(Sen. (Prof.) Kindiki): Hon. Senators, I have a Communication to make regarding the inaugural sittings of the Senate outside Nairobi. You may recall that on the 21st June, 2018, the Senate, pursuant to Article 126(1) of the Constitution and Standing Order No.31(1) of the Senate Standing Orders resolved that its plenary and committee sittings for the week of 24th to 28th September, 2018, be held in Uasin Gishu County. The inaugural sittings of the Senate outside Nairobi will accord this House the opportunity to showcase and entrench the place of the Senate as the institution mandated to represent and protect the interests of counties and their governments as highlighted in Article 96 of the Constitution. These sittings will also provide Senators with the opportunity to interact directly with county governments and the citizens, to understand their challenges and identify opportunities in which the Senate may initiate legislation or take other measures to ensure that devolution succeeds. In preparation of the sittings, the Senate has been working closely with the Uasin Gishu County Government – both the Executive and the Assembly – to ensure that the plenary and committee sittings of the Senate run smoothly. A programme of activities has been prepared and includes events such as committee sittings, Senate plenary, public hearings and site inspections or visits. The detailed programme of business to be transacted during the week will be outlined tomorrow, Thursday the 20th September, 2018, by the Senate Majority Leader during the Statement on the Business of the Senate for the coming week. 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): Order, Sen. Poghisio. The opportunity accorded was to make your way to your chair and not for greetings and other extraneous activities.

Hon. Senators, I have a second communication to make. VISITING DELEGATION FROM ST. PAUL’S KYAMUTHEI SECONDARY SCHOOL, MAKUENI COUNTY Hon. Senators

Thank you Mr. Speaker. This petition reminds us, particularly Members who were in this House during the last Parliament like yourself, of the long protracted issues we have argued on this Floor on IDPs. The citizen from Kibera is speaking for many other displaced persons. I recall the Senator for Murang’a then telling us of IDPs who had been displaced from their businesses and not from their farms who have not been addressed, and in areas where people did not go to live in market centres, schools and churches, people described as integrated IDPs who were living with families of friends and relatives scattered all over. We were told that Ksh25 billion was expended on resettling IDPs in a very erratic manner because, in some areas, people were being paid Ksh400, 000 while in other areas, Ksh10, 000. 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): Thank you, Sen. Moses Wetangula.

Thank you, Mr. Deputy Speaker, for allowing me to add my voice to this petition, which is very important. The state of the people living in slums is quite pathetic and many Kenyans are really suffering. I visited Kibera and other slums in Nairobi and was shocked. I preferred to live in the village rather than living in the slums. The slum dwellers are exposed to many dangers and risks, especially the young ladies who are exposed to many dangers, including poor parents who struggle to feed their children by doing all manner of jobs. It is even worse for the IDPs who struggle. I congratulate the reverend who got concerned on behalf of the IDPs and brought the petition. It is my prayer that the Senate will find a solution to this matter. Many a time, people have lost their lives in the slums as a result of fire, and the causes of these fires have never been established. Last night, I understand many people lost their property and everything at Mukuru Kayaba Slum including more than 100 people who come from the northern part of Kenya especially, Marsabit County. These are people who need our attention. I am sure the super Senator is aware of that and he will bring---

(Sen. (Prof.) Kindiki): Order, Senator! Which Senator is that?

Sorry.

(Sen. (Prof.) Kindiki): Order! Sen. Naomi Waqo.

I apologise for that, I meant Sen. Sakaja, if you do not know that, I apologise.

(Sen. (Prof.) Kindiki): Order Senator! It is not about knowledge; we do not have any Senator by the title you have used in this Chamber.

My apology, Mr. Deputy Speaker. I meant Sen. Sakaja.

(Sen. (Prof.) Kindiki): Very well. Sen. Sakaja, you should be on a point of order.

Proceed, Sen. Waqo.

Last night, many people lost their homes and properties, making them IDPs with no food or a place to sleep. I was informed that more than 100 people from Marsabit County have lost their homes. When we talk about slums, it does 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, the topic of Internally Displaced Persons (IDPs) is a really sad story in Kenya. While overseas, I watched Kenyans chasing and slaughtering each other with pangas on matters of election and democracy. It was appalling. The end result of that is the fact that we have the IDPs. Having IDPs in their own country is just hard to understand. How could people be displaced in their country when the Constitution says that Kenyans can live anywhere in the country? If there is such a Constitution, how could people have been displaced? Mr. Deputy Speaker, Sir, the idea of displacement came with a lot of robbery. Many of those people lost their property, homes and farms. They were sent back to the counties from which they came. This in itself is an affirmation of tribalism; that if you belong to the Kikuyu tribe, for example, you should always be in those regions that are supposed to be for the Kikuyu. If one is from Marsabit or Turkana counties, they should stay there. That is not the Kenya we want to see. We want to see a Kenya where Kenyans can live where they please. Even though we say that money was to settle IDPs, even giving that money alone was not enough. There should have been some investigation; to find out where those people lived before, the kind of property they had and what they lost. That would have been good because they would have reclaimed the property they used to have before being displaced. I know many IDPs within Turkana County who are living in terrible conditions. They were put in a hostile part of the county without water, food or any form of support. In fact, those structures were built so badly that nobody would be able to live there. If you drive to a place called Lokori, before you get to the town, you will find the structures for IDPs that were built. Those structures do not harbour anybody; they are just lying there and disintegrating. That means that the money that was allotted for settling 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): Thank you, Sen. (prof.) Ekal. Finally, let us have the Senator for Nairobi City County, Sen. Sakaja, who likes adding a non-official and informal prefix on his name.

Thank you, Mr. Deputy Speaker, Sir. It is the people who voted for me in Nairobi City County who added that prefix. Who am I to disagree with them? Mr. Deputy Speaker, Sir, allow me to speak in Kiswahili. I know I have started in English, but I want to ask for your indulgence.

(Sen. (Prof.) Kindiki): Start afresh because you have started in English.

Asante, Bw. Naibu Spika kwa kunipa nafasi hii. Kwanza ningependa kumshukuru---

(Sen. (Prof.) Kindiki): Order, Sen. Kang'ata. I know what has happened to you recently. Nevertheless, order and congratulations!

Asante. Nampa Sen. Kang'ata heko kwa kupata jiko kirasmi. Hapo awali alikuwa hajapata jiko. Bw. Naibu Spika, kwanza ningependa kumshukuru Rev. Muganda ambaye ameleta ombi hili katika Seneti. Ni kweli kuwa watu wetu wengi sana wameumia katika Jiji la Nairobi. Hasa nazungumza kuhusu wale ambao walifurushwa kutoka kwa makao yao kule Kibera. Najua kwamba idadi haiwezi kuwa ile amesema, lakini kuna watu ambao walifukuzwa wakati ule. Watu wengi wamekosa nafasi ya kurudi na kuanza maisha yao---

(Sen. (Prof.) Kindiki): Order, Sen. Cherargei. You are engaged in disorderly conduct. 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.

Bw. Naibu Spika, hawa ni watu ambao tangu wafurushwe makwao, wamekuwa wakitazama kwa runinga kwa miaka wengine wakipata fidia katika maeneo mengine ya taifa letu. Hili ni jambo ambalo lazima liagaliwe kikamilifu. Hatutazungumza mambo ya IDPs milele katika taifa letu. Wale IDPs waliopata fidia ni wale waliokuwa kwenye mahema. Hata hivyo, tunajuwa kuwa katika jamii zingine ni vigumu sana kuwacha watu kwa hema. Watu walijiunga na wengine. Kwa lugha ya Kimombo wanaitwa integrated IDPs. Wengi wao ndio wako na hii shida na ni muhimu kuangalia jambo hili. Kuna wale ambao walifurushwa wakati wa ghasia baada ya uchaguzi wa 2007. Lakini pia kuna wale ambao, kama alivyosema Sen. (Rev.) Waqo, huathirika wakati kuna mikasa kama ya moto ambayo huendelea. Kwa mfano, jana kumekuwa na mkasa wa moto kule Mukuru na Hazina. Nimetoka Pumwani na idadi kubwa ya wananchi walikuja pale kwa sababu wengi wao mali yao imechomeka kule Matopeni, Majengo. Hawa wananchi wanahitaji kujenga makao yao. Wanahitaji misumari, blanketi, chakula na vitambulisho. Watoto wao hata hawana nguo za kwenda shule. Bw. Naibu Spika, ni jambo la kusikitisha kwa sababu, kama kiongozi, wananchi kama hao wanapokuja kwangu, siwezi kuwaaambia kuwa sina msaada. Ili niweze kuwasaidia ni lazima niingie mfukoni. Hata nikimaliza shughuli hapa ni lazima niende kuwasaidia. Mbunge katika Bunge la Taifa labda atatumia hazina ya National Government Constituency Development Fund (NG-CDF) kuona vile atawasaidia. Gavana ana kitita kikubwa sana ambacho ni mabilioni ya pesa, lakini sisi tunakosa uwezo wa kuwasaidia wananchi wakipata shida kama hizi. Shida hizi zote hutokana na mambo ya ardhi. Watu wengi wanafurushwa kwa sababu kuna mabwenyenye ambao wako na vyeti vya kumiliki ardhi. Wanataka kuwafurusha kwa kuteketeza ili waweze kuchukua makao hayo. Nimefurahi leo kwa sababu katika Gazeti Rasmi la Serikali, yaani Kenya Gazette, kuna Hati Miliki nyingi sana ambazo zimepigwa marufuku kwa sababu zilikuwa za ardhi ambayo wananchi wamenyang’anywa. Bw. Naibu Spika, nimgeomba Kamati ambayo itapata ombi hili kutuhusisha kwa sababu jambo hili linahusu watu wa Kibera. Najua kwamba wengi wameumia sana. Juzi wengine walifukuzwa pahali panaitwa Kwa DC kwa sababu ya ujenzi wa barabara na wakaachwa hivyo. Ni jambo la uchungu sana ukiona watoto wakikuangalia kwa matumaini; wamekosa imani na hawajui watafanya nini. Ningependa Kamati hiyo ituhusishe, na sisi kama viongozi, tukumbuke kuwa maisha ya Mkenya wa kawaida au mnyonge ni lazima iwe muhimu kwetu. Tusiwe tu tunaangalia maneno ambayo yanatuhusu kama viongozi na kusahau yale ambayo yana husu Wakenya wa kawaida au wanyonge. Tuna sahau yale ambayo yana wahusu Wakenya wa kawaida, walio wanyonge. Ingekuwa ni Wakenya wale mabwenyenye ama wale ambao wana uwezo katika makao ya Karen, Kileleshwa au Kilimani ambao hawana makao, ambao idadi kama hii imesemwa kwa Ombi hii, tungekuwa na shida kubwa sana. Lakini kwa sababu mara nyingi tunasema ni Mkenya mnyonge ambaye labda hana uhusiano na wewe, tuna wachana nao. Tukumbuke kila siku ya kwamba hawa ndio tunafaa kuwakilisha. 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): Asante Sen. Sakaja. Umejaribu sana ingawa ume endelea kuita wakimbizi wa ndani IDPs . Ungetumia IDPs halafu wakimbizi ungesema: Wakimbizi wa ndani. Nguo za kwenda shule nazo ni sare. Very well. Sen. Olekina, I had said that Sen. Sakaja will be the last intervention.

That is okay, Mr. Deputy Speaker.

(Sen. (Prof.) Kindiki): Thank you.

Order Sen. Pareno. Hon. Senators, pursuant to Standing Order No. 226(1), the Petition should be committed to the relevant Standing Committee for its consideration. In this case, I direct that the Petition be committed to the Standing Committee on National Cohesion, Equal Opportunity and Regional Integration. In terms of Standing Order No. 226(2), the Committee is required, in not more than 60 days from the time of reading the prayer, to respond to the Petitioner by way of a report addressed to the Petitioner and laid on the Table of the Senate. Thank you.

Let us move on to the next Order. We do not have Notices of Motion or Statements. Let us move to the next Order.

(Sen. (Prof.) Kindiki): Very well. Hon. Senators, we are now continuing with the debate on the item appearing under Order No. 8 which relates to the Approval of Report on the County Governments Cash Disbursement Schedule for 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.

Mr. Deputy Speaker, I already spoke on this.

(Sen. (Prof.) Kindiki): Okay, thank you.

Thank you, Mr. Deputy Speaker, for giving me an opportunity to contribute to this Motion on the Cash Disbursement Schedule for the Fiscal Year 2018/2019. This Motion would not have come at a better time than now, when we, in the country, are alive to the fact that Kenyans are concerned about the collection of taxes, specifically on the imposition of the eight per cent Value Added Tax (VAT). This is a conversation that all Kenyans should be having at the moment. When we sit in this House and talk about the Division of Revenue Bill which then sets out the amount of money that each county should be able to get, it is important for us to have a Schedule that can be followed effectively to ensure that counties receive their monies on time. I commend the Committee on Finance and Budget for having done a very good job in pointing out where there were typographical and mathematical errors. For us to develop as a country, the county governments must receive their money when they are supposed to receive it. Going through the Report which was adopted by five Members of the Committee, I am concerned that certain aspects were not there and this has to do with the release of the Kshs9.1 billion which is supposed to pay for the medical equipment. It is imperative for the National Treasury to clarify when these funds will be released to the counties for us not to have to come up with an amendment. The Constitution is very clear that when funds are being released to the county governments, it should be done without any unnecessary delay. Although I support this Schedule, for I want the people of Narok County to receive their money on time, this House approves this Schedule every year, but the question is: Do counties receive their money when they are supposed to receive it? If they did, we would not be having a problem of unpaid bills. I know that the other Senators who spoke about this Motion yesterday including Sen. Omogeni and Sen. Kibiru raised questions regarding the Integrated Financial Management System (IFMIS). Everyone blames the IFMIS for the delay in the disbursement of money. I see it differently. I think that we must come out and be honest by telling Kenyans that the problem is that we have one payment system where the National Treasury controls when the money will be released. It is embarrassing to find that County Executive Committee Members (CEC’s) in charge of finance spend most of their time in Nairobi begging the National Treasury to release the money that they are supposed to receive. I think that we have to ask ourselves a question as Kenyans: Are all these expenses and development projects, including the Big Four Agenda, really necessary at this point? They are very good on paper but in reality, are people getting money? Yesterday, we sat here and discussed the issue of Pumwani Hospital. We gave our views on what should have happened. When I stood it was rather unfortunate that I had only two minutes. 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): Very well. Thank you. Proceed, Sen. Mithika Linturi.

Mr. Deputy Speaker, Sir, I thank you for giving me this opportunity to speak on this Motion. From the onset, allow me to announce to the people of Meru, as part of my mandate, that today, out of this Schedule, Kshs8,007,000,000 will go to them. I would like them to know that as the Senator for Meru; we are busy trying to pass the disbursement schedule to ensure that the whole country has money to run the affairs of the counties. We are passing this schedule to release the money but a few questions must arise. As we do this, we must appreciate that the money that we are sending has to be applied and used according to the County Integrated Development Plans (CIDPs) and other approved programmes in the counties. This is not the first time that this schedule is being passed by this Senate. The amount of money we are trying to approve for disbursement is for the Financial Year 2018/2019. This means that we are not likely to sit to discuss on a disbursement at any other time within the current Financial Year. We are surprised when we get to our counties and relate with the suppliers and contractors, especially, when they share experiences with us regarding delayed payments for services rendered. I am sure the aspect of pending bills and late payments to contractors is not a new phenomenon. This is happening, not only in the county governments but even in the national Government. This being the first time, probably, that money is being sent to the counties after the passage of this Motion, the law provides that the first charge in any Financial Year is supposed to take care of the pending bills. Many counties in this country have huge pending bills. The effect of the huge pending bills in the economy of our counties and this country is so severe that the country right now is cash strapped. There is no money in circulation. People are crying. They are suffering. I use this opportunity to tell the Cabinet Secretary for the National Treasury that immediately the Senate passes this schedule, they should take the shortest time possible to send money to our counties. They should send this money so that the effect to the economy can be easily stimulated by the payment of certain pending bills in our counties. As we sit and grapple about the effect of under-collection of revenue in the country, one of the reasons that contribute to under-collection of revenue is the late payment of bills. When the Government does not pay bills, it means that the Kenya Revenue Authority (KRA) cannot collect money because Value Added Tax (VAT) is not being paid. So, we get into a vicious cycle. When services are not being offered, the Government being the greatest employer and consumer of goods and services, and when nothing is happening, the economy remains stagnant. I hope the programmes proposed in the counties have some stimulating effect and the probability of changing lives of the people in our respective counties. How I wish if, for example, those counties that have no water or want to put some money in agriculture considered water provision or something like drought resistant crops, so that even as 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.

(Sen. (Prof.) Kindiki): Order, Sen. Linturi. Did you say the Senate is a House of tribes?

I said and you need to listen to me properly the context in which I said the Senate is a House of tribes.

(Sen. (Prof.) Kindiki): Order Senator! Did you say that the Senate is a House of tribes?

I said the Senate is a House of tribes. I said it in this context. This Senate votes by delegations. There are 47 delegations in this House. Kenya has around 43 tribes. Out of that, all the tribes in this country are represented in this House. It is in this context that I am saying that as we try to think loudly, as the representatives of the great nation of Kenya, we should think on how to make Kenya a more cohesive society by ensuing that we support devolution because devolution was made to devolve power and resources to the ground.

(Sen. (Prof.) Kindiki): So, your analogy is basically a mathematical issue; that there are 47 or thereabout communities and 47 delegations.

Mr. Deputy Speaker, Sir,

hat is exactly what I am saying. If a decision is taken by 43 Senators who represent all these people, then the Kenyan people have spoken when the Senate speaks.

(Sen. (Prof.) Kindiki): Well, proceed but be careful not to send the wrong impression out there about what the House is. If the analysis ends there, that is fine but you can venture into a dangerous analogy where you dilute the image of the House.

Mr. Deputy Speaker, Sir, that was not the intention and probably it is misconstrued.

(Sen. (Prof.) Kindiki): This is especially considering that you are historically associated with other terms about this House in the past which as I have told you before, you have to live with. Those who forget history have the risk of repeating it.

Mr. Deputy Speaker, Sir, I stand guided.

(Sen. (Prof.) Kindiki): Very well. Thank you.

Mr. Deputy Speaker, Sir, it is better so that we are not mistaken. I would want to say that the analogy was purely on the basis of numbers and not anything else. Because of the seriousness of the Motion before this House and the effect that 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.

(Sen. (Prof.) Kindiki): Very well. Mover to reply.

Thank you, Mr. Deputy Speaker, Sir. I thank the Members for the contribution that they made to this Motion. It is true that it is a very important Motion approving the cash disbursement schedule to counties, which will enable the national Treasury to disburse funds to counties promptly and on time. As Members have said, we are concerned that funds do not go to counties regularly, especially in the last Financial Year. In the last few years, money has been released a few months to the end of the financial rear. For example, in the last financial year, or about five months ago, money was released in June and it will not help counties to plan. It is important that the Schedule that has been done today be implemented according to the law. The small correction that we made is, in fact, only a percentage error and not a serious mathematical error. So, when we submit the Schedule back to the national Treasury, that should be corrected accordingly. It is important that the Schedule is passed. In the atmosphere today, there is a lot of discussion about reduction of money in terms of what is happening with the Value Added Tax (VAT) and other things. We hear rumours – I do not want to anticipate debate – that there will be deductions also to counties. Members, be aware that anything which requires deduction of funds to counties must start from the Division of Revenue Bill, and that must be put in the County Allocation of Revenue Act (CARA). So, we do not expect anything short of that. Beware that there is a discussion that about Kshs9 to Kshs10 billion will be deducted from this. Mr. Deputy Speaker, Sir, issues of conditional grants to counties have been mentioned. Whereas we know that shareable revenue is the money that goes straight to counties, however, there are many grants and loans from donors which are domiciled in many Ministries. I challenge the Senate to take the role of oversight seriously to know where this money goes when it leaves the Ministries and what it is supposed to do. I think this is for every Committee starting from devolution to health. For example, what does the money for the Kenya Devolution Support Programme (KDSP) do? I think we need to know as the Senate. For health, there are funds from the World Bank, the Danish International Development Agency (DANIDA) and other donors. How is it being done? I think it is important that we take our oversight role seriously, know which Ministries this money is domiciled and oversight. We should also go to counties and see what those monies are used for especially on the leased equipment which Kshs9.4 billion is being paid for every year. First of all, 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): Very well. I determine that this matter concerns counties. Accordingly, it is a matter that requires Division through delegations. Looking at the numbers, we cannot proceed today. Therefore, I direct that the whips from both sides, supported by the respective leaders of the parliamentary parties represented in the House, must do everything possible to facilitate the division and eventual passage of this and other pending urgent matters before this House which are scheduled for division. I expect, therefore, that the whips will do extraordinary work to make sure that by all means this matter is out of our hands tomorrow, especially, considering the whole of next week, other important issues might arise in the context of our sitting outside Nairobi. It will be very good news if the Senate sitting outside Nairobi delivers the message to the grassroots that the disbursement schedule for this year has already been passed. It is so ordered. I expect cooperation between the whips of both sides and the leaders. The Mover of this Motion should also cooperate with the whips so that it is a joint effort. You are jointly and severally liable to this House to deliver results. Thank you. We have, as you can see from the Order Paper today, a number of items appearing on the Order Paper which I would like to reorder, pursuant to Standing Order No.40 of the Standing Orders of the Senate; namely, the items appearing in today’s Order Paper at Order Nos.9,10,11 and 12. Those items are hereby deferred in accordance with Standing Order No.40

(Sen. (Prof.) Kindiki): Next Order!

Mr. Speaker, Sir, I beg to move: THAT, this House adopts the Report of the Sessional Committee on County Public Accounts and Investments on the inquiry into the Financial Operations of Nakuru County Executive for the Financial Year 2013/2014 laid on the table of the House on Tuesday, 19th June 2018. I move this motion very well aware that this House has registered its concern at the throughput and the timeliness of the reports that the Public Accounts and Investments Committee brings to this house. Mr. Speaker, we have had a legacy problem, a huge backlog problem that has been occasioned by many reasons. As we know, that the First Senate was not able to get down to business on consideration of these issues mainly because of court battles that pitted the Senate and the county governors. Thankfully, these issues have now been resolved, and I am very happy to report that one of the counties and one of the governors that went to court to oppose the role of the Senate in the scrutiny of the reports of the Auditor General; the Governor for Kakamega, has since appeared before the County Public Accounts and Investments Committee and he has expressed his pleasure that when he came before the Senate, he found it to be a House full of wisdom and a House that helped him to understand certain things that he was not able to see from the county where he was sitting. Mr. Speaker, I want to assure this House that the County Public Accounts and Investments Committee is committed to taking a more efficient approach to its work, consideration of reports and reporting to this House. I want it to go on record that the Committee on Public Accounts and Investment for the 40 counties that are remaining, because this House has already adopted three reports and today, we wish that we can move four other reports, we do not expect to bring 40 Motions before this House. We have already started work in consolidating the reports of the 40 counties and we hope that when that is ready, we will bring it to the House. If you look at the practice, even in the National Assembly, the Public Accounts Committee does not submit an individual report for Ministries and the Public Investments 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. Olekina.

Thank you, Madam Temporary Speaker. I rise to second the Motion that this House adopts the Report of the Senate Sessional Committee on County Public Accounts and Investment on the inquiry into the financial operations of Nakuru County Executive for the Financial Year 2013/2014 which runs from 1st July 2013 to the 30th June 2014. Madam Temporary Speaker, from the outset, this Committee is really doing a very good job in trying to expedite the adoption of these reports. When we looked at our legacy report, the previous House had not done a lot of work. From the amount of time we put into these reports, I concur with my good brother and Chairperson of this Committee, Sen. M. Kajwang’, that for any subsequent report that we submit, particularly for the Financial Year 2013/2014, we will not be wasting our time in submitting individual reports. This is because if we continue with that trend, by the time we are out of this House in five years’ time, we will not have had an opportunity to even consider the reports of the Auditor General for the time we, as Senators, are serving in this House. Madam Temporary Speaker, a few things were noted during the inquiry into this matter. First, the amount of liability that the new county governments inherited from defunct councils was quite vast, most of which had not been verified. I know that the Transition Authority (TA) has really tried to do its work, but we noted that it was abolished at the time they were just trying to pull up their socks to expedite the work. When we look at the issue of assets and liabilities, it cuts across all counties. It is extremely difficult for even the County of Narok, for instance, to know how many assets and liabilities there are. This was the same in Nakuru County. However, I am happy that this is the process that is ongoing and the Intergovernmental Relations Technical Committee (IGRTC) has engaged the county governments and county assemblies in ensuring that they expedite the process of verifying these assets and liabilities. Madam Temporary Speaker, one of the things that we noted in terms of the Auditor General’s report was that there were issues that ought to be dealt with by the county assemblies. We discussed and deliberated heavily on the kind of audits that this House should be looking at. We should not be looking at issues of reconciliation because it is something that takes a lot of time. Although it is provided for in the Public Finance Management (PFM) Act; that all county governments and assemblies have to carry out their monthly reconciliation and send the report to the Auditor General, 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.

Let us have Sen. Sakaja.

Thank you very much, Madam Temporary Speaker. I thank the Committee that is ably led by my good friend, Sen. M. Kajwang’, who went to a very good school, for the work they have been putting in. We have complained severally on the Floor of this House about the backlog of these reports. Our primary role is oversight and we needed to get the understanding of what is happening in your Committee. We have made several suggestions. I sympathise with the Senator for Nakuru County right now, because this is the Audit Report of the Executive of Nakuru County for the Financial Year 2013/2014. She is, therefore, oversighting the previous governor, Gov. Mbugua, yet the people of Nakuru know that they have sent her to the Senate to oversight the county governments and the current governor, Gov. Lee Kinyanjui. Madam Temporary Speaker, I would not be interested much, apart from looking at the systems issues and procedural challenges in the Report for Nairobi City County. This is because the people of Nairobi County want me to do oversight, which is my role, on the current county government. We have even suggested in this House that to help the Committee – and many Members are committed to that - that all the 67 Senators should split ourselves for a period and take up some of these reports, so that we do it together, under the guidance--- We can reduce this backlog if the County Public Accounts and Investments Committee, led by Sen. M. Kajwang’, could give one Member to lead each of the other nine Committees. There are Senators in this House who might never have an opportunity to actually go through the report of the current governors. I know the Committee is hesitant or might not want that to be done. However, it is because when the Committee sits, it does so on behalf of the rest of us. Actually, the Committee sits to make the work of the rest of the House easier. In this respect, it might be the other way round. I ask the Committee to be open. I am glad that they are now proposing to bring consolidated reports and that makes a lot of sense. It is not necessary for every county to have its report. A consolidated report would be good, regionally or whichever way. Moreover, the Committee needs to understand that the way they look at the reports of the Auditor-General cannot be the same thing the county assemblies look for in the Auditor-General’s reports. If that is the case, then we are duplicating roles and might be wasting our time. We should know what secondary oversight requires of us such that the issues that are looked at as a Senate County Public Accounts and Investements Committee (CPAIC) must be different and at a higher level than what we expect from the County Assembly Public Accounts Committee on the same issue. Madam Temporary Speaker, Senators have spoken about the challenge that many of these counties faced when they began at that time. Many counties are facing similar challenges. I have previously asked - and maybe it is because the Committee might be overwhelmed - I made a request for a Statement last year and asked for an audit of revenue collection of the Nairobi City County. That audit was not done because we were not able to communicate with the Auditor-General. 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 rise to support this Motion and congratulate the Committee on County Public Accounts and Investment (CPAIC) on the work that they have been doing. However, there is an issue that other Senators have spoken on regarding the timeliness of this Report and I do hope that in the future, we can get the reports on time in order for us to deal with the issues that arise. We are now talking about 2013/2014 and the citizens have probably forgotten what this was about and as we discuss this, we are sort of missing out on what is going on in 2017/2018 and so forth. I would also like to add my voice that it might be good to maybe have the House meet at some point with all the Members in the Committee on CPAIC and, led by the very able Chairperson, Sen. M. Kajwang’, to sort of figure out a way forward as to whether we are going to have many ad hoc Committees that can deal with these reports so as to get to the current year without having to wait for so long to perform our oversight role. Madam Temporary Speaker, looking at the Report on Nakuru County Executive for the Financial Year 2013/2014, the sad thing is that a lot of the issues raised in this Report are still going on at this point. As much as we would have thought that a lot of them were teething issues or they were happening due to the fact that the counties were still being set up, we are probably dealing with a lot of those issues five years later. One of them is under-performance on revenue collection. That seems to be an issue in all the counties. We have to find a way to get revenue collection audited in all the counties, especially Nakuru County, where we have had the amount going down over time, which should not happen. We should be getting more than what we had the previous year and the year before. This has not been the case. Madam Temporary Speaker, when you have revenue collection that is going down and inflated budgets that are based on revenue collection that is not going to materialise, then you have a lot of projects that cannot be completed at the end of the financial year because the money is not there. I am also extremely concerned by the delayed payments of pending contracts. Contractors in the county are complaining that many of them are being auctioned. The bank loans are yielding interest year after year. The counties get money to make these payments yet we continue to have extremely high bills. This needs to be looked into critically and that is why CPAIC should give us these reports in real time for us to keep up with what is going on so as to oversight real time. Madam Temporary Speaker, the bloated workforce, which is a big issue in Nakuru County and seems to be the case in a lot of other counties in the country, is more of a mismanagement issue than anything. You have a County like Nakuru where you hear 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 rise to give my very hearty congratulation to the Committee that has prepared this Report. I also want to join hands with my colleagues in urging that we expedite finalisation of audit reports that have been pending for the financial year 2013/2014. 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.

I did not get you right. Did you say the Senators or the governors?

I am sorry I was referring to the governors, Madam Temporary Speaker.

There are a lot of expectations from the people that we represent; in terms of how we monitor and put our governors and the executives in our counties to account. So, unless we go by the model being suggested by my able Senators who have spoken; both Senators Sakaja and Kihika; we will reduce this into something that is like a SACCO, whereby the auditor will prepare reports, they are presented before the House, we summon governors, they give some answers, we table the report and life continues. I will give you an example. If you look at the audit queries from my county of Nyamira for the Financial Year 2013/2014, the county government set aside Kshs23 million to put up five boreholes in different regions within the county. The audit query by the Attorney-General points out to a case where this work was not done, where the people are not getting water from those boreholes and there is no value for money. If you look at the period that has lapsed, money was spent in Financial Year 2013/2014, and we are in 2018 and those queries have never been answered. How do we build confidence in the people that we represent that the money that we send to counties will be put into good use? We need to be innovative, we need to involve the citizens and push for social accountability where the people themselves can have a scorecard. Article 174 of the Constitution is very clear that self-governance is with the people themselves so as we budget for a project, we move with the people and as we want to finalise the project before we release the payments, the people must be told that this was what was budgeted for, this contract was issued to company X, we have now finished and here are the results. But we cannot just pay people, simply because money has been sent to counties. That goes against the Constitution, the Public Finance Management Act, and the expectations of the people. It is immoral and it is something that the Senate should not support. We will never achieve that dream of extending accountability to the citizens unless we get our oversight fund and most of us come from vast counties. If you were to traverse every ward of your county, you need resources, you need to organize the people, 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.

Yes, Sen. (Dr.) Getrude Musuruve

Madam Temporary Speaker, allow me to thank you for giving me this opportunity to add my voice to this Motion. This Motion is quite relevant in this country, especially given the fact that we are in the era of devolution. It is also relevant to the Senators and it affects us directly. We are here to represent the counties and the interests of their governments. I want to commend Sen. M. Kajwang’ for the report that he has done which is valid. I want to say that for service delivery, transparency and accountability, oversight of county public accounts and investments is very important. I want to say that investments in a county are an indicator of development. If you go to a county and find out there a lot of investments, you know very well in that county, the youth are going to be employed and employment is a core issue in this country. There are youths who are unemployed. So, in a situation where a county caters for its youths and provides employment with regard to investments that will create employment; that is something that can be very good for counties. Even as you talk about public accounts and investments, there is need for public participation. We are serving the people of this country and they have a stake in what happens in the counties with regard to the investments and development that takes place in these counties. Sometimes mwananchi can be in the dark about what is happening in the counties, and yet they are entitled to know. So, there is need to build capacity for people to really know exactly what they need to ask and what their right is. There is also need for an audit to know what exactly is happening in the counties so that we get to know which county is doing what in terms of development. When we talk of development, we are looking at issues like hospitals, and finding out if we have the infrastructure, drugs and facilities that are needed. When it comes to schools, then we will be asking whether there are enough schools for the children in that particular county. If schools are not enough for children in that county the children will be left behind---

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.

Order, hon. Senators! I would like to draw the attention of Senators that the matter that we are discussing is of utmost importance and if you need to consult, kindly, consult in a manner that does not interfere with our debate.

Thank you, Madam Temporary Speaker. I can see very well that you are really getting the---

Sen. Olekina, please, it is not good to obstruct any Member who is on the Floor. Kindly, observe that.

Madam Temporary Speaker, I would want to really thank you. This Motion is very pertinent especially with regard to people of this country because this is a core mandate. When you look at Article 96 of the Constitution, it states clearly that we represent the counties and the interest of their governments. It is a Motion that we must be really keen about because we want devolution to work for the people of this country. There is every need for Senators to oversight what is happening in the counties but it reaches a time you wonder how to oversight. Let me give an example of the nominated Senators and even all of us; we do not have a kitty to oversight what is happening in the counties. You really want to ensure that the common man gets services but you do not have even money to take you there. Even oversight requires money. That is why it is necessary and important that Senators should be given a kitty and especially nominated Senators so that they can do their oversight role as they are constitutionally mandated. We have been employed to serve with commitment, but we cannot be committed without money. We need oversight money so that we can go out to the counties to observe what is happening. Are counties being inclusive regarding Persons with Disabilities (PwDs)? What is happening in the schools, hospitals and so on, and so forth? Madam Temporary Speaker, I strongly support this Motion. I thank Sen. Kajwang’ for coming up with a candid report which will help us to know what exactly is happening in the counties. This report will help us to move with speed with regards to oversighting what is happening in the counties. It will also help us to ensure that we oversight the county public accounts so that people get value for money. Thank you very much,Madam Temporary Speaker, for giving me this opportunity.

Thank you very much, Madam Temporary Speaker, for giving me this opportunity to support this report. I start by congratulating the Committee that worked on it and brought it to the Floor of the House. 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 adoption of the CPAIC report of the Senate on the Auditor General’s Report for Nakuru County for the FY 2013/2014. This is an old report and the Committee which handled it was the Committee for the first Senate. That is how far we are from doing a proper audit of what is happening. Things took place a long time ago, yet we are commenting on them now. That is serious, because we are not providing effective oversight if we are handling reports four or five years down the line. Madam Temporary Speaker, the Senate is supposed to oversight funds allocated from the national revenue to the counties under Article 96(3). Those are not the only sources of revenues that the counties have; they also generate their own funds. I hope that county assemblies are doing a proper oversight for those funds, because they are supposed to do oversight on those funds. We are relying on the Auditor-General’s report, which is just a paper audit because he also does not go to the field to establish whether the projects that the county says it has done and expended monies on are actually on the ground. Therefore, what we are looking at is just a paper audit. As Senators, we are supposed to do more than that. We represent particular counties in terms of delegations. We should have the capacity to oversight on the ground and make sure that there was public participation when those projects were developed in the first place. I do not think the Auditor-General does that. We also have to make sure that budgeting is also done well. This is because what the people proposed was not actually captured in the Auditor-General’s report. As the Senate, we have been struggling, for the last five years or so, to make sure that we have funds to oversight these counties. With those funds, we can have real time audits and establish whether what the county is budgeting is what was actually prioritized by the public. Coming to the Auditor-General’s report, the Auditor-General is supposed, by law, to submit the audited accounts for a financial year six months after the lapse of the said financial year. However, this report came one year after the lapse of the financial year. The financial year ended in June, 2014; but this report came to the Senate in June, 2015. That is already six months out of the deadline. When you look at the issues that the Auditor-General raises, they are mostly not the real problems on the ground. They will do audits but pick issues which can easily be substantiated by the county or whatever office they are auditing. By doing that – and I am sure this is what the CPAIC is going through – you will get reports, but by the time you are interrogating them, the auditor will say that the issue has been sorted out. You will then end up with nothing to interrogate, even at that level. Madam Temporary Speaker, I attended one such Committee meeting where my Governor was submitting his reports, and on most of the issues, the auditor said that they had been sorted out and settled. Therefore, there was nothing to respond to. Given that that is how the Auditor-General’s office works, we, as Senators need to push to 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.

Hon. Senators, I see no further request. I, therefore, ask the Mover to reply.

Thank you, Madam Temporary Speaker. I wish to thank the Senators who have spoken to this Motion and tendered their unconditional support to it. We have taken note and received very useful feedback from all the Senators, especially from the Senator for Nakuru, whose county we are discussing today. Madam Speaker, this could be the fourth such debate since this House was re- established by our Constitution.When I spoke earlier, I indicated that in the first Senate – post 2010 – we were never able to discuss any Motion or adopt any of the reports from the counties. Despite the delays, we are all familiar with the saying,“the wheels of justice turn slowly, but grind exceedingly fine.” It is better late than never. In Nairobi, we have seen persons who used to work for the defunct authorities being convicted just this year or last year. Therefore, we will not be fair to the people in the counties if we leave a year without analysis. We acknowledge that the approach to analysis must change. Madam Temporary Speaker, for the record, it is important that we, as a Committee, point out a few things on the basis of the submissions from the hon. Members. First, oversight is a collective role of all Senators and all the Committees of the House. In fact, the CPAIC has been given that specific role to look at the Auditor- General’s reports. However, the oversight function – like what the Committee on Health did today by going to Pumwani Maternity Hospital –is part of proactive oversight. In fact, the Committees of this House have a better chance and facilitation to carry out proactive oversight than the CPAIC, which relies on a report sent to this House by the Auditor-General one year after events have happened. Therefore, I want to urge all hon. Members, through their Committees, to collectively and individually ensure that we do not leave the oversight job to one Committee of the House. Secondly, Madam Temporary Speaker, some clarity has been sought on what county assemblies and the Senate ought to do. We believe that county assemblies should 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, this being a matter that affects counties, we will definitely not proceed to vote because it requires voting by delegations. I, therefore, allow the application by the Senator that we defer the putting of the question to another date. I rule that this matter be placed on the Order Paper tomorrow.

Next Order. ADOPTION OF CPAIC REPORT ON FINANCIAL OPERATIONS OF KILIFI COUNTY EXECUTIVE FOR FY 2013/2014

Madam Temporary Speaker, I beg to move:- THAT, this House adopts the Report of the Sessional Committee on the County Public Accounts and Investments on the inquiry into the Financial Operations of Kilifi County Executive for the Financial Year 2013/2014 (1st July 2013 - 30th June, 2014) laid on the Table of the House on Tuesday, 19th June, 2018. Madam Temporary Speaker, a lot has been said in the earlier Motion on how timely these reports ought to be, and the approach we need to take to make sure that we are more of physicians than morticians. I will not repeat what has already gone on record. Kilifi County appeared before the CPAIC on 11th August, 2016, on 16th August, 2016, and on 17th August, 2016 to go through the Report of the Auditor-General on the financial operations of the Executive for FY 2013/2014. With the approach where a county appears before the Committee three times and we have 47 counties, it means it will take several years for this Senate to exhaust all the counties. These are just appearances before the Committee. You have to go to report writing, adoption of the report, table the Motion and then debate it. This means that one county could take collectively about 14 days for it to be processed. That is why the concerns of Members are extremely valid and we must find a better way of doing this. Nonetheless, the Committee looked at some of the issues that were raised by the Auditor-General. Madam Temporary Speaker, Kilifi County had significant issues of procurement that had been flagged by the Auditor-General. First, the Governor of Kilifi County used Kshs140 million to buy a residential house; I am told it is called the “Kilifi State House.”The Auditor-General indicated that the procurement plan did not have a provision for purchase of the house. Whether there was a procurement plan or not, what caught 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, Madam Temporary Speaker. I rise to second this Motion. From the onset, I wish to state that although I am a Member of the CPAIC and I am seconding this Report, I am disappointed.I have looked at the Report and I have seen that the people of Kilifi County lost millions of shillings. In fact, oncethis Report isadopted, the Ethics and Anti-Corruption Commission (EACC) should be looking at possible loss of finances from Kilifi County. Madam Temporary Speaker, looking at this Report, it was done by very able and distinguished Senators. We now have only one of them – Sen. Wamatangi –in our Committee. This is the problem we have when, as a Committee, we have to own up to a Report which was done but not adopted by the last House. When you look at the men and women who sat in that Committee, they are people I consider are of integrity. However, when you look at the final recommendations they came up with, I wonder why they should not have just recommended that the Governor of Kilifi County be prosecuted for misuse of public funds. How do you spend Kshs180 million for building your residence? How do you spend Kshs50 million for fixing your office? How do you spend Kshs30 million for legal fees, yet you are supposed to have a County Attorney? Madam Temporary Speaker, when you look at the observations of the Committee that did this work, they found out that most of the transactions which were being carried out in Kilifi were on restricted tendering. Kilifi is a very small county, if I may say. When they are supposed to benefit from the money which we send from this House, a huge chunk of it goes towards making the life of a few people look like demagogues.This is sad; I hope that the Secretariat will follow up certain recommendations. Madam Temporary Speaker, one of the recommendations was the amendment of Section 154(2)b of The Public Finance Management Act. That Committee sat,deliberated, interviewed and interrogated the governor. The staff should have ensured that they brought those amendments to this House. It is only good on paper. Madam Temporary Speaker, I am an extremist for truth and justice. It is very sad and I hate the fact that when someone has been tasked with a fiduciary responsibility by the people of that county, they end up using that position to make their life better, leaving the people they are supposed to serve suffering. This is a total disregard of the rule of law and the Public Procurement and Disposal Act. This is why I insist that this Senate should now be moving towards ensuring that the Auditor-General looks at the Public Audit Act. Section 62 of the Act is very clear that we cannot be looking at Auditor-General’s Report where he says that he was not provided with certain documents. 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, for giving me the opportunity to speak on this Report. I must confess that I have not refreshed my memory on this Report. I have just walked in and nobody wants to speak. Today, I am faced with dual representation---

Did you say that nobody wanted to speak?

No, Madam Temporary Speaker; I did not say that. I said that I have just walked in---

I have a list of people who want to speak.

Madam Temporary Speaker, I know it is a very long list. I was being challenged by a dual team of people from Maasai land. There is a very serious one sitting in the Chair and another one challenged me as I walked in. I, therefore, felt a bit intimidated to speak on this. Madam Temporary Speaker, let me just touch on the general issue, which comes at the very end. When I was in this Committee, we noticed that the revenue collection targets that counties had set for themselves were not being met. The fact that they had an opportunity to set those targets meant that maybe with proper collection, they could have achieved those targets. However, there were basically two main reasons why they were not achieved; and one of them is lack of experience. Some counties were over ambitious on how much they could collect. They were not realistic and this being the first time, we sort of said “Okay, be realistic next time.” Madam Temporary Speaker, the second reason is that some counties were not collecting enough; not because they had been over-ambitious in their targets, but to me, it was because of the fact that not everything that was being collected was being accounted for. One cannot explain why a county government should collect less than what used to be collected by the totality of the local authorities when they were in existence. We know that those local authorities never accounted for most of the money. They had very poor collection because the systems were not working and there was a lot of corruption. The collection was manual,with double receipting and so on, and so forth. However, in spite of that, they collected something. Therefore, when a county government now comes with all the personnel – they have employed the right people to do this – and proper targets but then collect less than what those local authorities used to collect, then there is something serious and more fundamental in that issue. Most likely, it is corruption. Madam Temporary Speaker, I am aware of one or two counties closer home where rumour has it that whatever is collected at the border, only a third is put into the system and two-thirds goes into pockets of people. That is why I believe that the Committee made a recommendation to the very last paragraph that:- 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, I now reduce the time to 10 minutes for each Member so that we can deal with all the Motions today.

Thank you, Madam Temporary Speaker. I support the Motion that the Senate adopts the report of the Sessional Committee on County Public Accounts and Investments Committee on the Public Investment on the inquiry into financial operations of Kilifi County Executive for the Financial Year 2013/2014. 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.

Proceed, Sen. Sakaja.

Madam Temporary Speaker, Standing Order 220 creates the County Public Accounts and Investments Committee (CPAIC). With regard to the functions of this Committee, Standing Order No. 220 says:- “The functions of the County Public Accounts and Investments Committee shall be- (a) pursuant to Article 96(3) of the Constitution, to exercise oversight over national revenue allocated to the county Governments; (b) pursuant to Article 229(7) and (8) to examine the reports of the Auditor- General on the annual accounts of the county governments; (c) to examine special reports, if any of the Auditor-General on the county governments funds; (d) to examine special reports, if any, of the Auditor-General on county public investments; and, (e) to exercise oversight over county public accounts and investments.” Madam Temporary Speaker, this Report on Kilifi County is a classic example of the problem that we have, as I said earlier when we were speaking about the Report on Nakuru County. It seems that we are caught up in a mechanical process of accounting. We get the report of the Auditor-General and see where the gaps were; the governor then comes and explains that there were some receipts or documents which were not seen. The Committee confirms it and the observation 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.

Ho. Senators, I see no further requests. I will ask Sen. M. Kajwang’ to reply. However, before I do that, I want him to look at Standing Order 79 and 61 as read together. Standing Order 79(1) and (2) reads that:- “When the Senate is to vote on any matter other than a Bill, the Speaker shall rule on whether the matter affects or does not affect counties.The Speaker’s ruling under paragraph (1) shall be made after the conclusion of the debate on the matter but before the question is put.” As read with Standing Order No. 61(1)(2) and (3) under ‘Manner of debating Motions- “(1) When a Motion has been moved and, if necessary, seconded, the Speaker shall propose the question thereon in the same terms as the Motion and debate may then take place upon that question. (2) At the conclusion of the debate, the Speaker shall put the question. (3) Despite paragraph (2), the Speaker may, on the request of a Senator defer the putting g of the question to a later date in which case the Speaker shall thereupon nominate a date and time at which the question shall be put.” Therefore, you will only be able to ask for deferment after the conclusion of the debate. You did ask for deferment on the other one before.

Thank you, Madam Temporary Speaker. I am well guided on the provision of the Standing Orders.I wish to make very brief comments as we close the debate on the Report of the CPAIC on the accounts of Kilifi County. The Committee that looked into the Auditor-General’s Report on Kilifi County did a lot of hard work. As I mentioned when I was moving this Motion, this Committee had three meetings on 11th, 16th and 17th August, 2016, with the County Executive of 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, I now proceed to rule that pursuant to Standing Order 79(1) and (2), this matter affects counties and, therefore, we will call for a vote by county delegations. Sen. M. Kajwang’, you may move.

Madam Temporary Speaker, pursuant to Standing Order 61(3), I rise to request that the Speaker defers the putting of the question on the Motion to a later date.

This matter is therefore, deferred to tomorrow for further action.

Next Order. ADOPTION OF CPAIC REPORT ON FINANCIAL OPERATIONS OF HOMA BAY COUNTY EXECUTIVE FOR FY 2013/2014

Madam Temporary Speaker I beg to move– THAT, this House adopts the Report of the Sessional Committee on the County Public Accounts and Investments on the inquiry into the Financial operations of Homa Bay County Executive for the Financial Year 2013/2014 (1st July 2013 - 30th June, 2014) laid on the Table of the House on Tuesday, 19th June, 2018. Madam Temporary Speaker, quite interestingly, in the last Parliament, I seconded a Motion on a similar report; the Motion having been moved by Sen. (Prof.) Peter Anyang’-Nyong’o, who was then the chair of CPAIC. When I rose to second this Motion, there was a power blackout and the Business of the Senate was disrupted. I have never seen that before, and for the three or so years that I have been here, that has never recurred. I do not want to imagine that the doctors and the witches of Homa Bay could have intervened to prevent me from proceeding, but I am glad that I have 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.

Thank you, Madam Temporary Speaker, for giving me an opportunity to second this Motion. From the outset, I am still baffled. I want to be clear that even though I am a Member of the Committee and, by default, I should own this Report, I think some of the audit queries would have been dealt with in a different way. As I said earlier, I have always aspired to be an extremist when it comes to freedom, liberty and fighting for fiduciary responsibility. I have gone through the Report and I hope that this House will adopt recommendation of the committee that sat then – which I discussed in detail with Sen. Wako – and implement them to the fullest. I hope that the Senator for Homa Bay, who is the Chair of the Committee, but in his capacity as the Senator for Homa Bay, will ensure that these recommendations are implemented. Madam Temporary Speaker, the fact that we do not have an implementation committee should not limit our ability to follow through and ensure that recommendations of this House are implemented. Where there are instances of unlawful expenditures, the Committee recommended that those officers should be surcharged and the money recovered. That does not require an implementation committee. Even the EACC and the Director of Public Prosecutions (DPP) should follow through; they should get this Report and ensure that those funds are recovered. As an extremist for freedom and liberty, money is being misused without proper accountability. Madam Temporary Speaker, I have looked at this Report. One of the things that I hope it is now the right time to do is on the instances where procurement rules were not followed, but where goods and services were supplied as per the details of the requisition. This Report recommends that officers be reprimanded for not following the public procurement rules and regulations and a report be submitted to the Senate on administrative action and austerity measures taken to mitigate against committal of similar offences in the subsequent financial years. Given that this is an audit report for FY 2013/2014, this House should have been given a report on the actions takenin the FY 2014/2015. Madam Temporary Speaker, it is a shame that we are the ones to table this Report. I noticed that it was signed by none other than Dr. Boni Khalwale, who was then the Chair of the Committee way back in 2015. I think there was nothing that stopped that Committee – even though the report had not been Tabled – to ensure that they follow through and even work together with the CPAIC in the county assemblies. I am still at a loss of words. Now that we are looking at the Financial Year 2013/2014, what happens to the subsequent years where similar recommendations are made? It is clear. We know that in the County Assembly of Homa Bay, there are certain officers who were arrested by the EACC. Maybe the EACC should have extended their arm and also looked at the Executive arm of the County Government of Homa Bay, because if this was happening in one office, there is no reason why it was not happening with the others. 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, for giving me this opportunity to speak on this Report. This Report covers the financial year 2013/2014; from 1st July, 2013, to 30th June, 2014. If my memory is correct, this is one of the first annual reports that this Senate is considering. When the elections were held in 2013, the other reports that we considered were for only six months. Therefore, this report is for a full year of 12 months. Whereas the reports for the six months were a bit lenient because county governments were just settling in and some of them did not know the procedures and so on, and so forth, no such excuse can now be given when considering the Report of 2013/2014. This is because it is assumed they have settled in, they know the regulations and they will now do what they are expected to do under the Constitution, our laws, and regulations. Madam Temporary Speaker, this Report underlines some of the problems that we have in most of the counties. It underlines the fact that the county governments, in most cases, used restricted tendering almost as a normal thing. There lies an avenue where corruption comes in. We are aware that restricted tendering goes to the politically correct individuals who have formed companies for that particular tender, hence the popular word ‘tenderpreneurs,’ which comes from the word tender. Those people are given leeway where there is free use of restricted tendering. Restricted tendering is only supposed to be used in specific circumstances, and not as a norm the way Homa Bay County Government did. Nevertheless, the Committee felt that in future, the Homa Bay County Government should not do so. Madam Temporary Speaker, apart from that one problem, the other one was the issue, not just of tendering, but of not following the correct procedures. For example, the Committee interrogated the issue of street lighting. The Committee bent over backwards. We just called for evidence on that matter rather than waiting for other things, and came up with various conclusions. I want to address these conclusions in a very general way. Most of the recommendations, as you can see, were calling upon the various public bodies to do a specified act by 31st December, 2015. In other words, the Committee was telling the county governments to rectify and come up with a report on a particular issue by 31st December, 2015. We did that on almost all audit queries. On some of the recommendations, particularly those that relate to the registration of assets and liabilities of counties, it is the Transition Authority (TA) which was instructed to have that done by 31st December 2015. Madam Temporary Speaker, an issue normally arises because in normal procedures, of course, there are also some recommendations of penalizing the public officers concerned and, in fact, requiring payment of some amount. If you look at page 22 of the Report, this is a matter which relates to the irregular hire of motor vehicles. The Committee recommends that the amount of Kshs2,080,000 should be recovered from the responsible accounting officer and a recovery report submitted to the Senate by 31st December 2015. Elsewhere you will find that they are recommending that the officers 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.

Definitely, that is good guidance. Chairman of CPAIC, you might probably consider giving a side report as to what has been achieved, looking back over the years, because we are dealing with past reports. It would be good for the Committee to consider whether some of these things have been achieved and, maybe, a side report or administrative note could guide us. Hon. Senators, seeing that there is no other request, I now call upon the mover to reply.

Thank you Madam Temporary Speaker. I also tender my appreciation to the seconder and Sen. Wako, who has given us some very good guidance owing to his background. Madam Temporary Speaker, we scrapped the Implementation Committee but when we recently sat with the Public Accounts Committees from all over the Commonwealth Countries with Sen. Olekina, we realised that it is possible to have an implementation sub-committee within the Committee. That is one direction we will 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, pursuant to Standing Order 79(1) and (2), I determine that this is a matter that affects counties and, therefore, requires a vote by delegations. This cannot, therefore, be done at the moment. Proceed, Sen. Kajwang’.

Madam Temporary Speaker, pursuant to Standing order 61(3), I rise to request that you defer the putting of the question on the Motion to a later date.

Hon. Senators I defer this matter to tomorrow’s Order Paper.

Next Order.

Proceed, Sen. M. Kajwang’

Madam Temporary Speaker, I beg to move:- THAT, this this house adopts the Report of the Sessional Committee on County Public Accounts and Investments on the inquiry into the Financial operations of Kisii County Executive For the Financial Year 2013/2014(1st July, 2013-30th June, 2014) laid on the Table of the House on Tuesday, 19th June 2018. 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, for the opportunity. to second this Motion.From the outset, one of the things that I would like to note and which I should have noted for the other reports that I have seconded, is that at this particular time, financial responsibility was all under the executive because the county assemblies were not semi-autonomous as they are now. That semi-autonomy was given to them on 1stJuly, 2015. Madam Temporary Speaker, the same issues that we observed on the reports of the other counties – which Senator Amos Wako has said were occasioned by lack of capacity – are the same issues that we are noticing in the observations and recommendations that the Committee came up with. One of the most disturbing issues is that of imprest. I am not so sure whether this imprest was ever recovered. The challenge we have is where we now recommend that this has to be recovered. One of the General Recommendations by the Committee then was that the imprest which had been given to the MCAs should be recovered. However, we are not aware of the status. It is only from 2014 by the time this Audit was done and by the time the Committee sat and interrogated the county assembly and also the Governor on whether there was any evidence to show that that Imprest had been surrendered. Madam Temporary Speaker, I agree with Sen. Kajwang’ that now, a sub- committee will have to follow up and ensure that these recommendations are fully implemented. It is imperative for the people of Kisii to note that they will now be paid and those ones who never surrendered that imprest will now have to surrender it plus interest. It is important that we follow the rule of law to the latter. Madam Temporary Speaker, I do not agree completely with my colleagues that there was an issue of capacity in terms of the accounting officers. These accounting officers belong to professional bodies. They were working in different department of the national Government, including the Treasury before they were seconded to the county governments. We have institutions in this country, like the Kenya School of Government (KSG), which trains these people on different regulations. 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, since I see no requests, I will now call upon the Mover to reply.

Madam Temporary Speaker, how I wish that the other side that proclaims to be in Government had at least one person to help us on this debate. At least on this side I see some gallant men and women. I beg to reply.

Hon. Senators, pursuant to Standing Order 79(1) and (2), I determine that this matter concerns counties. Therefore, that calls for a vote by delegations, which cannot be done at this moment. Proceed, Sen. M. Kajwang’.

Madam Temporary Speaker, pursuant to Standing Order 61(3), I rise to request that we defer the putting on the question on the Motion to a later date. Thank you, Madam Temporary Speaker.

I, therefore, defer this matter, so that the Question may be put tomorrow.

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 6.30 p.m., time to interrupt the Business of the House. The Senate, therefore, stands adjourned until tomorrow, Thursday, 20th September, 2018, at 2.30 p.m. 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.