? Is there a super Committee in this House when it comes to budget-making? We urge you to consider that when you make the ruling.

Hon. Speaker, I want to thank you for the opportunity to allow me also to weigh in on this important matter. I want to thank both Hon. Jakoyo Midiwo and Hon. Chepkong’a for bringing the issue. I also want to plead with my good friend, Hon. Mutava Musyimi to understand the concerns of Members. In the morning, he spoke about the culture of suspicion and mistrust among Members, but I think that would not happen if we observed the first principle of public finance which requires openness and accountability. The provisions that we make here should have a relation with the reality that we know. I was just going through, and I hope my good friend, Hon. Ndung’u Gethenji will look at this, the budget for the Ministry of Defence and I noticed that you have allocated a Development Budget of Kshs42million. However, even as we speak now, most of our soldiers do not live--- It is Kshs42million unless it is a typographical error. I was wondering how you can allocate the Ministry of Defence Kshs42million, when most of our soldiers do not even have houses to live in. So, these sorts of things are the ones that we are talking about.

Again, as the Public Accounts Committee, we have been concerned about the development allocations that are going to the Treasury. If you look at what is going on today, in the table that we were given the Treasury, which in my view is mainly a policy formulating and

Could the hon. Members who are standing, please, resume their seats?

Hon. Members, this morning the Member for Gem, Hon. Jakoyo Midiwo, rose on a point of order and raised several issues regarding the place of the recommendations of Departmental Committees in the Report of the Budget and Appropriations Committee. He was supported by contributions from several Members, including the Leader of the Majority Party, hon. A.B. Duale, Hon. Eseli Simiyu, Hon. Benjamin Langat, Hon. Peter Kaluma, Hon. Ndung’u Gethenji and Hon. Richard Onyonka, among others. The Chairman of the Budget and Appropriations Committee, Hon. Mutava Musyimi, argued that the Committee, in his understanding, is not obligated to take in its entirety the recommendations of the Departmental Committees when submitting its Report to the House. From the points raised by Members, I have deduced the following as the issues for determination:- (i) Whether the Budget and Appropriations Committee is at liberty not to take into consideration the recommendations of Departmental Committees on the Budget Estimates of line Ministries and Departments under their purview when discussing and reviewing the Estimates of Revenue and Expenditure.

Thank you, hon. Speaker.

Sorry, Hon. Eseli! Maybe, just in case some Members may--- Do I need to put the Question?

Yes.

Hon. Eseli, sorry.

Thank you, hon. Speaker. Today, I am very proud to be a Member of the 11th Parliament that from morning to now, you have actually guided this House right in front of our eyes and all Kenyans to form a consensus.

Order! Order, hon. Members! The Hon. Eseli is on his feet and there is still further business for the House to deliberate. It is the Report of the Mediation Committee. Yes, Hon. Eseli.

Hon. Speaker, you have prudently guided this House until this afternoon at plenary. We have actually been able to build consensus under your guidance. I was privileged to be in the last Parliament - the Tenth Parliament - which was a post- conflict Parliament. That Parliament rose to the occasion to, by and large, implement the Agenda 4 Items. This Parliament is tasked with implementing the Constitution which was part of the Agenda 4 Items. This afternoon, I am very proud that I am a Member of this House, especially with the ruling which you have given, and that has given this House impetus to now continue serving the country. Thank you.

Thank you, Hon. Eseli. Next Order.

Order! Order, hon. Members! All of you cannot be up and standing. Hon. Gumbo, Hon. Ndung’u Gethenji and Hon. Naomi Shaban I now know most of you even by appearances, your heights and respective body sizes. Hon. Langat is moving a Motion. Hon. Langat.

Hon. Speaker, I beg to move the following Motion:- THAT, pursuant to the provisions of Article 113(2) of the Constitution and Standing Order No. 150(3), this House approves the Report of the Mediation Committee on the Public Audit Bill, (National Assembly Bill No. 38 of 2014). The Mediation Committee on the Public Audit Bill, (National Assembly Bill No. 38 of 2014) was constituted by the Speaker of the National Assembly and the Speaker of the Senate on 26th May, 2015, pursuant to Standing Order No. 149(2) of the National Assembly and Standing Order No. 154 of the Senate, which outlines the functions of the Committee. The members of the Committee were:- Myself as the Chairperson, Senator Billow Kerrow, Hon. Sakaja Johnson, Hon. Senator Stephen Sang, Hon. Makali Mulu and Senator Mutula Kilonzo Junior. The Mediation Committee derives its mandate from Article 113 of the Constitution of Kenya, Standing Order No. 149 of the National Assembly and Standing Order No. 154 of the Senate.

Thank you very much. I rise to second the Report of the Mediation Committee that was set up to find mediation on the Public Audit Bill. As the Chairman has noted very ably, this mediation was done in record time. In less than two hours we were in agreement

Hon. Makali Mulu.

Thank you, hon. Speaker. I was also a Member of the Mediation Committee and it was my first experience to sit in a Mediation Committee. In agreeing with my colleagues who are also Members of the Committee, I must thank the Members of the Committee because it did not take us very long to agree on these issues of concern. Hon. Speaker, I will only focus on Clause 39 because the rest have been explained quite well. Clause 39 focuses on the audit of security organs. To me, this clause is very important because, in this country, there have been a lot of secrets in terms of what happens to those agencies. As a Mediation Committee, we have agreed that in terms of auditing and in terms of scope, we are not going to restrict the Auditor-General on what they need to look at. But what will be a bit restrictive is confidentiality of the information so that, even though the Auditor- General will look at the information and get information, the information he captures in his report, to some extent is controlled, so that we do not expose our security details a lot. I think that is why it is important to have those auditors who will be auditing the security organs vetted by the relevant Government agencies. So, to me, that is one of the clauses which will help this country in terms of trying to know what happens in those agencies. That is because most times, Kenyans believe that there is a lot of corruption in security matters. But I think with this kind of clause, Kenyans are able to believe that the right things are being done. Hon. Speaker, what I learnt in this Mediation Committee is that, in future, the two Houses need to come up with a mechanism - whether informal - of some consultations before the Senate formally writes a Memorandum to you. My belief is that if the Chairman of the Departmental Committee on Finance, Planning and Trade was informally invited to the discussion of the Senate, we would not have got to this level. That is because I could see Hon. Langat and Senator Billow Kerrow were in agreement informally that this thing should have been done before going to the two Houses. To save the House this important time, in future, the two Speakers could say that before you finalize whatever you are doing, they can compare notes. So, where we were saying replace the word “may” and “shall” could be sorted out at that level before it comes to the House. With those comments, I want to plead with my colleagues hon. Members to support the Mediation Committee so that we could this Bill can become an Act of Parliament.

Hon. Njogu Barua.

Thank you, hon. Speaker for giving me this opportunity to contribute to this Report on Mediation between the National Assembly and the Senate. First and foremost, I would like to commend the good work that has been done by Members of the mediation team. They have, very quickly, come up with a compromised position and enabled us to have this Bill tabled today. Hon. Speaker, I would like to mention a few things: One is on qualification of the Auditor-General. I think the disparity was on the level of qualification required. I would like to propose that nobody should be discriminated from holding any position in as far as they are capable of doing the work. So, by putting the ceiling or the minimum requirement to be a first degree in Finance, Accounting and other relevant disciplines, to me, is acceptable. I would like to commend the Committee for agreeing with that. However, I would like to comment that it is also important for us to encourage people who have attained higher degrees and higher levels of education to get priorities in serving positions. I do not see any problem in raising the bar a bit higher to a postgraduate degree. I think in future, we may be forced to relook at this because,

Hon. Maanzo.

Thank you, hon. Speaker for giving me this opportunity to comment on the Report of the Mediation Committee. I have looked at it carefully and I have also followed part of what was happening in the Mediation Committee. The replacement---

Hon. Members, I think it is fair to appreciate the reason why you came for the Special Sitting. If, at the end of the day, we cannot be able to put the Question, then we would have sat in vain. There is a deadline that if we are in agreement - like the Mediation Committee has brought a Report on the Bills, they must be signed not later than midnight tonight. Proceed, hon. Maanzo.

Hon. Speaker, on Clause 5, there is a bit on budgeting. That is because after a financial year, it is good to know that the monies of a country have been used well. Therefore, in future, it could be that although the current qualifications are good - and I support them - it is good to go for the highest possible standards in the accounting profession. Nowadays, people have a degree in accounting. They have also gone on to do other courses in relation to accounting. Even if they have Masters or doctorate degrees, the best suited candidate should be given the opportunity, even though the guidelines provided currently by the law are good. On the part of the vacancy in the Office of the Auditor-General, the mediated version is good and follows the law, save for the duration of the replacement. In future, when we improve this law, because I am sure it will come again it is good to make it even much more efficient in terms of the time the person should be replaced to go on with the good work of auditing. That is because in audit, time is of essence. If you lose in terms of time, then the country stands to suffer, at times, irreparable damages. On the Budget Estimates and the audit of the same, it is very important for the Auditor- General’s Office to confirm that the Budget has been appropriated, how it has been used and what has not been completed so that development can be hastened. So, that office is very important in ensuring that there is efficiency in the utilization of public funds.

On a point of order, hon. Speaker.

Hon. Rasso, what is your point of order?

Thank you very much, hon. Speaker. We debated this Bill as a House exhaustively. Looking at what has come out of the mediation, it has not substantively changed what this House agreed in totality. Therefore, will I be in order to ask the Mover to reply? Thank you.

Hon. Members, is it the case that I call the Mover to reply?

Yes.

I thank the Members and I urge them to support the Report. Thank you.

Hon. Mutava Musyimi, I will use Standing Order No.1 to allow you to lay your Paper and give Notice of Motion.

Much obliged. Hon. Speaker, I beg to lay the following Paper on the Table of the House today, Wednesday, 27th May, 2015:- The Report of the Mediation Committee on the Division of Revenue Bill, 2015.

Yes! Table the Report.

Thank you, hon. Speaker. I beg to give notice of the following Motion:- THAT, this House adopts the Report of the Mediation Committee on the Division of Revenue Bill, 2015 laid on the Table of the House today, Wednesday, 27th May, 2015. I thank you.

Hon. Members, the time being 4.33 p.m., and there being no other business, this House stands adjourned until Wednesday, 3rd June, 2015 at 9.30 a.m. The business to be considered, being among others, the Report of the Budget and Appropriations Committee on Estimates of Revenue and Expenditure for the National Government, the Judiciary and Parliament; the consideration of the mediated version of the Division of Revenue Bill, 2015 and any other business that the Leader of the Majority Party may include for consideration by the House on that day in his letter to the Speaker. The House is adjourned.

The House rose at 4:35 p.m.