Hon. Senators, I have a communication to make on the Address to the House by the President of the Senate of the Republic of Rwanda. It gives me great pleasure, on your behalf and on my own behalf, to extend a very special and warm welcome to our colleague and dear friend, the President of the Senate of Rwanda, the Rt. Hon. (Dr.) Jean Damascene Ntawukuliryayo. Mr. President, welcome, Karibu to the Senate of the Republic of Kenya. 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.

Your Excellency, the Rt. hon. Speaker of the Senate of Kenya, the Rt. hon. Deputy Speaker, hon. Senators, please, accept my thanks for the opportunity to address the esteemed Senate of the Republic of Kenya as I conclude my official visit today. This occasion offers me, first and foremost, a unique forum from which to convey the warm greetings and appreciation of the Government and the people Rwanda for the friendship and cooperation between our two countries as shown over many years.

A great spirit of cooperation has been and continues to characterize Kenya-Rwanda relations. It is my sincere hope, and that of the Senate of Rwanda, that this spirit keeps growing up until beyond when Rwanda and Kenya have transcended our political, economic and social challenges together. There is no better evidence of the friendly relationship between our two countries, than the ambitious targets set by East African nations and the work being done by His 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.

(Sen. (Prof.) Kindiki): Mr. Speaker, Sir, I wish to lay the following Paper on the Table of the Senate:- The Address by the President of the Senate of Rwanda, the Rt. Hon. (Dr.) Jean Damascene Ntawukuliryayo.

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.

Hon. Senators, it is now the pleasure of the President of the Senate of Rwanda to take his leave. I wish to suspend the sitting for about 30 minutes and request Senators to remain up standing until the procession leaves the Chair and thereafter to join the President of the Senate and Members of his delegation for refreshments.

Hon. Senators, as you can see the House has resumed. Next Order!

Mr. Deputy Speaker, Sir, I beg to lay on the Table of the Senate the following Paper:- The Report of the Mediation Committee on the Division of Revenue Bill, National Assembly Bill, No.15 of 2014.

REPORT OF THE STANDING COMMITTEE ON NATIONAL SECURITY AND FOREIGN RELATIONS ON THE ALCOHOLIC DRINKS CONTROL (AMENDMENT) BILL, 2014 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.

Mr. Deputy Speaker, Sir, I beg to lay the following Paper on the Table of the House:- The Report of the Standing Committee on National Security and Foreign Relations on the Alcoholic Drinks Control (Amendment) Bill, 2014.

Next Order.

Mr. Deputy Speaker, Sir, I beg to give Notice of the following Motion:- THAT, this House adopts the Report of the ad hoc Committee on Legislation on Harambee (voluntary contribution) laid on the Table of the House on Thursday, 19th June, 2014. APPROVAL OF THE REPORT OF THE STANDING COMMITTEE ON AGRICULTURE, LIVESTOCK AND FISHERIES

Mr. Deputy Speaker, Sir, I beg to give Notice of the following Motion:- THAT, in accordance to Standing Order No.227 (1) and (2), the Senate approves the Report of the Standing Committee on Agriculture, Livestock and Fisheries laid on the Table of the House on Thursday 17th July, 2014. THANKS FOR THE ADDRESS BY THE PRESIDENT OF THE SENATE OF RWANDA

Mr. Deputy Speaker, Sir, I be to give Notice of the following Motion:- THAT, the Thanks of the Senate be recorded for the address by the President of the Senate of Rwanda, the Rt. Hon. Jean Damascene Ntawukuliryayo delivered on Tuesday 22nd July, 2014.

Mr. Deputy Speaker, Sir, I had made a request to make contributions to a Bill that was already listed on the Order Paper earlier. So, I think that is where the mix up came from. 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.

Mr. Deputy Speaker Sir, I beg to give Notice of the following Motion:- THAT, the Senate approves the Report of the Mediation Committee on the Division of Revenue Bill, Nation Assembly Bill No.15 of 2014, laid on the Table of the Senate on Tuesday, 22nd July, 2014.

Sen. Billow, do you have something else you want?

Mr. Deputy Speaker, Sir, yes, when we come to the Motions.

But we are not there yet.

But I have given the Notice of Motion.

You have given the Notice of Motion, but I could still see your request.

Sorry, Mr. Deputy Speaker, Sir.

Sen. Wetangula, I am waiting for a small clarification as we move on to the next order. So, please, bear with me.

Mr. Deputy Speaker, Sir, pursuant to Standing Order No. 45(2)(b), I wish to request for a Statement from the Chairperson of the Departmental Committee on Legal Affairs and Human Rights---

Order! We are not on Statements yet, but I still have your request here. Are we through with notices of Motions?

Next Order!

We have Statements that are listed on the Order Paper. Let us deal with them first and then we move on to the next ones. Is Sen. (Prof.) John Lonyangapuo not yet here? Sen. Wilfred Machage. 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.

Mr. Deputy Speaker, Sir, allow me to seek a Statement from the Chairperson of the Committee on Roads and Transportation regarding the Isebania-Kehancha-Gwitembe Road, otherwise, referred to as E166 and the Muhuru Bay- Migori-Kehancha-Ngorengore Road, otherwise, referred to as C13. In the Statement, I would like the Chairperson of the Committee to state:- (i) whether the Ministry of Transport and Infrastructure is aware that the two above stated roads are in very dilapidated state; (ii) whether the Government of the Republic of Slovakia is financing the construction of Road E166 to the tune of about Kshs4.3 billion loan and explain why the construction of the road has stalled; (iii) whether China Wu Yi Construction Company was awarded the contract to construct Road C13 and why the construction has not taken off; and, (iv) when construction of Road E166 will be completed. Thank you, Mr. Deputy Speaker, Sir. COMPLIANCE WITH ARTICLE 231 (4) OF THE CONSTITUTION

Mr. Deputy Speaker, Sir, with your permission, I seek the following Statement from the Chairman of the Senate Committee on Legal Affairs and Human Rights, relating to compliance with Article 231(4) of the Constitution in the following terms:- (1) What is the national Government doing to ensure that notes and coins issued as currency by the Central Bank of Kenya comply with the provisions of Article 231(4) of the Constitution and why there is delay in compliance? (2) Can the Chairman confirm or deny that there is a serious scheme on the part of the national Government to go round or circumvent the said provisions by issuing notes and coins that bear the images of individuals by way of depicting statutes of certain individuals in our currency?

We will start with Sen. (Dr.) Machage. We did not get a return date for your Statement. Where is the Chairperson of the Standing Committee on Roads and Transportation?

Order, Sen. Ongoro and Sen. Muthama! You cannot stand in a straight line between me and the Senator who is standing to speak. 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.

Mr. Deputy Speaker, Sir, I would request for three weeks to get all the details and respond adequately.

Mr. Deputy Speaker, Sir, three weeks is a bit too much. Two weeks may be acceptable.

Hon. Senators, you are aware that according to our calendar we will be going on recess towards the end of the month. So, by three weeks you mean after the recess. Is it not?

Mr. Deputy Speaker, Sir, I will try within two weeks.

No! No! I want a date. You can tell me that you will give it on 31st July, 2014, before we proceed on recess.

On 31st July, 2014.

What day is it?

It is a Thursday.

Then you will give the Statement on 31st July, 2014. Is that okay, Sen. Machage?

Yes, Mr. Deputy Speaker, Sir.

Thank you. Regarding the request by Sen. James Orengo, is the Chairperson of the Committee on Legal Affairs and Human Rights not here? Vice-Chairperson.

Mr. Deputy Speaker, Sir, I undertake to respond to the questions, maybe, the first week when we resume from recess.

In September?

Yes, Mr. Deputy Speaker, Sir.

Is that okay, Sen. James Orengo?

Mr. Deputy Speaker, Sir, two weeks will be sufficient because this is a straight forward question. He can give an answer on the 31st July, 2014, but if it is possible he can do so within two weeks before we go on recess, I will not have any objections.

Mr. Deputy Speaker, Sir, we have handled several questions with the Attorney-General’s office. But speaking from experience, I know that since we have one week before going on recess, I can give progress on the same on 31st July, 2014. However, I will give a comprehensive answer on the first week after we come from recess.

I do not recall that there is a provision for a progress report. You either can give us an answer or not. If you cannot 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.

The first Tuesday after recess.

Sen. Orengo agrees and so, that is okay. Sen. Khaniri. LOSS OF VEHICLE REGISTRATION NO.KYN 263 BELONGING TO MR. CHARLES IRAVONGA MATENDECHERE

Mr. Deputy Speaker, Sir, pursuant to the provisions of Standing Order 45 (2) (b), I wish to seek a Statement from the Chairperson of the Standing Committee on Health regarding the loss of vehicle registration No.KYN 264, Honda; dark gray in colour, belonging to Mr. Charles Iravonga Matendechere during his medication at the Nairobi Hospital. Mr. Deputy Speaker, Sir, Mr. Matendechere drove himself to the hospital for medication and was admitted on 21st September, 2003. His vehicle was parked within the designated car park at the hospital. It was towed to Kilimani Police Station and consequently disappeared. In the Statement, the Chairperson should explain under what circumstances the vehicle disappeared from the hospital precincts, why it was towed to Kilimani Police Station and when Mr. Matendechere will be given back his vehicle, including measures undertaken to compensate him for the inconvience. Thank you, Mr. Deputy Speaker, Sir.

Is the Chairperson of the Committee on Health not here? Sen. Kittony, do you have something to do with the Committee on Health? Who is the Chairperson of the Committee on Health?

Mr. Deputy Speaker, Sir, the Chairperson is Sen. Kuti and I am the Vice-Chairperson.

When will you be able to give an answer for this question by Sen. Khaniri?

In two weeks’ time.

Is that satisfactory, Sen. Khaniri?

Mr. Deputy Speaker, Sir, it is okay with me. But in two weeks’ time, of course, we will not be here. I would request that if possible, just like Sen. Sang gave a commitment that he could try and do it on 31st July, 2014, they could try and have 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.

Sen. Kittony, you need to look at the HANSARD, so that you can understand what the question was and the answer that needs to be given in a particular period of time.

On a point of order, Mr. Deputy Speaker, Sir. I was looking at this question and wondering what relationship it has to do with the Committee on Health.

It is too late. The question was approved by the Speaker, it has been asked and a date for giving the answer has been given.

It is a security problem, Mr. Deputy Speaker, Sir.

It may very well be, but the question was approved, the Statement has been sought and a date to give the Statement given by the Committee. Sen. Kanainza, do you have a point of order?

On a point of order, Mr. Deputy Speaker, Sir. Did you notice Sen. Kittony pointing at you?

Sen. Kittony, did you do that? Is it true?

Mr. Deputy Speaker, Sir, I did not hear that. I was consulting with somebody here.

Mr. Deputy Speaker, Sir, before I make my request, could the Clerks-at-the-Table help me, because when I key in my Personal Identification Number (PIN), my gadget reads “Russian?” I do not know if it means Russian language or whatever it does. Could they check?

But here it reads your name.

(Sen. Wetangula)

Mr. Deputy Speaker, Sir, judging from the urgency of the question, I undertake to reply to the Statement on 31st July, 2017.

Do I take that to be 31st of this month?

Yes, Mr. Deputy Speaker, Sir.

That brings us to the end of---

On a point of order, Mr. Deputy Speaker, Sir.

Sen. Okong’o Omogeni.

Mr. Deputy Speaker, Sir, I am Sen. Mong’are Okong’o.

Sorry, I called you Omogeni?

Yes, Mr. Speaker, Sir.

Yes, sometimes, your list shows like that and I do apologize. Of course, I know your name very well. I hope you will accept my apology.

Mr. Deputy Speaker, Sir, if the list shows like that, then it is very wrong.

Yes, the original list. I apologize and I do not think we should pursue that issue.

Mr. Speaker, Sir, that notwithstanding, I had sought a Statement from the Chair of the Committee on Agriculture, Livestock and Fisheries on the damning report by the Kenya Tea Board which was due to be answered last week on Tuesday. But by virtue of the intervening urgent business of the House, it was not responded to. So, I am requesting if the Chair of the said Committee can undertake or let us know when he can respond to that Statement. 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.

Who is the Chairperson of that Committee? Sen. Ndiema, do you have some instruction on that?

Mr. Speaker, Sir, mine is also reading Chinese.

Mr. Deputy Speaker, Sir, I undertake to ensure that it will be responded to on Tuesday, next week.

Sen. Okong’o, is that okay?

It is okay, Mr. Deputy Speaker, Sir.

Next Order.

On a point of order, Mr. Deputy Speaker, Sir.

Sen. Munyes, why can you not move to the Dispatch Box if you have a point of order to make?

Mr. Deputy Speaker, Sir, last week, I requested a Statement which was supposed to be issued today regarding custom barriers at Nadapal Post along the border of Kenya and South Sudan. It was meant to be presented today.

From which Committee?

Mr. Deputy Speaker, Sir, from the Committee on National Security and Foreign Relations.

Sen. Haji is not here. Who is from the Committee?

Mr. Deputy Speaker, Sir, in view of the importance of this matter, I undertake to inform my Chairperson and we will present the response on Thursday, next week. Is it okay with you?

Sen. Ongoro, it is not in your place to ask the hon. Senator whether it is okay or not with him. You are exceeding your authority.

It is okay, Mr. Deputy Speaker, Sir.

Thank you, Sen. Munyes. Let us get the response Thursday, next week. It is so ordered.

Mr. Deputy Speaker, Sir, I raised an issue and Sen. Ndiema also said his card reads Chinese language and Sen. Munyes says his reads Russian language. All of them are members of my party and CORD. Is this some form of conspiracy against my party?

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.

Sen. Wetangula, I can say what you are saying clearly in English language. I think it is a typo.

Mr. Deputy Speaker, Sir, can it be corrected?

We shall check and find out what is wrong.

Is it a coincidence that this problem only affects me, my party’s national chairman and the distinguished Senator for Trans Nzoia County?

I want to hope it is not, but I undertake that we shall check and come back to you in due time. That brings us to the end of Statements. No more requests for Statements. Next Order!

Mr. Deputy Speaker, Sir, I beg to move:- THAT, the Senate approves the Report of the Mediation Committee on the Division of Revenue Bill, National Assembly Bill, No.15 of 2014, laid on the Table of the Senate today, 22nd July, 2014. Mr. Deputy Speaker, Sir, I am sure if Members have not received copies, they are available now. In view of the time, I want to be brief. I do not want to go into the history of how this Bill ended up in mediation. There are two issues that were raised by the National Assembly. The first one is on the amendment to Clause Four that we had made regarding a provision for adequate funding of Level Five hospitals; the second was amendment to the Schedule. Members of the Mediation Committee from our side; myself, Sen. Kagwe and Sen. Mutula Kilonzo Jnr. and three other Members from the National Assembly, hon. Mutava Musyimi, hon. Mary Emase and hon. John Mbadi - we looked at the two areas and we made some agreement which forms the basis of the report. I will be requesting the Senate to approve this mediation report. Mr. Deputy Speaker, Sir, in both of those areas, what we have agreed very briefly is as follows: With regard to the Schedule, the Committee noted that the removal of the 43 per cent as a representation of the percentage of the Kshs529 billion being the national revenue for the year 2009/2010 in line with Article 203(2) of the Constitution was one of the reasons the amendment was rejected by the National Assembly. We deliberated on that and agreed to reinstate the third column of the Schedule, but with a better explanation as a footnote. The explanation now reads as follows: “Based on the 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.

Thank you, Mr. Deputy Speaker, Sir. I rise to second the Report by the Committee. I would like to thank the Senators who participated in this process for sticking to their guns so that the sharable revenue remained as it was passed by this House at Kshs226.66 billion. Additionally, we managed to get an additional allocation of Kshs1.87 billion. Mr. Deputy Speaker, Sir, in seconding this Motion, part of the impression created at the National Assembly and which we must bring to the attention of the Senate is that the National Assembly thought wrongly that the Senate had taken a different position with regard to Level Five Hospitals. However, our position as the Committee was that the position of Level Five Hospitals is contained in the Constitution and not necessarily what they thought the Senate had passed in the previous Bill. Mr. Deputy Speaker, Sir, in recommendation Number 25, it is important that we mention on the Floor of this Senate that we have urged the 11 counties that have Level Five Hospitals to go further, do the costing and negotiate with the national Government so that Kenyans do not suffer because of lack of adequate facilities at these hospitals, which cover more than one county and yet they have been left as a burden of some counties where the said hospitals are situated. Mr. Deputy Speaker, Sir, as I second this Motion, I would like to make one last remark because it has raised some controversy. This is the issue regarding the 43 per cent. It is fair that we say so because the Constitution requires under Article 2013 that the percentage mentioned in the Schedule, that the Chairperson has mentioned, shall be calculated. So, the 43 per cent, although our position was that it would read that it is above 15 per cent, the Constitution requires that it should be calculated. But more importantly, it is the fact that the Senate must bear in mind that these figures are borne out of the 2009/2010 Budget, which says that we have some work to do so that the sharable revenue that we have come up with in the Schedule should ideally be more; but we have not complied with the Constitution. Mr. Deputy Speaker, Sir, I second this Motion and thank the Senate for giving us the mandate to mediate. I am happy to say that we have made history in the passing of this Mediation Bill in line with the Supreme Court order made last year. 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.

Thank you, hon. Senator.

Thank you, Mr. Deputy Speaker, Sir. I gather that my colleagues would rather like us to go straight into voting on this matter, but let me just emphasize one small item. This is to do with a big issue that came up when we were mediating this process on whether, indeed, Level Five Hospitals have been devolved or not. As we sit here today, the question still begs an answer, because if we stick to Article 187(2) of the Constitution which says very clearly that money must follow a function that is devolved-- - We are getting Kshs1.87 billion for those Level Five Hospitals. If that money is not enough and if the estimate is about Kshs9 billion to Kshs10 billion for running those hospitals, the question that the Senate should be asking itself is: Consequent to that, have we devolved Level Five Hospitals to the county governments? My answer would be “No, we have not.” Therefore, the Kshs1.87 billion that we are getting is an initial amount to start running those hospitals while the county governments within which those Level Five Hospitals fall will then go, identify and clearly find out how much money the hospitals cost and the national Government will then give that money to them. Failure to do this, the county governments should surrender those hospitals to the national Government. So, this is not just a simple matter. It is a serious matter. Mr. Deputy Speaker, Sir, I think the Committees of this House together with our counterparts in the Budget and Health Committees of the National Assembly must sit with the national Government to address the issue of Level Five Hospitals before we come here next time to discuss the same issue with the same problem. Last year, the money allocated to Level Five Hospitals was Kshs3.8 billion. This year, they have been allocated Kshs1.87 billion. Next year, we do not know how much will be allocated. We need to resolve this matter once and for all. Thank you, Mr. Deputy Speaker, Sir.

Thank you, Mr. Deputy Speaker, Sir. I just want to briefly make a point. First is to congratulate the Mediation Committee for doing a good job and particularly our representatives in the Committee, Sen. Billow, Sen. Mutahi Kagwe and Sen. Mutula Kilonzo Jnr. 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.

On a point of order, Mr. Deputy Speaker, Sir. I know that we will be moving to division very soon. However, I would like to thank the ladies and gentlemen who did a very good job in the Mediation Committee. This was the first time we were engaging in this very difficult process knowing the attitudes that surround this issue. How did we treat Level Five Hospitals in the last Budget?

On a point of order, Mr. Deputy Speaker, Sir. My point of order is also coupled with some information. We now have numbers in the House. I have been going round in the House alerting hon. Senators to get ready for voting.

What is your point of order?

Mr. Deputy Speaker, Sir, if it is possible, we should stop debate and go straight into voting.

That sounds reasonable. Sen. Kajwang is the only one on my list. I think it is only fair that he completes his line of thought.

Thank you, Mr. Deputy Speaker, Sir. Mine is very straightforward and short. If we treated the Level Five Hospitals as if they belong to the counties; where they exist, I need to know who pays their salaries. Do the salaries go to the counties where the hospitals are located? I am looking at the New Nyanza General Hospital, Coast General Hospital and Kisii Level Five Hospital; the eleven of them. If they were treated as county hospitals, then the Budget of last year would stay. However, the Kshs1.87 billion would be additional. It seems to me as if we have participated in reduction of the budget of the Level Five Hospitals for this financial year. Did I get hon. Mutahi Kagwe correctly when he said that last year, the budget was over Kshs3 billion and now it is Kshs1.87 billion? That means that we have not achieved much. If we do that, we will have hurt the hospitals.

Hon. Members, there are no more requests from the Floor. Does the Mover wish to reply?

Mr. Deputy Speaker, Sir, I want to thank all Members and to call upon all hon. Senators to support this Mediation Report so that we unlock the financing of the counties which is pretty urgent. 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.

This is a report on a Bill which affects counties. So, we will go into Division. In keeping with Standing Order No.74 (2) of our Standing Orders, I will now order that the Division Bell be rung for five minutes after which we shall proceed to vote. Anybody voting on behalf of a delegation should know that the rules are very clear. You have to register with the Clerks-at-the-Table and show that you have authority to vote on behalf of the leader of your delegation.

Order! For the sake of clarity, we are voting on the question that I have already put; THAT, the Senate approves the Report of the Mediation Committee on the Division of Revenue Bill (National Assembly Bill No.15 of 2015), laid on the Table of the Senate on Tuesday, 22nd July, 2014. We are all now used to the Electronic Voting. So, we will proceed under Standing Order No.74 (2). I want to bring it to the attention of Members that this will come out as a print out. Standing Order No.74 (3) is mandatory. During Electronic Voting, hon. Senators shall cast their votes by pressing either the “yes,” “no” or “abstain” button. There is a print out which will later show who voted “yes,” “no” or abstained. Hon. Senators, remember this is voting by Division where every Member will be shown how they voted if they were in the House. The otherwise is that you can be declared by the Speaker as disorderly and the sanctions are all here. The sanctions are here and are clear. So, this is not a question of choice and whether you are going to vote or not. The rules are clear. Standing Order No.74 (3) says that you should either vote “yes,” “no” or “abstain.” This is a Division Vote. I am bringing this to your attention because I will get a print out that will show how everybody in this House voted. I think we can now proceed to vote. The Clerks-at-the-Table will let us know when they are ready for us to vote.

What is it Sen. Murkomen?

Mr. Deputy Speaker, Sir, every vote here is very important. I am trying to assist my colleague Sen. Chiaba who is unable to vote, for technical reasons, with his card. I just want to inform him that when he is not doing that, he can do it analogue by recording at the Clerks-at-the-Table.

So, why are you talking for him because he can still come to where you are and speak without a card?

Mr. Deputy Speaker, Sir, even his button cannot work.

Why are you representing him?

Mr. Deputy Speaker, Sir, I am his lawyer.

Sen. Chiaba and anybody else who may have that problem---

Sen. Bule, what is the problem?

Mr. Deputy Speaker, Sir, I lost my card. I am using a temporary one and I do not know how to apply for a new one.

If you had not interrupted me, I was going to explain to Sen. Chiaba how it is going to be done. So, if you can take your seat now, I will explain to you.

Okay, Sir.

Standing Order No.74 (5) provides for manual voting when the Speaker is satisfied that for good reason the Senator would not be able to vote electronically. Once everybody else has voted, those of you who do not have your cards or for whatever reason are not able to vote, you approach the Clerks- at-the-Table and you will be shown how to vote manually and your vote will count. Since you are in the House, you must vote one way or the other. Are you satisfied?

Yes, Mr. Deputy Speaker, Sir.

Then let us proceed to vote for one minute.

Hon. Senators the vote is in. Those who voted electronically were 24 and those who were assisted to vote were six. So, the total vote was 30.

You can now draw the Bar. Next Order!

Now, this Bill had been proposed, seconded and the Question proposed. So, we are now proceeding to debate.

.: Mr. Deputy Speaker, Sir, I rise to support the Bill although we have discussed it at length in the Senate Committee on Finance, Commerce and Budget and have proposed some amendments to it. The amendments are informed by the fact that there are reports indicating that, in fact, the county governments are spending up to 70 per cent of their revenue on Recurrent Expenditure. Some counties-- for example, Nyeri County is spending 19 per cent on development. Therefore, we have suggested that we upscale the amendment from 30 per cent development expense to 40 per cent and not 60 per cent because it might cause some problems in the county. We were informed by the Controller of Budget that the majority of the counties, in 2014/2015 have allocated 42 per cent of their total budgets to development expenditure which 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.

Mr. Deputy Speaker, Sir, I rise to support this Bill. I would like to congratulate my co-sponsor of this Bill, Sen. (Prof.) Kindiki, for moving it with passion, great information and well researched notes. I would also like to congratulate Sen. (Dr.) Khalwale for seconding this Motion with a lot of well researched comments. Devolution was meant to ensure that there is development in the counties. If you read Article 174 of the Constitution, the focus for devolution is development. If you look at the functions that have been devolved, those functions are functions that are geared towards greater local development. If you look at issues like agriculture, health, distribution of water and all those social issues that have been devolved, you will realize that devolution is key to achieving Article 43 of the Constitution which is socio- economic rights. Mr. Deputy Speaker, Sir, there have been arguments about why counties are unable to spend more money on development. One of the arguments has been that counties have inherited a lot of staff that used to serve the local authorities in the past and those who were serving the Central Government in their respective jurisdictions in those counties. The truth is that there is no law that makes it mandatory for counties to absorb all the staff they found in their counties. In fact, the law is very clear. It says that the counties can rationalize, assess, look at the staff that they need and look at the functions that have been devolved. Even if a particular person was performing a particular function in that particular county and they think in their own assessment that that person is incompetent to deliver that service in a manner that the people of that county can be proud of services in their county, they can dispense with that person. The responsibility of rationalizing staff, redeploying them and finding a different responsibility for them is not for county governments. It is the responsibility of the national Government and the Public Servcie Commission to now sit down and say, out of the 1,000 staff that we had in Elgeyo-Marakwet, they have only chosen to stay with 200 staff. Where are the 800 going to work and what responsibilities are they going to perform? That is not a responsibility for counties. Some counties are carrying a burden that was not given to them by law. What is expected is to ensure that those counties can 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.

Madam Temporary Speaker, that is the position and you can see that the Senator for Kisii agrees with me. We need to have an honest conversation 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.

Thank you very much, Madam Temporary Speaker. I want to say one or two things about this very important Bill. Madam Temporary Speaker, when we say 40 per cent and 60 per cent, we are not quite sure what it amounts to. Unless you do the costing and we are advised by experts on the actual costing of what it is that these counties do in terms of paying out certain sums as recurrent expenditure, we might say: Okay, let us move the amount for development to 70 per cent, when 30 per cent that is remaining cannot pay the staff, assemblers and for all those things that should be paid for as recurrent expenditure. So, we needed advice. That is why when I was listening to Sen. Mutula Kilonzo Jnr., I thought that when he was making his contribution, he said that he has received advice from the Controller of Budget that after looking at the budgets in terms of what they used to pay salaries, allowances and buy fuel and all those things that are called recurrent expenditure, it seems like it comes to about 40 per cent to 42 per cent overall. With that kind of expert advice, then that is where we should link it, so that there is no wastage. I am sure that she has looked at what they spend on travel and many other things and come to a conclusion that 40 per cent to 42 per cent is where to settle, so that we do this. Madam Temporary Speaker, I know that there are constitutional questions about this; whether the Senate can enact a law that would then put the other assemblies on a straight jacket. I know that, that will come as a constitutional question. It might even go to the Supreme Court, but for the moment, what has alarmed us and the reason we are debating this is that at one time, I went home and my own Member of the County Assembly told me that he had just come from Singapore. I asked him: “What did you go to do in Singapore?” Almost all the Members of the County Assembly had gone to Singapore. I know where Singapore is and the amounts of monies that you will spend on flights, hotels and allowances. This is almost looting and it cannot be the case. At least, Sen. Murkomen said that some of them have gone to Jerusalem. It is better to go to Jerusalem because, at least, you can pray there. But this idea of going to Singapore, China and so on just to enjoy--- What is this benchmarking business between Homa Bay County and Singapore? Singapore is a port, largely, and Homa Bay is not a port. Singapore is an industrial country and business hub while Homa Bay is still in 80 percent rural agriculture. So, 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.

Madam Temporary Speaker, I also rise to support the amendments knowing that we shall agree to bring the percentage to 46. As I say that, I know each county has its own challenges and achievements. When you look at the report of the Controller of Budget, you will find that most governors have budgeted in a way that they will be able to consume 40 per cent going up. It is very unfortunate that indeed as my colleagues have said, we need to ask ourselves about the money that has been decentralized. The lowest constituency will be getting Kshs95 million and it would be important to know how the constituencies will work with governors to ensure that services reach our people. It is this Senate that is supposed to ask questions about all the devolved funds. It seems everyone is focusing on what the governor is getting but we are not looking at what the whole county gets. Therefore, we might lose out when we just focus on what the governor is getting. If a county has four to five constituencies, we are talking about Kshs600 million or Kshs700 million. The most important thing is the Senate to ask itself whether all elective positions must have a fund. Since Kenyans believe in tangible results and not legislative results, let 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.

Sen. Mutahi Kagwe.

Thank you very much, Madam Temporary Speaker. I also rise to support the Bill. In doing so, I also wish to bring up something that Sen. Kajwang also mentioned here. It is all very nice for us to say that we should spend 30 per cent or 40 per cent, but if you look at the Schedule of the expected expenditure on development, you will see that, for example, the Nyeri County is budgeted to spend 19 per cent of its resources for development. It is not out of choice that, that money has been put there, because I have looked at the figures. But, the question is, it is 40 per cent of what? It can be 40 per cent of Kshs100 or 40 per cent of Kshs2,000; et cetera . The reason why a county will budget 19 per cent and another 15 per cent is because of its expenditure base. We cannot escape from the reality of what we are taking over from the national Government. If you look at counties like Kisumu and Nakuru, you will find that inevitably, their expenditure on development is going to be lower, the reason being that they are carrying a lot of expenditure on human resources. Most of those people are actually people who used to work for the provincial administration and, now, as we sit here today, those people are still in those offices. You all heard about the rationalization that is supposed to be taking place by the Cabinet Secretary (CS) for Devolution and Planning. Those of us who had provincial staff are really looking forward to seeing how that is going to be done and, indeed, whether it can be done in a very short time. The reason for rationalization is not just to do with the numbers per se but also the quality of the people who are being taken over by the county governments. In fact, on the outset of devolution, what happened is that a lot of national Government staff who had discipline cases were sent as seconded personnel to the county governments.

Shame! 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.

Madam Temporary Speaker, this is something that is known to this House and to the Governors – if you speak to the Governors, they will tell you that they have a lot of staff that they do not need. However, as anybody with experience in Government knows, it is not very easy to retire staff from public offices; it not very easy to fire staff from public offices either. In fact, we have situations in Nyeri County where we have a huge number of people who are supposed to be livestock inspectors and agricultural officers who sit in Nyeri Town and in the last many years, they have never visited a farm within Nyeri County. When the Governor proposed that these people get motorbikes so that they can be visiting the farms, a lot of them opted to resign; only that there was no scheme to do so. So, you will find that the issue of quality is as important as the issue of quantity. So, Madam Temporary Speaker, what we are saying is that we prefer that every county, indeed, should be given the capability of using at least 50 per cent of their money on development because devolution did not create a personnel office whose job is simply to pay people; that is not the idea! The idea is to utilize those people so that they can bring development to the counties. But if we do not assign sufficient funding for those counties and if, as I was saying earlier in the day, we devolve functions to those counties and we do not devolve the requisite amounts to enable them to function and to carry out those responsibilities that the national Government was carrying out, then you will find that money meant for development will still be used for recurrent expenditure. Madam Temporary Speaker, we are hoping that when the Public Procurement and Disposal (Amendment) Bill comes to this House, a few things are going to happen; one, is that we are going to ensure that 30 per cent of the procurement from the monies allocated are actually given to youth and women. But even if we sign in this House that, that is what is going to happen and you do not have the money to spend on those development issues, then even the 30 per cent we are talking about procuring will be an insignificant amount. Therefore, we need to focus on this issue; we need to work backwards rather than forwards. In other words, the way to do this – and we should also consider this aspect when we look at the formula that the Commission for Revenue Allocation (CRA) brings to this House – when we are considering that formula, let us work backwards; let us ask ourselves “what is the expenditure base of the various counties?” Then, after that, we can talk about adding the 40 per cent for development. But if you simply give a county a certain amount of money and expect that automatically, 40 per cent of that money is going to be spent on development, I think we will be behaving like the proverbial ostrich – simply burying our heads into the ground and assuming that everything is okay. The only thing we can be sure about is that it will not be okay and we will not achieve the 40 per cent that we are talking about. Madam Temporary Speaker, the Committee on Information and Technology, which I chair, in conjunction with the Committee on Finance, Commerce and Budget, which I am also a Member, intends to bring to this House what we are calling the County Resource Management Transparency Bill. This Bill will mandate the county governments 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.

Thank you, Madam Temporary Speaker. I also stand to support this Bill that seeks to set some order in financial management and budget control. This Senate should not be seen to be assuming the roles of other organs of Government. It should be 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.

Thank you, Madam Temporary Speaker. I rise to support this Motion. In supporting the Motion, I wish to state that in view of the contributions that have been made by my colleagues, at this time, we should rethink whether it is 40 or 60 per cent which is adequate and whether there are constitutional issues about this Bill. The fact remains that today we have just voted for the Division of Revenue Bill and hot in pursuit is the County Allocation of Revenue Bill. Last year, we voted for the allocations to the counties and all the billions that we voted to go to the counties went into a basket that had no control. The basket that we sent those billions into was completely devoid of any rules of how to spend the money other than the very few structural rules which indicated how much would go to the county assembly and the executive arm of the county government. All the complaints that we are having about the mismanagement of resources is actually a direct result of that oversight. As the Senate, the Constitution mandates us to oversight counties and we cannot shy away from that responsibility. The long and short of this is that eventually we must come up with rules and regulations within the law that are going to guide the allocations that we are going to give to the counties. Madam Temporary Speaker, if fiscal responsibility failed at the county level, there is no way devolution would be claimed to be a success. It would never succeed. In simple analysis, if the common mwananchi at the grassroots does not feel the effect of the resources that have gone to the county; if they do not see responsibility on the part of Governors on how their resources are being spent, for example, roads being done, change in the education sector, medicine being availed in the local dispensaries and change of attitude that we have witnessed in the spending of the resources of the county, then it does not matter how important we rate devolution. It does not matter the kind of plans we come up with; devolution will be deemed to have failed. I wish to remind ourselves and the country that the issue of resources that go to the counties is a matter that this Senate has gone to court for. I wish to congratulate the Mediation Committee that sat to mediate between the Senate and the National Assembly on this Bill. Last year, we were forced to go to court to ensure that the counties got the allocations. If we are taking this trouble as the Senate to ensure that those resources have been taken to the counties, if we then do not also equally up our game and ensure that we follow it up with another law to show how it should be done, then we will have failed. For actual progress to be seen at the county, the leveraging of resources must be done responsibly by Governors. It should not only be by Governors, but also by the county assemblies. I remember two weeks ago, I was attending one of the meetings of the Senate and it was reported to us that the Parliamentary Service Commission (PSC) has received 14 letters from 14 different countries that have said that they are no-longer willing to host 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.

On a point of information, Madam Temporary Speaker.

Senator, do you wish to be informed by Sen. (Dr.) Khalwale?

Yes, Mr. Temporary Speaker, Sir.

Mr. Temporary Speaker, Sir, I just wanted to inform the Senator for Kiambu that he should not only have on his mind the County of Kiambu about this foreign travel. In fact, in Kakamega and Vihiga counties, the business of the assemblies had to be adjourned because all the MCAs had either gone to Israel, South Africa or Uganda.

Madam Temporary Speaker, I thank my colleague, the Senator for Kakamega, for that information. Indeed, just in addition to the point that the Senator has informed me on, it is not only the county assemblies, but as a Committee, there was a time when we made a visit to one of the counties and we could not find even one county executive committee member. All of them had also traveled. This is the kind of responsibility that we are saying must be seen now to come from the Governors. Madam Temporary Speaker, I know that it is very controversial, but one question that, as a country, eventually we might have to deal with and give an appropriate answer to is: Do we want Governors to continue to be selected from politicians? All the debate that we have heard here today from my honourable colleagues, about ceremonies that are elaborate and expensive and the wanton spending of money at the county level; sometimes all this is just in the play of politics. For example, how on earth is the Governor for a county like Nairobi expected to take up the role of leading this county, be a politician and balance all the competing political interests? Let us imagine all the Governors in all the metropolitan counties like Nakuru, Kisumu, Mombasa and Kiambu where we have so many communities and competing political interests. We should ask ourselves, as a country, whether we should continue to pick our Governors from the political class. The question whether they should continue being elected the way we do is one that we have to deal with, so that we can probably attain a threshold where we can have a Governor who can be there just to deliver services professionally, without having to balance political interests or look at political survival. If we have not sorted that question, then we cannot complain that a Governor who brought in women or school children to sing in an occasion. This is because if he does not do that, the Senator will do it. If the Senator does not do it, then the Member of the National Assembly will do it and they have to compete on the same threshold. I think that, that is a very important question that we have to address. 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.

Thank you, Madam Temporary Speaker. I rise to support this Bill and congratulate the authors. Madam Temporary Speaker, we know very well that devolution came so that development can be achieved at the lowest level of this nation. I truly believe that if we go by the spirit of the Bill, we will achieve a lot. I want to support one of the amendments that one of my brothers, Sen. Mutula Kilonzo Jnr., proposed; that we may not really achieve the 60 per cent allocation for development. But, at least, we can improve from the current 30 per cent to about 40 per cent. Let us also note that we are talking of a percentage of some amount. So, the most important thing that this Senate should be asking itself is: How much money are we talking about? This year we are talking about 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.

On a point of order, Madam Temporary Speaker. Would I be in order to congratulate the Senator for Kajiado for saying that the Constitution should be amended to increase the funding to counties and therefore by extension supporting the referendum?

Proceed Senator.

Madam Temporary Speaker, I think Sen. (Dr.) Khalwale would always want to get supporters but not maybe in the Senate. I said that and I stand by it. We really need to look at how to make sure we have enough resources going to the counties. If we do that, the issue of 40 per cent or 60 per cent would be something achievable. We would be talking of 40 per cent of good money because we might be talking of 40 per cent of very little money. Suppose you are talking of 40 per cent of Kshs1 billion which goes to Lamu, this is an insignificant amount. So, we support that and I support an amendment where we will stand for 40 per cent for development and 60 per cent for recurrent expenditure. Madam Temporary Speaker, people have been talking about the way our Members of the County Assemblies (MCA) have been going out to benchmark. I do believe that they have been going to learn so that we can have the best at the counties. I believe that the only thing we can tell them is that they should not be over-excited. Let them just benchmark where necessary. For those who just want rides, they should make sure that the resources go for development instead of visiting other countries. I am looking at the time when our counties started implementing development projects which are factored in their budgets. I think it is just this year around January or February. Given that they never had structures before, I want to congratulate them. They have already done well if you look at the structures they inherited and they have also gone ahead and employed new people. Because of this, we should congratulate them for performing well. The only other thing we need to look at is the quality of work and the standards. You will find that a lot has been compromised simply because they do not have the expertise. We have some institutions like the Kenya Rural Roads Authority (KeRRA) which are not working with governors. This has really compromised the standards of the county roads which are being done. It is my wish that KeRRA works together with the Governors so that the standards and quality of work can be maintained. Madam Temporary Speaker, I believe that we need to bring some soberness in the counties. You will find that we have very narrow roads in some areas. Our governors should not put money on such roads. Let them first make sure that the road is widened to about nine metres to achieve the required standards. So, when a road is done, you really see something of good quality. 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.

Madam Temporary Speaker, I support the Bill. I also join those who wish to bring some amendments. We should work relative to what we see in the national Government. In my view, for the sponsors of the Bill and I can see the young Sen. Sang here, the ratio of 40 per cent to 60 per cent maybe reasonable so that we have 60 per cent going to recurrent expenditure and 40 per cent going to development. I say this for the simple reason that the philosophy behind devolution was for development to reach areas that were hitherto unreachable in this country. There are many areas in this county that were completely forgotten, ignored and became no-go zones. Politicians from the national level only turned up in such areas to compromise poor villagers and harvest votes. They used to play the ethnic card, the sub-ethnic cards, bring the conglomerates together calling themselves KAMATUSA or wafugaji even when they are not wafugaji . Immediately after elections, those people are forgotten and they will come back after five years. We devolved to bring money and development down to the grassroots. Today, the level of obscenity and opulence witnessed in the counties is revolting. When you go to the counties, you will find a ward administrator in the village is being paid a higher salary than a DS in the national Government. They have a salary and house allowance even when they are living in their own homes. 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.

Shame!

Madam Temporary Speaker, these are the obscenities that we must curb. This money goes to the counties for development and we want to see some rationalization. That is why this lady who makes a lot of irrelevant noises called Mrs. Serem; that is the area she should be focusing on instead of dealing with irrelevant issues. When we devolved power and resources, it was expected that the Governor lives in the county where life is cheaper. The people working would be about 80 per cent from the county, where life is cheaper. They would save the money, go and make roads, bring water, schools and everything that the people desire in their counties. But what do we have today? If you go to every county and ask, first of all, about the bloated wage bill, for example, I visited my friend, Governor Oparanya in Kakamega and I was shocked to find out, when he showed me his figures, that he has almost 82 per cent recurrent expenditure. So, he is left with just about 18 per cent or less for development. In such a vast county, the roads are impassable, there is no water, there are no nursery schools, the hospitals have no medicine and yet we have devolved all the medical services. This is where you will now find crooked people supplying chalk as quinine to people; and supplying all manner of contraband in lieu of good services to people. What must we do, Madam Temporary Speaker? First of all, I want to urge my colleagues across the Floor that even if we do not agree on anything else, let us agree to take money to the grassroots for development because we need those tarmacked roads. We need, at least in the 10th year of devolution if not less, to see and it is my dream to see that every household has running water; it is my dream to see that, after 10 years of devolution, nobody is unable to reach home when they want to go home because there is a bad road. Yesterday, a friend of mine invited me to go to Kajiado, where my good friend, Sen. Mositet, comes from. After Ngong, we were to go to a place called Kibiko, Kibicho or whatever they call the place. After five or ten kilometers, we turned back because there is no road; it is a cattle track and no car can pass there! Only lorries going to look for farmyard manure in the valley can climb through that road. This is, in fact, the second year of devolution and that is a critical road running from Ngong Town to Suswa, then on to Maai Mahiu and back to Magadi and it is 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.

Madam Temporary Speaker, is the Senate Minority Leader in order to mislead this House that the President and the Deputy President have given roadside declarations while the truth is that they were giving advice to heads of schools based on the law? The Kenya National Examinations Council (KNEC) Act provides for the same. Is he in order?

Minority Leader, what exactly did you mean?

Madam Temporary Speaker, if my distinguished colleague from Nandi cared to read Article 135, he would see that it states as follows: “A decision of the President on the performance of any function of the President under this Constitution shall be in writing and shall bear the seal and signature of the President.” A matter as momentum as directing the release of certificates costing Kshs14 billion cannot be a roadside pronouncement. It cannot be pronounced in a funeral. It cannot be pronounced in a Harambee. They have to sit and as Cabinet make a decision, sign, and seal and send it out for obedience or for challenge. I am sure, as a good lawyer, he knows this. 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.

Senate Minority Leader, you have a balance of 45 minutes. So, you can proceed when we next have this Motion. It is now 6.30 pm. The Senate, therefore, stands adjourned to tomorrow, Wednesday, 23rd July, 2014 at 2.30 pm. The Senate rose at 6.30 p.m. 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.