Hansard Summary

Senators reviewed procedural motions including an amendment to the adjournment date, an extension of the sitting, and the adoption of a committee report on the Division of Revenue Bill. They highlighted the importance of devolution, urging members to engage with their counties and maintain public confidence. The debate was conducted with decorum and a focus on legislative progress. Senators questioned the purpose and large budget of the Ministry of Devolution, challenged the legality of County Commissioners, and debated constitutional provisions governing devolution, while the Speaker intervened to manage points of order. The discussion highlighted tensions between the Jubilee government’s approach to devolution and the Senate’s scrutiny of its implementation. Senators debated a public petition related to a proposed Licensing Act, but several members complained they had not received the document in time to review it. The Speaker and the minority leader discussed procedural improvements, urging that papers be distributed with the order paper for future sittings. The session also referenced the Joint Report on the Division of Revenue Bill.

Sentimental Analysis

Mixed

THE PARLIAMENT OF KENYA

THE SENATE

THE HANSARD

PARLIAMENT OF KENYA

Thursday, 23nd May, 2013

[The Speaker (Mr. Ethuro) in the Chair]

QUORUM CALL AT COMMENCEMENT OF SITTING

The Speaker (Mr. Ethuro)

Order, Hon. Senators! Could we confirm if we have a quorum?

The Clerk of the Senate (Mr. Nyegenye) : Mr. Speaker, Sir, we have 20 hon. Senators present in the Senate. We have a quorum

The Speaker (Mr. Ethuro)

Let us proceed.

PETITION ON THE ENACTMENT OF THE LICENSING ACT, 2013

On a point of order, Mr. Speaker, Sir. I do not know whether it is escaping your attention, but last week you had ruled that you will give us an opportunity today to ventilate on the petition from a member of the public.

The Speaker (Mr. Ethuro)

The hon. Senator for Kakamega, it cannot escape the Chair’s attention nor yours nor the rest of the Senate, because that is exactly why that order has been called out for petitions. So, it is an opportunity to invite you now to make a contribution to the petition I presented last Thursday.

This is your opportunity, Dr. Khalwale.

Mr. Speaker, Sir, it is very exciting that whereas we think we are either senior or in the Upper or Lower House, members of the public seem to be ahead of us. To the best of my knowledge, neither the Lower House nor this Upper House has had an opportunity to bring a petition, but already a member of the public has brought one. So, I want to congratulate Humphrey Khaunya, but I want to point out the following.

That in the objectives of this proposed Bill, he says in Part “a” that he wants to use the proposed Bill to promote investments in rural areas to further Kenya’s economic objectives. In objective No.“j,” he says that he wants to remove all barriers to small business operations.

Mr. Speaker, Sir, if this is the case, then it is the more reason why we should not have this kind of law. It will, therefore, be---

The Speaker (Mr. Ethuro)

What is it, Senator for Migori?

Mr. Speaker, Sir, will I be in order to request Sen. (Dr.) Khalwale to read the petition again so that we can understand him better as he continues with debate?

The Speaker (Mr. Ethuro)

Senator for Migori, that is not for Sen. (Dr.) Khalwale to dispose; that is for the Chair. You remember the Chair read the petition to you last week, and Senators petitioned the Chair that because they had not received copies of the petition, they should be allowed more time. So, we gave a week and I am sure a week is more than enough for Senators to read the petition.

What is it, Sen. Kembi-Gitura?

Mr. Speaker, Sir, I do not know about my colleagues, but just this afternoon at about 2.00 p.m., is when I received a document written “Enactment of the Licensing Act” which is, I think, the one that my colleague, Sen. (Dr.) Khalwale, is talking about. I have not even had time to look at it and I hear some of the Senators say that they have not even seen it. So, if it is okay with you, then I do not think this is the opportune time for us to discuss it at all.

Hon. Senators

We have not see it!

I am waiting for the attention of the Speaker.

The Speaker (Mr. Ethuro)

Proceed.

Mr. Speaker, Sir, what I am saying is that I have just seen this document, and I understand that a good number of my colleagues have not seen it too, and they do not know what Dr. Khalwale is talking about. So, I do not know how he proposes to proceed if he wants us to participate in this issue because, personally, I have seen it, but I have not had time to go through it.

Thank you, Mr. Speaker, Sir.

Mr. Speaker, Sir, that is not a valid point of order. To the best of my knowledge, I got this document at 9.30 a.m. in the morning from---

The Speaker (Mr. Ethuro)

Where did you get it from?

From the Office of the Clerk; not from the actual office, but from the girl who seats at the reception where we pick documents---

The Speaker (Mr. Ethuro)

From Room 105?

Yes, from Room 105; that is where I picked my document. And I did so because I was aware that today was meant for this business. So, if you make a ruling, I will proceed.

The Speaker (Mr. Ethuro)

Before I do so, let me have an indication of those ones who have not seen the document.

Next order.

On a point of order, Mr. Speaker, Sir. May I request very humbly that when such a document is tabled, because we are not many and we have enough staff here, that on a day of sitting like this, could they just distribute the document or attach it to the Order Paper of the day and give to every Senator? It makes it a lot easier. This will be in addition to having the documents in Room 105, of course.

The Speaker (Mr. Ethuro)

Order! Order! I thought there was a document to be tabled; the Joint Report.

Yes, Sen. Billow?

PAPER LAID JOINT REPORT ON THE DIVISION OF REVENUE BILL, (NATIONAL ASSEMBLY BILL NO.1 OF 2013)

The Speaker (Mr. Ethuro)

Joint Report of the Standing Committee on Finance, Commerce and Economic Affairs and the Sessional Committee on Devolved Government on the Division of Revenue Bill (National Assembly Bill No.1 of 2013).

Thank you, Mr. Speaker, Sir.

The Speaker (Mr. Ethuro)

Next Order.

NOTICES OF MOTION

ESTABLISHMENT OF LEVEL FIVE HOSPITALS IN ALL 47 COUNTIES

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

THAT, aware that in the last 50 years, the best equipped public hospitals were established in certain regions in Kenya to the exclusion of other regions; appreciating that the introduction of the devolved system of Government through the Constitution of Kenya, 2010, was aimed at equalisation of development across the country; concerned about the high maternal, infant and child mortality rates in Kenya mainly caused by lack of primary and secondary health services, the Senate resolves that the Government establishes a Level Five Hospital in each of the 47 counties and a Level Four Hospital in every sub-county before the expiry of the term of the current Government, and provides annual reports on the development of the hospitals to the Senate through the Senate Standing Committee on Health, Labour and Social Welfare.

The Speaker (Mr. Ethuro)

Sen. Mukite?

ESTABLISHMENT OF GRADUATE ENTERPRISE FUND

Mr. Speaker, Sir, I beg to give notice of the following Motion:- THAT, aware that the level of unemployment among the youth in Kenya is over 70 per cent and is rising; concerned that the formal sector is unable to generate sufficient formal employment for college graduates resulting in far reaching ramifications to the economy and societies across all counties in Kenya; noting that the youth are unable to venture into private enterprises because of lack to access to affordable credit, the Senate urges the Government to take urgent and immediate steps to ensure legislation is enacted to provide for the establishment of a graduate enterprise fund to offer revolving, interest free loans to unemployed graduates in all the 47counties.

The Speaker (Mr. Ethuro)

Next Order.

STATEMENTS

ROLE OF THE NEWLY CREATED DEPARTMENT OF DEVOLUTION

Thank you, Mr. Speaker, Sir. I stand under Standing Order No.43 (2) (c) to request for a Statement from the Chairperson of the Sessional Committee on Devolved Government on the role of the newly created Department of Devolution. I would like him to clarify the following issues. One, what is the relevance of this department in view of the fact that the national and county levels of government are two distinct and interdependent only to the extent provided for in Article 6 (2) of the Constitution? Two, I would like him to clarify whether the Department is to be used, misused or abused by the national Government in an attempt to control our county governments. Finally, I would like him to clarify what the connection is between the Department on Devolution and the County Commissioners, who are currently in office despite a High Court ruling declaring them illegal.

Thank you, Mr. Speaker, Sir.

(Applause)
The Speaker (Mr. Ethuro)

Chairman of the Committee?

Mr. Speaker, Sir, I want to thank my colleague for that very important question. I can answer it today, if need be.

The Speaker (Mr. Ethuro)

Proceed.

Mr. Speaker, Sir, if you look at what they call Circular No.1, which the President issued in so far as the Department of Devolution is concerned – actually it is what is called the Ministry of Devolution and Planning – you would easily say that the title is misleading, because if you look at the contents of that Ministry, the larger percentage of the Ministry is involved in matters of planning, and planning is a function of national Government.

This Ministry is an amalgamation of about six Ministries; first thee is what used to be the Ministry of Planning. So, even if you look at the budget, you will realize that the highest function is planning. Two, it also includes the Ministry which used to be for youth. So, you will find that, inside there, there is the Youth Enterprise Fund. Three, it also includes what used to be the Ministry of Gender. You will find there also the functions that relate to gender issues. Lastly, in the Ministry, there is provision of matters of inter-governmental relations. If you look at the Inter-Governmental Relations Act, it talks about the facilitation by the Cabinet Secretary in charge of Devolution on issues related to inter-governmental relations. If you go to the Inter-Governmental Relations Act, there are three institutions which have been created there; one is the Tribunal, two is the Council of Governors, and three is the Summit. Now, the coming together of the Summit, which brings together the President and the Governors, needs a department at the national level that will facilitate that relationship.

Two, the Constitution in the Sixth Schedule provides that the function of the national Government is to ensure that capacity of the county governments is built in the

first three years of the transition period. So, that Ministry will be in charge of co- ordination of capacity building by national Government during the transitional period to the counties. We have discussed in this House that counties are lacking capacity to deal with matters such as budgeting and creating office infrastructure at the local level. So, that is the function of that Ministry for the short time. If you look at the budget, you could almost say that, that function of inter-governmental relations that is going to be dealt with that Ministry is about 5 per cent of the budget allocation to that Ministry.

Mr. Speaker Sir, there is the question of; does it have anything to do with co- ordination of county governments? That Ministry has nothing to do with the co- ordination of national government administration. Indeed, the office that will do that co- ordination are the county commissioners. The work that the county commissioners are dealing with is basically the Ministry of Interior and co-ordination of national Government; I take notice that the President has just nominated the Cabinet Secretary to be vetted for that Ministry.

For that reason, Mr. Speaker, Sir, the Ministry of Devolution has nothing to do with the county commissioners. There is no correlation. The question of these county commissioners being in office illegally even after the courts have made a decision that they should not be in place does not arise because the decision that was made by the courts was rectified when the National Assembly and the Senator who has asked the question, Sen. (Dr.) – and I must emphasize the part of “Doctor” – Khalwale plus the Leader of Minority, among others, sat and passed a legislation called “National Government Co-ordination Act” that regularized the creation of the offices of county commissioners that are co-ordinating functions of the national government at the county level. This House has a Motion which is pending, and that Motion is going to re-look at the Act itself vis-a-vis whether it is going to affect the relationship between the national and county governments, and whether it has any interferences. When that time comes, we will – all of us as a House – have an opportunity to relook at that legislation. We must remember that the National Assembly – I almost said the Lower House – had decided at that time that there were various legislations that they had passed which may have effect on the Constitution. In fact, there is a question of the constitutionality of legislation that were passed by the National Assembly, and the constitutionality is this; the Constitution in the Schedule says that the National Assembly can sit as a Senate for purpose of passing certain legislations. But the question we need to ask ourselves is: Did the National Assembly at that time consciously sit down and say “today, we are sitting as Senate and, therefore, when we vote, we must vote as delegations that represent the various counties” so that every county has a vote? So, we have questions that this House is going to re-look at various legislations of the National Assembly. At that point in time, my friend, Sen. (Dr.) Khalwale and myself, among others will be raising questions – whether on the Public Finance Management Act, the Intergovernmental Relations Act, the County Governments Act, the Transition to County Governments Act – on whether they are compliant to the requirements that counties require.

So, Mr. Speaker, Sir, I think that question has fairly been answered to the best of my knowledge. I must note, Mr. Speaker, Sir, that the same concerns that the Senator has raised, I had them and I have had a prior meeting with the Cabinet Secretary for

Devolution. You know, this is my department, so I must consult everybody who is dealing with matters of devolution.

Thank you, Mr. Speaker, Sir.

The Speaker (Mr. Ethuro)

The Chair appreciates your submissions, especially when you make reference to constitutionality, but then it escapes you that the same Constitution in transition, Clause 11, indicated about the role of the National Assembly when it serves as the assembly before the Senate, which I think is quite important to appreciate.

Yes, Sen. (Dr.) Khalwale?

Mr. Speaker, Sir, I would like to thank him for the immediate response, but wish to seek the following further clarifications. From his answer, he has made it very clear that this department will mainly or principally be for planning and, probably, with gender issues. Could he come and confirm that, now that he has made that clear, that at no time will the Cabinet Secretary in charge of this Ministry or her agent approach any governor in a matter pertaining to the running of a county; or question any decision that has been taken by any county government in the way they are going to run their counties?

The second point which I would like you to clarify, Sen. Murkomen, is that Article 6 (2) of the Constitution is specific that this interdependence must be with mutual consultation and co-operation. Can you come and confirm; and give us actual dates of the days when the President or the Deputy President consulted either our governors or the Senators, or the county assemblies to seek our concurrence for the need for us to have some structure that is likely to cause confusion or bring in interference?

Finally, Mr. Speaker, Sir---

Please, repeat the second question.

I am talking about Article 6 (2) of the Constitution. The question is; can you come and confirm; and give us actual dates of the days when the President, the Deputy President or their agents consulted or sat with either the governors, members of the county assemblies or the Senators to do consultations so as to seek co- operation through mutual consent for us to have this particular body that, to me, is likely to cause confusion or bring in interference?

My last point on clarification arises from what you have said. You pointed to the Senate Minority Leader and myself, that we were there when we created the National Government Co-ordination Act. It is true; we did it. But as you know, the law is not a dead entity; it is dynamic, and we were responding to a specific need. The specific need was that other departments of Government--- let me give you the example of the Department of Education, which had already posted heads to the counties. We have a guy there called County Education Director. So, there was need to have somebody who would then co-ordinate issues of security, in view of the fact that some of the assets of the former county councils were now at risk.

Mr. Speaker, Sir, So, we were thinking that you have this guy on a transitional basis, as we wait for the Government to arrive, he will take care of this urgent security issue. Could you, therefore, confirm that you will approach the House with an amendment Bill that will completely remove the County Commissioner now that the real custodian, the Chief Executive Officer (CEO) has come?

The Speaker (Mr. Ethuro)

Hon. Senators, I allowed Sen. (Dr.) Khalwale because he is the one who sought the Statement. I will not take more than two clarifications from the rest of you.

Mr. Speaker, Sir, it is erroneous to say that County Commissioners are there illegally. It is good to note that the court never made an order, it just---

The Speaker (Mr. Ethuro)

Order, Sen. Haji! What is your clarification? That sounds like a point of order!

It is not, Mr. Speaker, Sir. I am trying to---

The Speaker (Mr. Ethuro)

Order, Sen. Haji! You are now getting to more dangerous ground---

Okay, Mr. Speaker, Sir.

The Speaker (Mr. Ethuro)

It is up to the Chair to determine what is or is not a point of order!

On a point of information, Mr. Speaker, Sir.

The Speaker (Mr. Ethuro)

Yes, Senator from Migori County.

Mr. Speaker, Sir, in the former Government, the Prime Minister’s office, which was in charge of co-ordination of all Ministries had a budget of Kshs3 billion only. We understand this Ministry has been allocated Kshs68 billion. From the description of the Chair of the Committee on Devolved Government, I find it an amorphous Ministry with no function at all; actually it is a misnomer. Could he confirm that the title given to the Ministry is a misnomer because it has no role in the name it has adopted?

The Speaker (Mr. Ethuro)

Sen. Moses Wetangula. The Senate Minority Leader (Sen. Wetangula) : Mr. Speaker, Sir, could the Chairman also clarify the following:-

One, whether it is true that the High Court ruled that the presence of County Commissioners was illegal and that position was confirmed by none other than the Attorney-General of the Republic of Kenya?

Two, the functions that he has purported to list here within that Ministry are largely vested in the activities of the county governments. These are devolved activities such as matters of youth and women. If you look at the Constitution, even counties are vested with authority to do their own planning. The planning at the national level is very minor. Why should we have a Ministry of Devolution other than the confirmation of the reluctance of the Jubilee Government to fully embrace devolution? They want to continue interfering with devolved units from the centre through the creation of a Ministry that looks completely out of place within the devolved structure and the structures of the new Constitution.

Sen. Moses Wetangula. The Senate Minority Leader (Sen. Wetangula) :

Mr. Speaker, Sir, could the Chairman also clarify the following:- One, whether it is true that the High Court ruled that the presence of County Commissioners was illegal and that position was confirmed by none other than the Attorney-General of the Republic of Kenya? Two, the functions that he has purported to list here within that Ministry are largely vested in the activities of the county governments. These are devolved activities such as matters of youth and women. If you look at the Constitution, even counties are vested with authority to do their own planning. The planning at the national level is very minor. Why should we have a Ministry of Devolution other than the confirmation of the reluctance of the Jubilee Government to fully embrace devolution? They want to continue interfering with devolved units from the centre through the creation of a Ministry that looks completely out of place within the devolved structure and the structures of the new Constitution.

The Speaker (Mr. Ethuro)

Mr. Speaker, Sir, I wish to congratulate the Chairman of the Committee on Devolved Government for doing his homework in advance, and even talking to the Minister, so that he could respond to Sen. (Dr.) Khalwale’s Statement in the manner in which he has done. However, we need a clarification. Since he has a chance to chat with this Minister, and it is the duty of the Minister under the Constitution to advise the President, what did the Minister say she will advise the President on regarding the implementation of the constitutional mandate of devolution? This mandate binds all state

Mr. Speaker, Sir, I wish to congratulate the Chairman of the Committee on Devolved Government for doing his homework in advance, and even talking to the Minister, so that he could respond to Sen. (Dr.) Khalwale’s Statement in the manner in which he has done. However, we need a clarification. Since he has a chance to chat with this Minister, and it is the duty of the Minister under the Constitution to advise the President, what did the Minister say she will advise the President on regarding the implementation of the constitutional mandate of devolution? This mandate binds all state

Mr. Speaker, Sir, first, I really thank my colleagues for the very good questions. There is a misunderstanding in this country and in many countries in the world on matters of devolution. The word “devolution” in the Constitution does not refer to counties. If you read Article 6 (3) of the Constitution, you will realise one very important provision. It says that:-

“A national State organ shall ensure reasonable access to its services in all parts of the Republic, so far as it is appropriate to do so having regard to the nature of the service.” This refers to a national government organ, not a county government organ. If you move on to Article 174 of the Constitution---

The Speaker (Mr. Ethuro):

Sen. Murkomen, which Article did you just read out?

Mr. Speaker, Sir, Article 6 (3) requires that all National Government state organs should ensure that there is reasonable access to its services in all parts of the Republic.

If you read Article 174 (h) , it says:- “The objects of the devolution of government are-

The Speaker (Mr. Ethuro)

Sen. Murkomen, which Article did you just read out?

Mr. Speaker, Sir, Article 6 (3) requires that all National Government state organs should ensure that there is reasonable access to its services in all parts of the Republic.

If you read Article 174 (h) , it says:- “The objects of the devolution of government are-

They have the responsibility to take those functions to the local level. When we came to this House, we said that we are all learning. Am suggesting that- --

(Loud consultations)

Mr. Speaker, Sir, if you could protect me from the noise--- An

Who is making noise? Loud consultations!

(Loud consultations)

Mr. Speaker, Sir, if you could protect me from the noise--- An

hon. Senator

Who is making noise? Loud consultations!

Sorry, the loud consultations.

An

hon. Senator

Mr. Speaker, Sir, you have heard the Chairman of the Committee on Devolved Government admit that he is on the learning curve. My question is not meant to test continuous learning or otherwise!

(Laughter)

What is it, Sen. (Dr.) Khalwale?

Mr. Speaker, Sir, you have heard the Chairman of the Committee on Devolved Government admit that he is on the learning curve. My question is not meant to test continuous learning or otherwise!

(Laughter)
The Speaker (Mr. Ethuro)

Order, Sen. (Dr.) Khalwale! In all fairness to the Chairman of the Committee on Devolved Government, he was referring to what we had said that we are all learning. He has not even completed what he wanted to say, so that we can know whether he has learnt or not!

Proceed, Sen. Murkomen.

interfere with the work of governors or county assemblies, she will be violating the provisions of Article 6(2) which says:-

“The governments at the national and county levels are distinct and inter-dependent and shall conduct their mutual relations on the basis of consultation and co-operation.” There are two important principles listed there. The first principle is that of distinction. I can speak about it for an hour. But the most important thing is to ensure that two levels of government are doing their functions as distinct levels. If you check the Fourth Schedule, you will realise that there are functions that are fully National Government functions and others that are fully county functions. But there is also the principle of interdependence. In the Fourth Schedule, you will realise that Article 1 of the Constitution talks about policy making, for example, the agricultural policy and the county government implementation of that policy. This means that there is a relationship between the national and county governments. They need to operate together and relate. In fact, there are certain functions that are called concurrent functions in the Fourth Schedule. For example, in Part I, on functions of the National Government, there are functions as such disaster management, energy policy including electricity and gas reticulation and energy regulation. The same functions appear in Part II of the Fourth Schedule on the functions of County Governments. That means there are situations where certain functions will overlap. That is why the Constitution talks about consultation and co-operation. None will take orders from the other. If any governor takes orders from the Minister, he will be acting illegally because the Constitution has already talked about co-operation between the two levels of Government.

What is it, Sen. Hassan Omar? Hon. Senators, I would like to remind you that this is not a Motion, but a Statement. We have already utilized more than 15 minutes already.

Mr. Speaker, Sir, I have just consulted Sen. (Dr.) Khalwale. I recognise that Sen. Murkomen is the Chair of a Committee that I belong to. I do not know whether Sen. Murkomen is making a statement on behalf of the Committee, which is not properly seized of this matter. Is he just responding on his own volition?

The Speaker (Mr. Ethuro)

Mr. Speaker, Sir, as I said, we are all learning. Sen. Hassan is also learning. I am responding on behalf of the Minister, not on behalf of the Committee.

An. hon. Senator: Which Minister?

Mr. Speaker, Sir, I am perfectly in order.

The Chair is satisfied that Sen. (Dr.) Khalwale sought a Statement from the Chairman. Sen. Hassan has just confirmed he is only but a Member of the Committee.!

Proceed, Chairman!

Mr. Speaker, Sir, I will proceed to answer the remaining questions very quickly. Consultations and co-operation will continue. That is why Parliament passed the Inter-Governmental Relations Act. The objective was to ensure that consultations and co-operation is maintained. That is why there is a tribunal, a council of governors, a summit and the Senate. This House must not forget that its main objective is to facilitate counties. This is where the main consultations, on behalf of all

The Speaker (Mr. Ethuro)

The Chair is satisfied that Sen. (Dr.) Khalwale sought a Statement from the Chairman. Sen. Hassan has just confirmed he is only but a Member of the Committee.!

Proceed, Chairman!

counties of Kenya, are taking place. Should anything happen to counties, this House has the necessary constitutional powers to look into various issues.

Mr. Speaker, Sir, on the question about departments like education, as a House, we should not forget that the Fourth Schedule has left out about 24 functions. They have listed about 35 functions, but they can be more because some of them are lumped together. There are functions such as Tourism Policy and Development, National Betting, Casinos and other forms of gambling, Public Investment, Health Policy and so on. When performing these functions at a local level, the National Government needs to have a co- ordinating officer, whether you call him a county commissioner or whichever title you give him, they need one person who will bring together all Ministries of Government and co-ordinate on behalf of the National Government.

Mr. Speaker, Sir, I am willing to be informed.

Proceed, Sen. Haji!

Mr. Speaker, Sir, my point of information is that I do not think the county commissioners are illegally in office. It is good to understand the beginning of the story behind their appointment. In the first place, there was no order. There was a just a judgment without a court order. That judgment was misdirected because the Permanent Secretary, Office of the President did not sign the gazette notice which established the county commissioners. It was signed by His Excellency the President. Therefore, it was erroneous. That is why the Permanent Secretary decided to go to court.

The Speaker (Mr. Ethuro)

Thank you, Sen. Haji, for the information. Thirdly, is the question of the amount allocated to the counties. The point is that the National Government will have to create its own administrative structure at the local level whether the officer there is called a County Commissioner or Director of Administration at the County. They need to organize themselves in a manner that will allow them to deliver services to the people. As I said, if there is any question as to any legislation, this House has the power to introduce amendments. I have been asked whether I am planning to bring amendments. We have not reached there because we have not audited these legislations. Our Committee and the committee that has been formed to look into this issue, will have the opportunity to audit all legislations. Indeed, any hon. Senator can come and introduce any amendment if they so wish. When the time comes, we will discuss that matter.

On the question of the finances, I need to point out that all the money that is--- I see the Senate Minority Leader is armed with the breakdown of the budget. If you have a look at that budget, Kshs22 billion has been set aside for the Constituencies Development Fund (CDF) . This House pronounced itself on the matter of the CDF in one way or the other. The CDF has been allocated a lot of money. There is about Kshs25 billion that has been set aside for the Youth Enterprise Fund (YEF) . This Government committed itself to ensuring that all the youth across the country are given resources to do business. That means the process of wealth creation, which is perfectly a function of the National Government -

There is also Kshs12 billion set aside for rural planning. There is no money allocated for interference with county government, there is none. As I said earlier, looking at the Ministry, the name “Devolution” looks scary. It looks as if it is branding the Ministry as that of the former Ministry of Local Authorities. But if you look at this

Mr. Speaker, Sir, my point of information is that I do not think the county commissioners are illegally in office. It is good to understand the beginning of the story behind their appointment. In the first place, there was no order. There was a just a judgment without a court order. That judgment was misdirected because the Permanent Secretary, Office of the President did not sign the gazette notice which established the county commissioners. It was signed by His Excellency the President. Therefore, it was erroneous. That is why the Permanent Secretary decided to go to court.

critically, the resources are not allocated following that function. The resources are more focused on matters of youth, Arid and Semi Arid Lands (ASAL), which used to fall under the mandate of the former Ministry of Northern Kenya and Arid Lands Development. There are also resources towards women, the CDF and a small co-ordination amount on matters of devolution. The truth is that it is misleading to imagine that, that Ministry has any problem in that issue.

Lastly, Sen. Murungi had asked what the Minister, in our discussion, said about advising the President. The Minister was very clear in her mind that she will continuously advise the President to ensure that devolution works. In fact, in future, I will be asking her position, as to what the National Government thinks in certain matters that may be related to this House, for example, the Division of Revenue Bill. The House can demand to know the position on the public discussions of the Division of Revenue Bill and so forth. She is willing and ready to assist counties to move forward. The President has publicly said that our responsibility is to ensure that devolution works. The critics of the Jubilee Government were hoping that they would falter when it comes to putting resources and facilitating counties. In fact, the President met the governors and discussed with them matters of interest to counties. He is planning to meet Senators. Senators are at will to see him or not. But what is important is that this Government and the Minister are committed to ensuring that devolution works.

Thank you, Mr. Speaker, Sir.

critically, the resources are not allocated following that function. The resources are more focused on matters of youth, Arid and Semi Arid Lands (ASAL), which used to fall under the mandate of the former Ministry of Northern Kenya and Arid Lands Development. There are also resources towards women, the CDF and a small co-ordination amount on matters of devolution. The truth is that it is misleading to imagine that, that Ministry has any problem in that issue.

Lastly, Sen. Murungi had asked what the Minister, in our discussion, said about advising the President. The Minister was very clear in her mind that she will continuously advise the President to ensure that devolution works. In fact, in future, I will be asking her position, as to what the National Government thinks in certain matters that may be related to this House, for example, the Division of Revenue Bill. The House can demand to know the position on the public discussions of the Division of Revenue Bill and so forth. She is willing and ready to assist counties to move forward. The President has publicly said that our responsibility is to ensure that devolution works. The critics of the Jubilee Government were hoping that they would falter when it comes to putting resources and facilitating counties. In fact, the President met the governors and discussed with them matters of interest to counties. He is planning to meet Senators. Senators are at will to see him or not. But what is important is that this Government and the Minister are committed to ensuring that devolution works.

Thank you, Mr. Speaker, Sir.

Hon. Senators, there is a Committee chaired by Senator Murkomen. There is also a Motion already before this House on all these matters.

The Senate Minority Leader (Sen. Wetangula) : Mr. Speaker, Sir, but he is misleading us!

The Speaker (Mr. Ethuro)

Sen. Wetangula, if he is misleading the House, you know what to do! You rise on a point of order.

The Senate Minority Leader (Sen. Wetangula) : That is what I have done, Mr. Speaker, Sir.

But Mr. Speaker, Sir, I have additional information.

The Speaker (Mr. Ethuro)

Hon. Senators, there is a Committee chaired by Senator Murkomen. There is also a Motion already before this House on all these matters. The Senate Minority Leader (

Mr. Speaker, Sir, but he is misleading us!

The Speaker (Mr. Ethuro)
(Loud consultations)

Order Senators! Indeed, the consultations are too loud. Let us hear the Senate Leader of Majority.

The Leader of Majority (Sen. Kindiki) : Mr. Speaker, Sir, I stand under Standing 43 (2) , to make the following short Statement. The Order Paper today contains amongst other things a Motion of Adjournment of the Senate until Tuesday 4th June, 2013 which I will be moving later in the course of business today.

Any business that will be outstanding at the close of business today, if the Motion of Adjournment is carried, will be prioritized by the Rules and Business Committee and scheduled for consideration when the Senate resumes. I take this opportunity to thank the Senators for their co-operation and commitment to work.

Thank you.

That is what I have done, Mr. Speaker, Sir.

The Speaker (Mr. Ethuro)

Hon. Senators, my attention has been drawn to a Communication made by the Speaker of the National Assembly at a sitting of the Assembly held on Wednesday 22nd May, 2013 on the matter of the Division of Revenue Bill, 2013. Arising from this Communication, some anxiety may have arisen among the public and in the minds of the county governments in the manner which this Bill is to be disposed off by the Senate. It has, therefore, become necessary that I make a Communication on the disposal of the Division of Revenue Bill, 2013 by the Senate for purposes of the record.

Hon. Senators, let me at the outset state that in keeping with the provisions of Standing Order No.88 (5) , which is replicated in the National Assembly Standing Orders as Standing Order No.87 (5) , this Communication is not intended to criticize or to call to question the proceedings of the National Assembly or indeed, the Communication made by my colleague, the Speaker of the National Assembly. That is for a good reason expressly prohibited in the Standing Orders. This Communication is, therefore, intended only to clarify the role of the Senate with regard to the Division of Revenue Bill, 2013 so as to ensure the smooth transaction of the business of the Senate in accordance with its constitutional mandate and, particularly because we are going to the Committee of the Whole for the same Bill.

The Communication made by the Speaker of the National Assembly on the Division of Revenue Bill, 2013 has been understood to mean that the Division of Revenue Bill, 2013 which is currently before the Senate, having been forwarded to the Senate by the Clerk of the National Assembly by a letter dated 13th May, 2013, to which

The Speaker (Mr. Ethuro)

Proceed, Senate Majority Leader!

STATEMENTS HOUR BUSINESS FOR THE WEEK COMMENCING TUESDAY 27 TH MAY, 2013

Thank you, Mr. Speaker, Sir, I rise under Standing Order No.43 (2) to make the following short Statement.

(Loud consultations)
The Speaker (Mr. Ethuro)

Order Senators! Indeed, the consultations are too loud. Let us hear the Senate Leader of Majority. The Leader of Majority (

Mr. Speaker, Sir, I stand under Standing 43 (2) , to make the following short Statement. The Order Paper today contains amongst other things a Motion of Adjournment of the Senate until Tuesday 4th June, 2013 which I will be moving later in the course of business today. Any business that will be outstanding at the close of business today, if the Motion of Adjournment is carried, will be prioritized by the Rules and Business Committee and scheduled for consideration when the Senate resumes. I take this opportunity to thank the Senators for their co-operation and commitment to work. Thank you.

CONSIDERED RULING THE ROLE OF THE SENATE WITH REGARD TO THE DIVISION OF REVENUE BILL, 2013

The Speaker (Mr. Ethuro)

Yes, indeed!

The Speaker (Mr. Ethuro)

was annexed a message by the Speaker of the National Assembly seeking the concurrence of the Senate on the Bill as proposed by the National Assembly; that it is not properly before the Senate and that the Bill should have been processed and disposed off only by the National Assembly to the exclusion of the Senate.

Hon, Senators, by way of elucidation, simply put, a Division of Revenue Bill is a Bill that seeks to allocate monies or rather to divide the monies before the national and county levels of Government. The enactment of a Division of Revenue Bill then sets the stage for publication by the Senate of the County Allocation of Revenue Bill which, when passed, allocates the monies as between the counties. That is what the Chairman of the Commission on Revenue Allocation (CRA) usually calls the vertical and horizontal allocations. You need to deal with the vertical before the horizontal. With this background in mind, the essence of the position advanced on this matter, is that while the Senate can allocate monies as between the counties, it has no say or no role whatsoever in the determination of the amount of money that will be available for such allocation.

Stretched to its limits, this interpretation would mean that the Senate must merely wait for the National Assembly to determine in a particular year the amount due to the counties, which amount could very well be set at nil despite the provisions of Article 203

The Speaker (Mr. Ethuro)
(Laughter)
The Speaker (Mr. Ethuro)

Sen. Orengo, Kenyans will remember that during the time we were in the trenches, during the second liberation---

An

Yes, indeed!

The Speaker (Mr. Ethuro)

And rightfully so, if I may add. Hon. Senators, having stated that the Bill is properly before the Senate, I will now proceed to the final issue which is the process for disposal of the Division of Revenue Bill, 2013, once the Senate has concluded its consideration of the Bill which is as follows.

On conclusion of consideration of the Bill by the Senate, the procedure is provided under Standing Order 147. It says:-

“When a Bill which originated in the National Assembly has been read a Third Time in the Senate, the Clerk shall either-

The Speaker (Mr. Ethuro)

I am glad, hon. Senators, that you have started self regulation.

Again, observe Standing Order No.88 (5) .

The Speaker (Mr. Ethuro)

On a point of order, Mr. Speaker, Sir. I rise on a point of order to say that I am a very proud Kenyan today having listened to an extremely useful and sobering ruling from the Chair because we had reached a point where many Kenyans were getting worried. When you have such powerful institutions like the two Chambers of Parliament engaging in some altercation, you are setting the country towards a constitutional crisis. I just want to say that I am very humbled and proud to be a Member of this distinguished House because it appears as if going forward, we will be the voice that will sober up our country. I have listened to the ruling and every statement that you have made has been backed by authority, facts and points of law. That is the direction we want to take so that we move our country from a country governed by the rule of men to a country governed by the rule of law. Without much ado, I commend you for that ruling.

(Laughter)

Sen. Orengo, Kenyans will remember that during the time we were in the trenches, during the second liberation---

An

hon. Senator
(Laughter)

An

I was there with hon. Orengo, ask him. I am not your age mate. Even Sen. Omar Hassan was there in Mageuzi. We used to advance the frontier of democracy on the streets using demonstrations and street language. However, now that we have got the new Constitution, the frontier of democracy in this country will be advanced through engagement of great minds.

I am, therefore, very delighted that you have engaged your mind and I want to urge you, with tremendous respect, to the Speaker of the Lower House that you continue engaging as great minds. Remember one cardinal thing that any ruling you will be giving us is not meant to impress us; impress Kenyans, but to be done in the best interest of the law. Therefore, listening to a Speaker of the National Assembly speaking, I take it that he is speaking as the institution of the Office of the Speaker. So, this puts to question some of the experts we might have hired at various levels now that some rulings or directions from the Chair are wanting to that extent.

I beg to request that we continue engaging.

The Speaker (Mr. Ethuro)

I am glad, hon. Senators, that you have started self regulation.

Again, observe Standing Order No.88 (5) .

On a point of order, Mr. Speaker, Sir. I rise on a point of order to say that I am a very proud Kenyan today having listened to an extremely useful and sobering ruling from the Chair because we had reached a point where many Kenyans were getting worried. When you have such powerful institutions like the two Chambers of Parliament engaging in some altercation, you are setting the country towards a constitutional crisis. I just want to say that I am very humbled and proud to be a Member of this distinguished House because it appears as if going forward, we will be the voice that will sober up our country. I have listened to the ruling and every statement that you have made has been backed by authority, facts and points of law. That is the direction we want to take so that we move our country from a country governed by the rule of men to a country governed by the rule of law. Without much ado, I commend you for that ruling.

On a point of order, Mr. Speaker, Sir. Given the importance of the ruling you have given, would I be in order to ask your office to get space in the newspapers and publish the ruling?

(Applause)
The Speaker (Mr. Ethuro)

It shall be so ordered! The Senate Minority Leader (

Mr. Speaker, Sir, thank you for this opportunity. Over the last two days we have demonstrated something that I learnt, called the art of generalship. The art of generalship is that, where you are ready to give a shoot-to-kill order, but compassionate enough to be able to pardon those who are able to face the noose.

Mr. Speaker, Sir, yesterday, young Senators in this House had decided that they were going to defend the integrity and leadership of this House. In fact, Sen. Sonko had told me that they had appointed me at that point to speak in the Press Conference. I had put my sound bites in order so that we could speak in defence of this Senate. But out of Mr. Speaker’s wisdom and leadership, we decided to return to the base and we did so. Further to that, even despite further attempt towards provocation and acrimony, the Speaker has still demonstrated wisdom. In fact, he has taught us law and asserted the authority of this House. I must commend him because this is his first landmark ruling. In this ruling, we have seen wisdom, intellect and etiquette in terms of the rule of law. As a young Senator in this House, I want to appreciate the fact that I am properly in this House and hope to learn from the broader diversity.

Mr. Speaker, Sir, your ruling, as Sen. Orengo has said, will go into history. I do believe that we will make reference to it in future. I want the Speaker of the other House and county assemblies, to borrow a cue from the Speaker of the Senate, who has demonstrated that rather than confrontation, we shall opt for compromise. We shall opt for tranquility rather than acrimony.

Mr. Speaker, Sir, I commend this House. I am a proud Member of this House.

On a point of order, Mr. Speaker, Sir. I also wish to go on record in congratulating you and the institution of the Senate for that precedent-setting ruling founded on law, facts, reason, devoid of emotion and devoid of irrational thinking. I urge that we keep that level of operation. We must continue showing the country the difference and the reason we are not just the Senate, but the Upper House.

The Speaker (Mr. Ethuro)

Thank you.

(Laughter)

An

hon. Senator

The lion of Meru.

On a point of order, Mr. Speaker, Sir. I am not the “lion of Meru” but the “king of Meru.” I am very proud of you this afternoon. That is what we expect of a Speaker of the Upper House. As a lawyer, I was very much impressed by the interpretation of the Constitutional provisions which were in accordance with Article 259 of the Constitution. I want to support the proposal by hon. Anyang’-Nyong’o that this being a landmark ruling in this House, it be published, not only in one newspaper, but in the three major dailies in this country as soon as possible, so that every Kenyan can read and see that this is, indeed, the House of reason; the House that is promoting devolution and the rule of law.

On a point of order, Mr. Speaker, Sir. On the footsteps of the “lion king of Meru” I must congratulate you because as I walked in, I knew that the words of wisdom were flowing from that Chair. I can now truly say that in our wisdom you were elected to be the Speaker of the Senate. As you know, rulings by Speakers are not only precedent-setting for our country. I am sure that one of these fine days, not just in the Commonwealth, but everywhere there is a bicameral system of Government, this ruling will feature in some Legislatures of the world.

It is important to know how to interpret the Constitution. One of the principles that are contained in the Constitution is to advance the rule of law, so that if you are a public officer or an institution, you cannot be allowed to make a decision today and tomorrow, you wake up and say: “I have changed my mind.” That is not the spirit of the law, because you can appear before a magistrate or Judge and he makes a decision, and then the next day he says: “Recall that gentleman. I have slept over this matter and have a different ruling.” In law, once you make a ruling, your powers are spent. You are functus officio and have no further business dealing with that matter.

Mr. Speaker, Sir, therefore, this is a great day for this Senate. For these three weeks that we have sat, nothing other than wisdom has come from this House. Truly speaking, if one had to decide which is the Lower or Upper House, it need not be stated. I think it is obvious which the Upper House is.

Thank you, Mr. Speaker, Sir.

Mr. Speaker, Sir, I wish you knew how difficult it is to sit on those seats, stand and sit down again, but I think that I have tried. Thank you for seeing me.

Mr. Speaker, Sir, I want to say that you have made us proud this afternoon. I am feeling very confident. When there is a mob, you do not understand how the wind blows. That other House is very huge and the wind was almost blowing us. I want to congratulate and assure you that we will support you. I am sure that my vote was not wasted. We have a true Speaker that will protect us.

Mr. Speaker, Sir, I want to tell my colleagues, the Senators, the Constitution that we have, truly should govern us. If we truly take it as our Bible, read and understand it, then the Senate will never go wrong.

Mr. Speaker, Sir, I congratulate you.

Mr. Speaker, Sir, thank you for this opportunity. Over the last two days we have demonstrated something that I learnt, called the art of generalship. The art of generalship is that, where you are ready to give a shoot-to-kill order, but compassionate enough to be able to pardon those who are able to face the noose.

Mr. Speaker, Sir, yesterday, young Senators in this House had decided that they were going to defend the integrity and leadership of this House. In fact, Sen. Sonko had told me that they had appointed me at that point to speak in the Press Conference. I had put my sound bites in order so that we could speak in defence of this Senate. But out of Mr. Speaker’s wisdom and leadership, we decided to return to the base and we did so. Further to that, even despite further attempt towards provocation and acrimony, the Speaker has still demonstrated wisdom. In fact, he has taught us law and asserted the authority of this House. I must commend him because this is his first landmark ruling. In this ruling, we have seen wisdom, intellect and etiquette in terms of the rule of law. As a young Senator in this House, I want to appreciate the fact that I am properly in this House and hope to learn from the broader diversity.

Mr. Speaker, Sir, your ruling, as Sen. Orengo has said, will go into history. I do believe that we will make reference to it in future. I want the Speaker of the other House and county assemblies, to borrow a cue from the Speaker of the Senate, who has demonstrated that rather than confrontation, we shall opt for compromise. We shall opt for tranquility rather than acrimony.

Mr. Speaker, Sir, I commend this House. I am a proud Member of this House.

The Speaker (Mr. Ethuro)

Let us be brief, hon. Senators. Yes, Sen. (Prof.) Anyang’-Nyong’o.

Mr. Speaker, Sir, I will also be very brief. I want to congratulate you for such a wonderful ruling. I think that the nation has been asking: “Where is Solomon of 2013?” I think that today the Speaker of the Upper House has demonstrated Solomonic wisdom, keeping into the law. That was a well researched ruling that delved into the jurisprudence of our Constitution. I think that you have upheld the spirit of constitutionalism. I commend you for that.

Mr. Speaker, Sir, like Sen. Anyang’-Nyong’o had said, I think that this House should buy space and publish this ruling in its entirety because it is important for the nation to understand the role and functions of this House when it comes to matters such as this.

Mr. Speaker, Sir, secondly, I would request you to also give us Senators a soft copy of that ruling, so that I can put it on my Facebook page and circulate it using Twitter, because it is important that this ruling is, not only read here, but all over the world. Many of my followers live in various countries in Africa, Europe and the United States. It is important that they continue reading and circulating this ruling, so that others can learn from it. I think that this is the best decision. In future, like Sen. Anyang’- Nyong’o has said, we should continue answering from the perspective of our job, rather than spending more time on sideshows in the media and any other place. We must just answer them by doing our job.

Thank you, Mr. Speaker, Sir.

Mr. Speaker, Sir, I, too, wish to sincerely congratulate you, first, on providing leadership to the Senate when we were under attack, but even more importantly now, delivering a first class ruling, which will be the pride of any of the highest courts in any county in the world. This is because in your ruling, each statement was supported by a Section of the Constitution. We are only two Senior Counsels in this House, My other Senior Counsel also concurs that, really, this was the best ruling that we could have.

Mr. Speaker, Sir, we, as the Senate; the Upper House, are supposed, to provide guidance to the nation. By your ruling you have enabled us, as the Senate, to provide guidance to this nation on a matter which could easily have gone out of hand and undermined the new Constitution. I do concur that this should be published in all the newspapers. I do not know whether it is late, but I have been involved in the newspaper industry and know that the Friday publication is normally the widest possible circulation that one can have in a week, maybe apart from Sunday. So, if it is possible for this statement to be properly published in tomorrow’s newspapers, let it be, so that everybody gets it. If it is at all possible, we could have a translation into Kiswahili, because we have Taifa Leo, so that the ordinary person also reads it in Kiswahili Language.

Mr. Speaker, Sir, apart from the publication, I was just wondering, because we are now in the final stages on the Division of Revenue Bill and are about to hand over this to the National Assembly. The Speaker of the National Assembly has made a ruling. Therefore, it does appear to me that we should find a way of communicating this ruling officially to the Speaker of the National Assembly. He is a lawyer and may very well be persuaded by your very persuasive ruling that you have made this afternoon. It may not be necessary to go into mediation and all those other matters, because we, lawyers, also can see a correct interpretation when it comes. So, I would urge you to send the ruling properly to the Speaker of the Lower House, particularly reminding him that he had actually come to the same conclusion as the one that you have arrived at, at this ruling and that is why he wrote to you and sent his opinion, that this was a Bill that concerns counties. It is not a Special Bill, but an Ordinary Bill. So, in a sense, you are agreeing with what he had already initially agreed. So, it may be easy for you to persuade him otherwise, so that we do not go into the lengthy process of mediation and other things that may, again, unnecessarily delay this very important Bill. This is because we really

must move on as quickly as possible. In fact, we are very late. We want to see our counties start functioning. I hope that common sense will now prevail in the Lower House and that they will now recognize that we are the Upper House because we are guiding the nation and them on issues of law and interpretation of the Constitution.

Thank you, Mr. Speaker, Sir.

Sen. Njoroge

Mr. Speaker, Sir, according to our traditions in the old days when there was any dispute in the local communities, the wise old men would sit with the chairman to resolve the dispute. If the chairman came up with a wise decision, the women of the village would come with fresh milk and pour it on the wise counsel of the chairman until he was soaked in it. I know we have ladies in the House, but there is no milk. Suffice it to say, if we had the milk, you would be soaked in it now. Mine is to congratulate you too and to say just like my colleagues have said that, indeed, this matter needed to be resolved, once and for all. We required this kind of ruling so that the people of this country can stabilize because they expect the work of these two Houses to be done in accordance with the law. I congratulate you. As one of my colleagues said, you were, indeed, elected as the Speaker on merit. If we continue in that way, I am sure the disputes and the disagreements on the areas that seem to be grey will, not only be settled, but I am sure the distinction will be made. We will continue to stick to that ruling and respect Standing Order No.88 (5) . We will always be and we shall remain the Upper House.

The Deputy Speaker (Mr. Ethuro)

The last one was Sen. Haji, but I am not seeing him. So, I will give the chance to Sen. G. G. Kariuki and maybe one last chance for gender purposes, to Sen. (Prof.) Zani.

Mr. Speaker, Sir, I want to join my colleagues in thanking you for this very good ruling. It is good and it came at the right time. We nearly lost the battle until you came up---

(Loud consultations)

Mr. Chairman, Sir, I heard you call out Clause 3, but we have proposed amendments on Clause 2.

The Chairperson (Sen. Kembi-Gitura) : We shall come to it. I want to refer you to Standing Order No.134 on the sequence of going through the Bill at the Committee Stage. We will come to that one at the end when we are dealing with the title, Clause 1 and then Clause 2.

The Deputy Speaker (Mr. Ethuro)

Mr. Chairman, Sir, I beg to move an amendment on Clause 3. I beg to move:- THAT, Clause 3 of the Bill be amended in paragraph (c) by deleting the word “ongoing” appearing after the words “continuation of”. Mr. Chairman, Sir, the reasons for that proposed amendment is that if you read that clause you will find that it reads:-

“The object and purpose of this Act is to provide for-

Mr. Speaker, Sir, Kenya and, indeed, the whole world is watching to see how the Parliament of Kenya is conducting itself. They are watching to see how hon. Members in both the National Assembly and the Senate are conducting themselves. I think it came as a shock to many Kenyans to watch the arguments which, unfortunately, were in public. This created a level of shock. People were wondering how the future will be. What is going to be the future for the implementation of this Constitution and the devolution? I would like to congratulate you for stepping in to make sure that we work amicably with the other House. I would like to congratulate you, especially for the restraint that you have exercised. We saw more restraint from this House, especially from you than we did from the National Assembly. Also, the level of consistency stood out. We must congratulate you for that guidance because it gives us confidence as the Senate that we can make resolutions and be able to adhere to them. We hope that as we move into the future, we will get to a point where there is going to be more convergence. We want to engage in more consultations and avoid disappointing Kenyans. We should have a proud Parliament of Kenya.

Thank you very much.

The Deputy Speaker (Mr. Ethuro)

will find that we have four proposed amendments and we do not know whether there will be amendments on amendments. If we ring the Division Bell on each of this, it means that there will be four divisions and we shall never finish. This is a test because this is the first time that we are in the Committee of the Whole. I want you to listen to me carefully because it will be for your adoption so that if you agree we proceed in that manner. Sen. Billow has moved an amendment to Clause 3.What we should do under the Standing Order, since this is a matter to do with counties under Standing Order No.69, we shall have to ring the Division Bell and then we call you by counties. We will do that to this one and then go to the next. That means by 8.00 p.m. or midnight, we shall still be here. So, I am proposing that we deal with all the four proposed amendments, debate all of them, then once we have finished, we shall ring one Division Bell. There will be a roll call on each of the amendments, because that is what the law requires. We cannot do a guillotine. At the end, we will do a roll call on each of the proposed amended clauses. Now, if there is no Article where there is no proposed amendment, again, I will propose that we reserve them and then we do only one Division. We go through all these issues together and be done with them. If you agree, then that is the proposal I am making as the Chairman of the Committee of the Whole.

The Senate Minority Leader (Sen. Wetangula): Mr. Chairman, Sir, I was commending you that you are very clever. That is something I was about to recommend.

The Chairperson (Sen. Kembi-Gitura): Do we have any other views on this? Once we adopt this, that is how we will be proceeding in the Committee of the Whole when considering Bills.

COMMITTEE OF THE WHOLE

[The Speaker (Mr. Ethuro) left the Chair]

IN THE COMMITTEE

[The Chairperson (Sen. Kembi-Gitura) took the Chair]
The Deputy Speaker (Mr. Ethuro)

Then I did not hear him well. The Chairperson (Sen. Kembi-Gitura) : That is clear in the law. So, Sen. Billow has moved his amendment to Clause 3. If there is no debate, then we proceed to the next? Clause 4

Sen. Mwakulegwa

On a point of order, Mr. Chairman, Sir. I heard you propose that we go clause by clause as we vote. We are of the opinion that we should go through the report and if it is approved, we vote at once instead of voting clause by clause because that will take a very long time and yet we have other business that we would want to undertake. The Chairperson (

Mr. Chairman, Sir, I beg to move that Clause 4 be amended –

Thank you very much, Senator. What we want to do is what our Standing Orders say regarding Bills that have to do with counties. We must look at each amendment and even where there is no amendment we still have to indicate by counties. However, we will try and see how we can marry the two positions so that we can move on faster because we have to finish today. I have already proposed that Clause 3 be part of the Bill.

We simply want to say that if the actual revenue raised in a financial year falls short, that shortfall should be borne by the national Government. It should not be the burden of the county governments.

The Homa Bay Delegation votes “yes” for all the clauses. The Chairperson (Sen. Kembi-Gitura) : For purposes of the HANSARD, hon. Sen. Kajwang has voted for Clause 3.

On behalf of the Leader of the Delegation, I vote yes. An hon. Senator: Do you have the powers? The Chairperson (Sen. Kembi-Gitura) : I want to reiterate this, as the Chairman of the Committee of the Whole, that this thing about delegated power is important. I could take it that you have the power, but you have nothing to show for it. I think I should make that clear. I have said this before. This should be done after a communication has been received at the Speaker’s Office through the Clerk’s Office. When you are voting, there should also be a record here to show. I must say that I have not seen it myself.

We shall come to it. I want to refer you to Standing Order No.134 on the sequence of going through the Bill at the Committee Stage. We will come to that one at the end when we are dealing with the title, Clause 1 and then Clause 2.

Mr. Chairman, Sir, I beg to move an amendment on Clause 3. I beg to move:- THAT, Clause 3 of the Bill be amended in paragraph (c) by deleting the word “ongoing” appearing after the words “continuation of”. Mr. Chairman, Sir, the reasons for that proposed amendment is that if you read that clause you will find that it reads:-

“The object and purpose of this Act is to provide for-

On a point of order, Mr. Deputy Speaker, Sir. I want to agree with you fully that the suggestion by the Professor is not sufficient. Voting is by Delegation. It goes on record to show how a delegation has voted and through who. Therefore, other than processing the authority of the Speaker, the Head of that Delegation should come with that authority before the House, so that if there is a matter, it is put to debate. This is to ensure that a big delegation like that one from Baringo--- The other time, it was joined by the Delegation from Trans Nzoia, it brings no confusion. Clause 3

AYES: Sen. Abdirahman, Wajir County; Sen. (Prof.) Anyang’-Nyong’o, Kisumu County; Sen. Billow, Mandera County; Sen. Boy, Kwale County; Sen. Bule, Tana River County; Sen. Chiaba, Lamu County; Sen. Haji, Garissa County, Sen. Harguara, Marsabit County, Sen. Hassan, Mombasa County; Sen. Kajwang’, Homa Bay County; Sen. G. G. Kariuki, Laikipia County; Sen. Kembi-Gitura, Murang’a County; Sen. Khaniri, Vihiga County; Sen. Kivuti, Embu County; Sen. (Dr.) Kuti, Isiolo County; Sen.(Prof.) Lonyangapuo, West Pokot County; Sen. Mbuvi, Nairobi County; Sen. Melly, Uasin Gishu County; Sen. Mositet, Kajiado County; Sen. Mungai, Nakuru County; Sen. Munyes, Turkana County; Sen. (Eng.) Muriuki, Nyandarua County; Sen. Murkomen, Elgeyo-Marakwet County; Sen. Murungi, Meru County; Sen. Musila, Kitui County; Sen. Muthama, Machakos County; Sen. Mwakulegwa, Taita-Taveta County; Sen. Ndiema, Trans Nzoia County; Sen. Njoroge, Kiambu County; Sen. Obure, Kisii County; Sen. Orengo, Siaya County; Sen. Sang, Nandi County; Sen. Wako, Busia County and Sen. Wetangula, Bungoma County.

Teller of the Ayes:

Do we have any other views on this? Once we adopt this, that is how we will be proceeding in the Committee of the Whole when considering Bills.

Mr. Chairman, Sir, what I am trying to seek from you is whether we are doing it from the advice of the Chair. How would that advice been seen in future in terms of the Standing Orders? What do our Standing Orders say? They anticipated this situation to arise. We cannot rush the business of this House because it will take too long. We have to go by what the Standing Orders say. If there is nothing in the Standing Orders, then we will resort to doing it kienyeji. The Chairperson (

On a point of order, Mr. Chairman, Sir. You did give direction on how to proceed and we all agreed to it. But having agreed that we are all in a learning process and so on, I am just wondering what Standing Order we are breaking, if we said that we are voting for Clause 2 as amended and Clause 3 as amended, especially in situations where we already know that during the debate there was no opposition to it. Why would we not---

The Chairperson (Sen. Kembi-Gitura) : I have understood you, Sen. Karue. Sen. Murkomen.

I do not know whether kienyeji is a parliamentary word, but we shall not be in breach of any Standing Order because there shall be voting by delegations and a roll call on each of the proposed amendments. We should be practical because this is a very small Bill. There are only four items to deal with. There are six sections in all. What of a Bill which has 100 sections with 20 to 50 proposed amendments? It would take us more than a week to finish a Bill. We have only today to finish with this Bill and return it to the National Assembly.

An

hon. Senator

He said that!

What I am proposing is that when your delegation is called, you vote as follows: “I vote yes, no or abstain on Clause 4, 5 and 6.” If you have a contrary view or want to vote different, then that will be noted.

Mr. Chairman, Sir, if you vote that you are voting “yes” on Clauses 4 and 5, it means that it is a collective vote.

That is clear in the law. So, Sen. Billow has moved his amendment to Clause 3. If there is no debate, then we proceed to the next? Clause 4

and, when Senators who wish to speak have spoken, the Chairperson shall put that question to the Committee for decision.”

Mr. Chairman, Sir, so we cannot do it in an omnibus manner. We have got to do them sequentially and severally, in accordance with Standing Order No.134. That means that you can call each part sequentially, but severally without taking the vote, and then, vote at the end of calling each part, in the terms of Standing Order No.134, which already you have been doing.

Mr. Chairman, Sir, I also wanted to point out that in the tradition of the House, normally each clause must be read for purposes of legislation. For it to go on record that each clause was actually enacted by Parliament or Senate, there should be a record that each clause was actually voted on by the House. I think that Sen. Judith Sijeny remembers when proceedings in the House were subjected to litigation in Arusha. The East African Court of Justice wanted to know what the decision of the House was on each clause and not the Bill as a whole. So, that may be the tradition of Parliament, but we do not have to stick with it.

The Chairperson (Sen. Kembi-Gitura): Thank you, Sen. Orengo. But you notice that we have already dealt with Standing Order No.136. We already went through clause by clause, when we were debating and amending them. We are now at the Roll Call Division. Am I correct?

We simply want to say that if the actual revenue raised in a financial year falls short, that shortfall should be borne by the national Government. It should not be the burden of the county governments.

The Chairperson

Mr. Chairman, Sir, the Clerk can help us. When I stand as the head of the delegation from Homa Bay, you can ask: “How do you vote on this?” I will say: “Yes” or “No”. You will then ask: “How do you vote on Clause 3?” I will say: “Yes” or “No”. This is because we may not know whether it is Clauses 4, 5 or 6.

The Chairperson (Sen. Kembi-Gitura) : Okay. Actually we are in the Committee of the Whole and the rules are less stringent and that is why we are discussing freely. I have given guidelines, but we will adopt what Sen. Kajwang has said as the final position. That is the one that I would like to adopt.

Let us go to the Roll Call. This has to do with Clauses 4, 5, 6 and 7. Clause 4

For purposes of the HANSARD, hon. Sen. Kajwang has voted for Clause 3. (Hon. Senators proceeded to vote)

AYES: Sen. Abdirahman,Wajir County; Sen. (Prof.) Anyang’-Nyong’o, Kisumu Couny; Sen. Billow, Mandera County; Sen. Boy, Kwale County; Sen. Bule, Tana River County; Sen Chiaba, Lamu County; Sen. Haji, Garissa County, Sen. Hargura, Marsabit County, Sen. Hassan, Mombasa County; Sen. Kajwang’, Homa Bay County; Sen. G. G. Kariuki, Laikipia County; Sen. Kembi-Gitura, Murang’a County; Sen. Khaniri, Vihiga County, Sen. Mbuvi, Nairobi County; Sen. Kivuti, Embu County; Sen. (Dr.) Kuti, Isiolo County; Sen.(Prof.) Lonyangopuo, West Pokot County; Sen. Melly, Uasin Gishu County; Sen. Mositet, Kajiado County; Sen. Mungai, Nakuru County; Sen. Munyes, Turkana County; Sen. (Eng.) Muriuki, Nyandarua County; Sen. Njoroge, Kiambu County; Sen. Murkomen, Elgeyo-Marakwet County, Sen. Murungi, Meru County; Sen. Musila, Kitui County; Sen. Muthama, Machakos County; Sen. Mwakulegwa, Taita-Taveta County; Sen. Ndiema, Trans Nzoia County; Sen. Obure, Kisii County; Sen. Orengo, Siaya County; Sen. Sang, Nandi County; Sen. Wako, Busia County and Sen. Wetangula, Bungoma County.

Teller of the Ayes:

I want to reiterate this, as the Chairman of the Committee of the Whole, that this thing about delegated power is important. I could take it that you have the power, but you have nothing to show for it. I think I should make that clear. I have said this before. This should be done after a communication has been received at the Speaker’s Office through the Clerk’s Office. When you are voting, there should also be a record here to show. I must say that I have not seen it myself.

Mr. Deputy Speaker, Sir, I was available when it was deposited at the Speaker’s Office. Therefore, I am a witness. The Chairperson (

County; Sen. Mbuvi, Nairobi County; Sen. Kivuti, Embu County; Sen. (Dr.) Kuti, Isiolo County; Sen.(Prof.) Lonyangopuo, West Pokot County; Sen. Melly, Uasin Gishu County; Sen. Mositet, Kajiado County; Sen. Mungai, Nakuru County; Sen. Munyes, Turkana County; Sen. (Eng.) Muriuki, Nyandarua County; Sen. Murkomen, Elgeyo-Marakwet County, Sen. Murungi, Meru County; Sen. Musila, Kitui County; Sen. Muthama, Machakos County; Sen. Mwakulegwa, Taita-Taveta County; Sen. Ndiema, Trans Nzoia County; Sen. Njoroge, Kiambu County; Sen. Obure, Kisii County; Sen. Orengo, Siaya County; Sen. Sang, Nandi County; Sen. Wako, Busia County and Sen. Wetangula, Bungoma County.

Teller of the Ayes:

On a point of order, Mr. Deputy Speaker, Sir. I agree with you, fully, but the Chair must be consistent. The other day, the Speaker was seated there and people were voting casually. We raised this issue, but there was no response. We agree with you, fully, that we want you to be consistent. Either, there must be a written authority or you exercise your discretion. The Chairperson (

I am afraid that as long as I am seated on this Chair, my discretion on the ruling is simple. We cannot afford to be casual about voting by counties. That is my ruling and we will proceed on that. If you have any proof that you have the designation, I will allow you to vote. If you do not have that right, I will not allow you to vote.

On a point of order, Mr. Deputy Speaker, Sir. I was going to make a suggestion in line with what you have said. When the Division Bell is rung, you should give instructions to the Clerks-at-the-Table to check in the Speaker’s office whether there is any vote consigned to a particular person or a Delegation. To make it better, that announcement should be made just before the Division Bell is rung so that we are aware. The Chairperson (

County; Sen. Sang, Nandi County; Sen. Wako, Busia County and Sen. Wetangula, Bungoma County.

Teller of the Ayes:

On a point of order, Mr. Deputy Speaker, Sir. I want to agree with you fully that the suggestion by the Professor is not sufficient. Voting is by Delegation. It goes on record to show how a delegation has voted and through who. Therefore, other than processing the authority of the Speaker, the Head of that Delegation should come with that authority before the House, so that if there is a matter, it is put to debate. This is to ensure that a big delegation like that one from Baringo--- The other time, it was joined by the Delegation from Trans Nzoia, it brings no confusion. Clause 3

DIVISION ROLL CALL VOTING

AYES: Sen. Abdirahman, Wajir County; Sen. (Prof.) Anyang’-Nyong’o, Kisumu County; Sen. Billow, Mandera County; Sen. Boy, Kwale County; Sen. Bule, Tana River County; Sen. Chiaba, Lamu County; Sen. Haji, Garissa County, Sen. Harguara, Marsabit County, Sen. Hassan, Mombasa County; Sen. Kajwang’, Homa Bay County; Sen. G. G. Kariuki, Laikipia County; Sen. Kembi-Gitura, Murang’a County; Sen. Khaniri, Vihiga County; Sen. Kivuti, Embu County; Sen. (Dr.) Kuti, Isiolo County; Sen.(Prof.) Lonyangapuo, West Pokot County; Sen. Mbuvi, Nairobi County; Sen. Melly, Uasin Gishu County; Sen. Mositet, Kajiado County; Sen. Mungai, Nakuru County; Sen. Munyes, Turkana County; Sen. (Eng.) Muriuki, Nyandarua County; Sen. Murkomen, Elgeyo-Marakwet County; Sen. Murungi, Meru County; Sen. Musila, Kitui County; Sen. Muthama, Machakos County; Sen. Mwakulegwa, Taita-Taveta County; Sen. Ndiema, Trans Nzoia County; Sen. Njoroge, Kiambu County; Sen. Obure, Kisii County; Sen. Orengo, Siaya County; Sen. Sang, Nandi County; Sen. Wako, Busia County and Sen. Wetangula, Bungoma County.

Teller of the Ayes:

Sen. Lesuuda Teller of the Noes
Sen. Hassan The Chairperson (Sen. Kembi-Gitura)

Hon. Senators, the results are in for Clause 3. They are as follows:-

AYES: 34 NOES: Nil ABSENTIONS: Nil

On a point of order, Mr. Chairman, Sir. You did give direction on how to proceed and we all agreed to it. But having agreed that we are all in a learning process and so on, I am just wondering what Standing Order we are breaking, if we said that we are voting for Clause 2 as amended and Clause 3 as amended, especially in situations where we already know that during the debate there was no opposition to it. Why would we not--- The Chairperson (

SCHEDULE REVENUE ALLOCATIONS BETWEEN THE NATIONAL AND COUNTY GOVERNMENTS FOR 2013/2014 TYPE/LEVEL OF GOVERNMENT ALLOCATION REVENUE ALLOCATION PER CENTAGE OF LAST AUDITED REVENUE (KSHS.608.1 BILLION) Kenya Shillings % National Government Allocation 662,375,441,286 108.9

County Governments Allocation 258,000,000,000 42.4

Total Shareable Revenue 920,375,441,286 151.4

Mr. Chairman, Sir, I am of the same opinion with an addition that everytime someone should stand to say that he or she is voting “yes” for Clause 2, Clause 3, Clause 4, for purposes of clarity and then we move on. Let us combine them. The Chairperson (

to amend the figures. The import of the amendment is that the shareable revenue that goes to the county governments will increase from Kshs190 billion provided for in the Bill, to Kshs238 billion. When we obtained the analysis prepared by the Parliamentary Budget Office and also based on presentations we received from the Chairman of the Council of Governors and from the public hearings that we conducted, it became very apparent that Kshs190 billion shared out across the 47 counties would be inadequate to cover the cost of the functions which have been devolved or which will be devolved, effective from 1st July. The effect of it again was very clear. Up to 18 counties will actually suffer a deficit of over Kshs28 billion. In other words, some of the counties will actually have deficits. We have examples; Nyeri County would have a deficit of up to Kshs3.5 billion if we were to share out Kshs190 billion across the 47 counties using that formula. What that means, therefore, is that, 18 counties would not be able to provide services or to pay for the services that have been devolved to the county governments. That would mean that we are actually going to set up the counties for failure. For that reason, it has been decided that indeed, after consultations; we have had sittings with the Treasury Secretary and it is our feeling that there is no way Kshs190 billion can sustain the counties and that is why we increased that figure by Kshs48 billion to bring it to Kshs238 billion.

Mr. Chairman, Sir, we have decided to leave the figure for conditional grants as it is in the Bill. The Kshs20 billion is a grant that is being given conditionally by the Treasury to some counties, specifically, Kshs3.2 billion or Kshs3.4 billion which will actually be money that will be used for the Level Five hospitals in some of the counties and the balance of slightly over Kshs16 billion is money that will be for donor funded projects that must continue to be financed by the national government. That is the basis for the amendment. This is an increase of Kshs48 billion. That would bring the county allocation to 42.4 per cent.

Again, it is clear that it is the Jubilee Government’s commitment; a pledge that has been made by this Government that it will raise the county allocation not at the minimum of 15 per cent but to 40 per cent--- This is a clear indication that 42.4 per cent is indeed higher than the 40 per cent we pledged.

Thank you.

we are not doing anything kienyeji. Just one minute, please. Bear with us. If we agree, we will save a lot of time. So, give us a moment to consult on the Standing Orders and proceed.

(The Chairperson consulted with the Clerk-at-the-Table) I think that we have a way out now. This is not so much a question of learning, but that the Standing Orders are a bit confusing on this issue. I will refer you to Standing Order Nos.72, 73 and 74 and also the Constitution, Article 123. That is the position I will take and how we will proceed. I agree with Sen. Muriuki and Murkomen, that is the way to go. I would like to know whether any other person has a different view before we adopt that position. We would better spend a little more time here, do it correctly and make a precedent on this issue.

What I am proposing is that when your delegation is called, you vote as follows: “I vote yes, no or abstain on Clause 4, 5 and 6.” If you have a contrary view or want to vote different, then that will be noted.

Mr. Chairman, Sir, if you vote that you are voting “yes” on Clauses 4 and 5, it means that it is a collective vote.

- THAT, Clause 2 be amended in the definition of the term “conditional allocations” by deleting the words “conditional allocations” appearing at the commencement of the definition and substituting therefor with the words “conditional grants.” The rationale is simple. The Constitution refers to conditional grants. These are grants which are given whether conditional or unconditional by the national government. They are conditional grants and not conditional allocations. So, we thought that should be amended.

The Chairperson

(Sen. Kembi-Gitura)

: Does the Co-Chair wish to say anything?

(Title proposed)

The Chairperson (Sen. Kembi-Gitura) : Hon. Senators, this is again a matter that is affecting counties. So, when the time comes after the Division Bell is rung, we shall vote by counties.

I now put the Question that the Schedule as amended be part of the Bill, that Clause 2 as amended be part of the Bill, that the title be part of the Bill and Clause 1 be part of the Bill.

Since there is no debate, we will ring the Division Bell for eight minutes and then we proceed to vote.

Senators Muthama and Elachi, please, designate the tellers. Order, Senators! Order! Where is the teller for Ayes? Okay; we are now going to proceed on the next vote. We are going to proceed in the same manner, and the only thing I am going to request of you, colleagues, is that; we have three more votes to do – I think four – because after I have reported to the Speaker, we still have to put the question again. So, my request is this; that this is a very important Bill – all Bills are important – so, please be around. I have been asked to say that by the two whips.

Okay, now, we shall vote in the same manner. Now we have the Schedule, Clause 2, Title and Clause 1. You have them before you. So, we are voting in the same manner.

and, when Senators who wish to speak have spoken, the Chairperson shall put that question to the Committee for decision.”Mr. Chairman, Sir, so we cannot do it in an omnibus manner. We have got to do them sequentially and severally, in accordance with Standing Order No.134. That means that you can call each part sequentially, but severally without taking the vote, and then, vote at the end of calling each part, in the terms of Standing Order No.134, which already you have been doing.Mr. Chairman, Sir, I also wanted to point out that in the tradition of the House, normally each clause must be read for purposes of legislation. For it to go on record that each clause was actually enacted by Parliament or Senate, there should be a record that each clause was actually voted on by the House. I think that Sen. Judith Sijeny remembers when proceedings in the House were subjected to litigation in Arusha. The East African Court of Justice wanted to know what the decision of the House was on each clause and not the Bill as a whole. So, that may be the tradition of Parliament, but we do not have to stick with it.The Chairperson (

Teller of the Ayes:

Mr. Chairman, Sir, I was just saying that there is a tradition. That is why I was referring to these proceedings. But I agree that there is no rule which ties--- The Chairperson (

Sen. Orengo, what I wanted us to agree on is: Are we doing it the right way, by voting “yes” on Clause 4 and “yes” on Clause 5? Is that agreed?

Senators

Yes! The Chairperson (

Teller of the Ayes:

Mr. Chairman, Sir, the Clerk can help us. When I stand as the head of the delegation from Homa Bay, you can ask: “How do you vote on this?” I will say: “Yes” or “No”. You will then ask: “How do you vote on Clause 3?” I will say: “Yes” or “No”. This is because we may not know whether it is Clauses 4, 5 or 6. The Chairperson (

Okay. Actually we are in the Committee of the Whole and the rules are less stringent and that is why we are discussing freely. I have given guidelines, but we will adopt what Sen. Kajwang has said as the final position. That is the one that I would like to adopt. Let us go to the Roll Call. This has to do with Clauses 4, 5, 6 and 7. Clause 4

DIVISION ROLL CALL VOTING

Teller of the Ayes:

Teller of the Ayes:

Sen. Lesuuda. Teller of the Noes

Hon. Senators, the results for Clause 1 are as follows:

Hon. Senators, I wish to announce the results as follows.

AYES: 34 NOES: Nil ABSENTIONS: Nil

DIVISION ROLL CALL VOTING

Sen. Hassan. The Chairperson (Sen. Kembi-Gitura)

Teller of the Ayes:

Teller of the Ayes:

Sen. Lesuuda. Teller of the Noes

Hon. Senators, the results for the vote on the Title are as follows:

Hon. Senators, I wish to announce the results as follows.

AYES: 34 NOES: Nil ABSENTIONS: Nil

DIVISION ROLL CALL VOTING

Sen. Hassan The Chairperson (Sen. Kembi-Gitura)

County; Sen. Sang, Nandi County; Sen. Wako, Busia County and Sen. Wetangula, Bungoma County.

Teller of the Ayes:

Sen. Lesuuda. Teller of the Noes
Sen. Hassan. The Chairperson (Sen. Kembi-Gitura)

Mr. Chairman, Sir--- The Chairperson (Sen. Kembi-Gitura) : Maybe when you change the Standing Orders.

Ring the Division Bell. We are not in session, the bell is ringing.

The Chairperson (Sen. Kembi-Gitura) : Who are the tellers? Can I have the tellers for Ayes and for Noes, please?

(Loud consultations)

DIVISION ROLL CALL VOTING

Teller of the Ayes:

Sen. Lesuuda. Teller of the Noes

Sen. Hargura.

Hon. Senators, I wish to announce the results as follows.

AYES: 34 NOES: Nil ABSENTIONS: Nil

(Loud consultations)

Mr. Chairman, Sir, I rise again to move that the Bill be amended by deleting the Schedule and substituting thereof, the following new Schedule:-

SCHEDULE REVENUE ALLOCATIONS BETWEEN THE NATIONAL AND COUNTY GOVERNMENTS FOR 2013/2014 TYPE/LEVEL OF GOVERNMENT ALLOCATION REVENUE ALLOCATION PER CENTAGE OF LAST AUDITED REVENUE (KSHS.608.1 BILLION) Kenya Shillings % National Government Allocation 662,375,441,286 108.9

County Governments Allocation 258,000,000,000 42.4

Total Shareable Revenue 920,375,441,286 151.4

to amend the figures. The import of the amendment is that the shareable revenue that goes to the county governments will increase from Kshs190 billion provided for in the Bill, to Kshs238 billion. When we obtained the analysis prepared by the Parliamentary Budget Office and also based on presentations we received from the Chairman of the Council of Governors and from the public hearings that we conducted, it became very apparent that Kshs190 billion shared out across the 47 counties would be inadequate to cover the cost of the functions which have been devolved or which will be devolved, effective from 1st July. The effect of it again was very clear. Up to 18 counties will actually suffer a deficit of over Kshs28 billion. In other words, some of the counties will actually have deficits. We have examples; Nyeri County would have a deficit of up to Kshs3.5 billion if we were to share out Kshs190 billion across the 47 counties using that formula. What that means, therefore, is that, 18 counties would not be able to provide services or to pay for the services that have been devolved to the county governments. That would mean that we are actually going to set up the counties for failure. For that reason, it has been decided that indeed, after consultations; we have had sittings with the Treasury Secretary and it is our feeling that there is no way Kshs190 billion can sustain the counties and that is why we increased that figure by Kshs48 billion to bring it to Kshs238 billion.

Mr. Chairman, Sir, we have decided to leave the figure for conditional grants as it is in the Bill. The Kshs20 billion is a grant that is being given conditionally by the Treasury to some counties, specifically, Kshs3.2 billion or Kshs3.4 billion which will actually be money that will be used for the Level Five hospitals in some of the counties and the balance of slightly over Kshs16 billion is money that will be for donor funded projects that must continue to be financed by the national government. That is the basis for the amendment. This is an increase of Kshs48 billion. That would bring the county allocation to 42.4 per cent.

Again, it is clear that it is the Jubilee Government’s commitment; a pledge that has been made by this Government that it will raise the county allocation not at the minimum of 15 per cent but to 40 per cent--- This is a clear indication that 42.4 per cent is indeed higher than the 40 per cent we pledged.

Thank you.

Mr. Deputy Speaker, Sir, I beg to report that a Committee of the Whole has considered the Division of Revenue Bill, (National Assembly Bill No.1 of 2013) and approved the same with amendments.

What did Sen. Murkomen propose? Order, hon. Senators! What has happened has been reported to the Speaker. Sen. Billow Kerrow has moved that the Senate do agree with the Committee on the said Report.

I will now propose the question that the Schedule as proposed by the Co-Chairs form part of the Bill.(Question of the amendment proposed) Clause 2

Mr. Chairman, I beg to move

Mr. Chairman, Sir, I beg to move the Senate doth agree with the Committee in the said Report.

Sen. Wako seconded.

Hon. Senators, before I put the Question, I need to explain, once again, under Standing Order No.69, that this is a matter affecting counties. Therefore, the vote shall, again, be by delegations.

Does the Co-Chair wish to say anything? (Question, of the amendment proposed) (Title proposed) (Clause 1 proposed) The Chairperson (

Order, hon. Senators! I will decline that point of order and we shall proceed to Division. Ring the Division Bell.

Mr. Chairman, I beg to move

Shall we go on now? So, I am putting the question, that the Schedule, as amended by the Co-Chairs; Clause 2 as amended by the co-Chairs, the Title and Clause 1 of the Bill be part of the Bill. Schedule

DIVISION ROLL CALL VOTING

Teller of the Ayes:

Sen. Elachi Teller of the Noes

Teller for Ayes:

Hon. Senators, the results for the Schedule as amended by the Co-Chairs are in and are follows:-

AYES: 33 NOES: Nil ABSENTIONS: Nil

Sen. (Dr.) Khalwale The Chairperson (Sen. Kembi-Gitura)

Clause 2

DIVISION ROLL CALL VOTING

Teller of the Ayes:

Sen. Elachi Teller of the Noes
Sen. (Dr.) Khalwale The Chairperson (Sen. Kembi-Gitura)

Mr. Deputy Speaker, Sir, what we have done here today represents a significant step towards ensuring that devolution and the county system of government becomes a reality in the lives of Kenyans. I want to take this opportunity to thank the Committee on Finance, Commerce and Economic Affairs and the Committee on Devolved Government for an excellent job done. The various amendments that we have initiated here which have received the approval of the Senate have been excellent because as you realize, they have provided additional funds to the counties to enable them meet their mandate. It has been a tremendous and great day. I want to thank all the Senators for this excellent job.

Thank you.

AYES: 33 NOES: Nil ABSENTIONS: Nil

Sen. (Dr.) Khalwale The Chairperson (Sen. Kembi-Gitura)

Clause 1

DIVISION ROLL CALL VOTING

Teller of the Ayes:

Sen. Elachi Teller of the Noes
Sen. (Dr.) Khalwale The Chairperson (Sen. Kembi-Gitura)

It is not in my place to lock out Members. Sen. Wako!

AYES: 33 NOES: Nil ABSENTIONS: Nil

DIVISION ROLL CALL VOTING

Sen. (Dr.) Khalwale The Chairperson (Sen. Kembi-Gitura)

have increased, it will just be enough or slightly less than enough to keep the services going the way they were going in the local authorities. In the next Budget, we shall have the timelines for that. We shall go into everything and we may have to go for a big amount because of they are now counties.

Teller of the Ayes:

Sen. Elachi Teller of the Noes
Sen. (Dr.) Khalwale The Chairperson (Sen. Kembi-Gitura)

Can we have the tellers, please?

AYES: 33 NOES: Nil ABSENTIONS: Nil

Mr. Chairman, Sir, I beg to move that the Committee doth report to the Senate its consideration of The Division of Revenue Bill (National Assembly Bill No.1 of 2013) and its approval thereof with amendments. (Question proposed) The Chairperson (

Hon. Senators, I wish to announce the results as follows.

On a point of order, Mr. Chairman, Sir. In the interest of time, before you ring the bell, could you defer the vote until you read the next one then we vote at once because it is procedural.

Hon. Senators, next we will have the Motion for Adjournment. You will remember that we extended time, so that we sit until we complete the Business for today. The Motion has a maximum of two hours.

- That, pursuant to Standing Order 31 (1) , the Senate resolves to adjourn until Tuesday, 4th June, 2013.

The Senate has been sitting since we were sworn-in. I know that it is time, after this very important Debate and function that we have done today, to go back to the counties and give updates in terms of what is happening at the national level and what the Senate has done to protect and ensure that counties continue with their duties.

I know that we have had a very tough time, but I believe that the Senate has managed and handled itself with decorum. Kenyans are proud of what they are seeing in this House today. Therefore, I believe, as we adjourn that we will go out there to continue steering devolution and to ensure that it works in this country.

I beg to move. The Senate Minority Leader (Sen. Wetangula) : Mr. Deputy Speaker, Sir, I beg to second. This is engraved in the Calendar of the Senate, and indeed, the Calendar of Parliament. We have done a tremendous job given what we have passed this evening. The ingenuity of the two committees, the Committee for Devolution and the Committee for Finance, Commerce and Economic Affairs in going through the Revenue Allocation Bill and amending it the way we have done is something worth Senators going back to their counties to talk with the electorate. In seconding, I also want to note that we have just formed our committees which need induction. Induction cannot be done when the House is in session. This is, therefore, an opportunity for committee inductions to take place.

Thirdly and lastly, I wish each and every Senator, as they go back to their constituencies, to fraternise with the electorate and remember that they have a duty to guard devolution and to talk to their county representatives and even their Governors. They also have a duty to maintain the sobriety, dignity and admiration that we are enjoying from the public.

I beg to second.

Mr. Speaker, Sir, with your permission, I request to move an amendment to the Motion. I beg to move that the Motion be amended as follows:-

By deleting the word “4th” after the word “Tuesday” and inserting therein the word “11th.”

Maybe when you change the Standing Orders. Ring the Division Bell. We are not in session, the bell is ringing. (The Division Bell was rung) The Chairperson (

[The Deputy Speaker (Sen. Kembi-Gitura) left the Chair]
[The Temporary Speaker (Sen. Murkomen) took the Chair]
(Loud consultations)

Who are the tellers? Can I have the tellers for Ayes and for Noes, please?

(Loud consultations)

DIVISION ROLL CALL VOTING

Teller of the Ayes:

Sen. Elachi. Teller of the Noes

I put the Question?

Sen. Elachi. Teller of the Noes

Okay.

Resolved accordingly:-

THAT, pursuant to Standing Order No.31 (1) , the Senate resolves to adjourn until Tuesday, 11th June, 2013.

Hon. Senators, I wish to announce the results as follows:-

AYES: 31 NOES: Nil ABSENTIONS: Nil

[The Deputy Speaker (Sen. Kembi-Gitura) in the Chair]
The Deputy Speaker (Sen. Kembi-Gitura)

Order, hon. Members. The House is now back to a full session.

EXTENSION OF SITTING TIME UNDER STANDING ORDER NO.30(3)(A)

Mr. Deputy Speaker, Sir, I beg to move

- THAT, the Senate extends its Sitting Time today, Thursday, 23rd May, 2013, until the conclusion of Business appearing on the Supplementary Order Paper.

REPORT, CONSIDERATION OF REPORT AND THIRD READING THE DIVISION OF REVENUE BILL (NATIONAL ASSEMBLY BILL NO.1 OF 2013)

Mr. Deputy Speaker, Sir, I beg to report that a Committee of the Whole has considered the Division of Revenue Bill, (National Assembly Bill No.1 of 2013) and approved the same with amendments.

Mr. Deputy Speaker, Sir, I second. An hon. Senator: That has already been proposed.

The Deputy Speaker (Sen. Kembi-Gitura)

What did Sen. Murkomen propose? Order, hon. Senators! What has happened has been reported to the Speaker. Sen. Billow Kerrow has moved that the Senate do agree with the Committee on the said Report.

The Deputy Speaker (Sen. Kembi-Gitura)

A Report on what the Committee of the Whole has done has been reported to me. The Senator who sponsored the Bill who in this case is, Sen. Billow Kerrow, has moved that the Senate do agree with the said Report.

Let us do it in the right way so that we get done with it.

Mr. Chairman, Sir, I beg to move the Senate doth agree with the Committee in the said Report.

Sen. Wako seconded.

The Deputy Speaker (Sen. Kembi-Gitura)

Hon. Senators, before I put the Question, I need to explain, once again, under Standing Order No.69, that this is a matter affecting counties. Therefore, the vote shall, again, be by delegations.

On a point of order, Mr. Chairman, Sir. In view of the fact that we have just extended the time and there is another voting again when the Bill will be read the Third Time, would it be in order if I suggest that the Roll Call for this particular question that you have put be deferred, so that it comes together with the Third Reading?

The Deputy Speaker (Sen. Kembi-Gitura)

Order, hon. Senators! I will decline that point of order and we shall proceed to Division. Ring the Division Bell.

The Deputy Speaker (Sen. Kembi-Gitura)

Order Senators! Order Sen.

DIVISION ROLL CALL VOTING

The Deputy Speaker (Sen. Kembi-Gitura)

County; Sen. Orengo, Siaya County; Sen. Sang, Nandi County; Sen. Wako, Busia County and Sen. Wetangula, Bungoma County.

Teller for Ayes:

Sen. Elachi. Teller for Noes

Sen. Hassan.

The Deputy Speaker (Sen. Kembi-Gitura)

Hon. Senators, the results of the Division on the Question that the Senate do agree with the Committee on the report is as follows:-

AYES: 33 NOES: Nil ABSENTIONS: Nil

Mr. Deputy Speaker, Sir, I beg to move that the Division of Revenue Bill

be now read the Third Time.

The Deputy Speaker (Sen. Kembi-Gitura)

Who is seconding the Motion? Sen. Obure is seconding the Motion.

Mr. Deputy Speaker, Sir, what we have done here today represents a significant step towards ensuring that devolution and the county system of government becomes a reality in the lives of Kenyans. I want to take this opportunity to thank the Committee on Finance, Commerce and Economic Affairs and the Committee on Devolved Government for an excellent job done. The various amendments that we have initiated here which have received the approval of the Senate have been excellent because as you realize, they have provided additional funds to the counties to enable them meet their mandate. It has been a tremendous and great day. I want to thank all the Senators for this excellent job.

Thank you.

Hon. Senators

Put the Question!

The Deputy Speaker (Sen. Kembi-Gitura)

Sen. Musila.

Mr. Deputy Speaker, Sir, I know we are pressed for time, but I want to thank you for giving me this opportunity. I cannot miss the opportunity to congratulate the joint committees for the work that they have done. I particularly want to go on record and urge them that next time round, we do not want to hear this conditional funding. We want it to be scrapped, so that we will be allocating money properly without deductions being made.

I support.

Hon. Senators

Tosha! Tosha!

The Deputy Speaker (Sen. Kembi-Gitura)

It is not in my place to lock out Members. Sen. Wako!

Mr. Deputy Speaker, Sir, first of all, I just want to thank the joint committees for a job well done. But what we were told by the Chairman of the Council of Governors is that, even with the amount we have allocated today, and that is why we

have increased, it will just be enough or slightly less than enough to keep the services going the way they were going in the local authorities. In the next Budget, we shall have the timelines for that. We shall go into everything and we may have to go for a big amount because of they are now counties.

The Deputy Speaker (Sen. Kembi-Gitura)

Hon. Senators, seeing that there are no other Senators interested in contributing to the debate, I will put the Question. But before I do so, I want to remind you, once again, that this is a Bill to do with counties. Under Standing Order No.69, we shall, again, go to Division and vote by County Delegations.

The Deputy Speaker (Sen. Kembi-Gitura)

Can we have the tellers, please?

DIVISION ROLL CALL VOTING

Teller of the Ayes:

Sen. Elachi Teller of the Noes

Sen.(Dr.) Khalwale

The Deputy Speaker (Sen. Kembi-Gituraro)

Hon. Senators, I wish to announce the results as follows.

AYES: 32 NOES: Nil ABSENTIONS: Nil

MOTION FOR ADJOURNMENT UNDER STANDING ORDER NO.31(1) ADJOURNMENT TO A DAY OTHER THAN THE NEXT NORMAL SITTING DAY

The Deputy Speaker (Sen. Kembi-Gitura)

Hon. Senators, next we will have the Motion for Adjournment. You will remember that we extended time, so that we sit until we complete the Business for today. The Motion has a maximum of two hours.

Mr. Deputy Speaker, Sir, I beg to move

- That, pursuant to Standing Order 31 (1) , the Senate resolves to adjourn until Tuesday, 4th June, 2013. The Senate has been sitting since we were sworn-in. I know that it is time, after this very important Debate and function that we have done today, to go back to the counties and give updates in terms of what is happening at the national level and what the Senate has done to protect and ensure that counties continue with their duties. I know that we have had a very tough time, but I believe that the Senate has managed and handled itself with decorum. Kenyans are proud of what they are seeing in this House today. Therefore, I believe, as we adjourn that we will go out there to continue steering devolution and to ensure that it works in this country. I beg to move. The Senate Minority Leader (

Mr. Deputy Speaker, Sir, I beg to second. This is engraved in the Calendar of the Senate, and indeed, the Calendar of Parliament. We have done a tremendous job given what we have passed this evening. The ingenuity of the two committees, the Committee for Devolution and the Committee for Finance, Commerce and Economic Affairs in going through the Revenue Allocation Bill and amending it the way we have done is something worth Senators going back to their counties to talk with the electorate. In seconding, I also want to note that we have just formed our committees which need induction. Induction cannot be done when the House is in session. This is, therefore, an opportunity for committee inductions to take place. Thirdly and lastly, I wish each and every Senator, as they go back to their constituencies, to fraternise with the electorate and remember that they have a duty to guard devolution and to talk to their county representatives and even their Governors. They also have a duty to maintain the sobriety, dignity and admiration that we are enjoying from the public. I beg to second. (Question proposed)

Mr. Speaker, Sir, with your permission, I request to move an amendment to the Motion. I beg to move that the Motion be amended as follows:-

By deleting the word “4th” after the word “Tuesday” and inserting therein the word “11th.”

So that, in effect, what the Motion proposes to do is to extend the period of adjournment and recess with another one week.

Mr. Speaker, Sir, this Motion is informed by the fact that ever since we started our sittings, it is necessary – just as the Chief Whip, the Mover, has indicated – that we go back to the people and explain ourselves of the wonderful work we have done. But there is another component of our work which requires that we have a full week in which the Committees of the House – the Sessional and Standing Committees – can undertake some of the pending work, including inductions. We have discovered that the various Committees are competing for weekends to carry out their inductions. So, with this extra week, it is now going to be possible for the Committees to do their work and feed this into the general agenda of the Senate.

Therefore, Mr. Speaker, Sir, because I do not really need to say more than what I have said. I beg to move this amendment and ask Sen. Chiaba to second.

Sen. Chiaba seconded.

[The Deputy Speaker (Sen. Kembi-Gitura) left the Chair]
[The Temporary Speaker (Sen. Murkomen) took the Chair]
(Loud consultations)
The Temporary Speaker (Sen. Murkomen)

Order, hon. Senators!

Hon. Senators

Put the Question! Put the Question!

The Temporary Speaker (Sen. Murkomen)

I put the Question?

Hon. Senators

Yes, proceed and put the Question.

The Temporary Speaker (Sen. Murkomen)

Okay.

Resolved accordingly:-

THAT, pursuant to Standing Order No.31 (1) , the Senate resolves to adjourn until Tuesday, 11th June, 2013.

ADJOURNMENT

The Temporary Speaker (Sen. Murkomen)

Order, hon. Senators! It is now time for interruption of the Business of the Senate. The Senate is, therefore, adjourned to Tuesday, 11th June, 2013, at 2.30 p.m.

The Senate rose at 7.00 p.m.