Thursday, 9th April, 2015 Special Sitting

Hon. Senators, I have a short Communication to make.

Hon. Senators, I wish to welcome you from the Easter Holiday recess and thank you for finding time to attend this Special Sitting of the Senate. Having just commenced our very short recess during which time I am sure each one of you had scheduled major county events, I know it is because of the value you attach to the business of the Senate, especially the consideration of a key piece of legislation like the Division of Revenue Bill that you have created time to be here today.

Hon. Senators, you may recall that the Division of Revenue Bill (National Assembly Bill No. 11 of 2015) was read the First Time in the Senate on Wednesday, 1st April, 2015, and committed to the Standing Committee on Finance, Commerce and Budget for consideration.

Hon. Senators, for your information, Standing Order No. 160 (3) provides that; and I quote:-

“The Senate shall proceed upon and conclude its consideration of the Division of Revenue Bill not later than ten days after the Bill has been introduced with a view to approving it, with or without amendments.”

The ten day period lapses tomorrow.

Hon. Senators, by a letter dated 2nd April, 2015, and pursuant to Senate Standing Order No.29(1), the Senate Majority and Minority Leaders, supported by seventeen other Senators, requested the Speaker to appoint a day for a Special Sitting of the Senate to consider the Division of Revenue Bill (National Assembly Bill No.11 of 2015). Following consideration of the request by the two Senators, the Speaker was satisfied that it met the requirements of Standing Order No.29(2) and it is in this respect that the Speaker convened this Special Sitting of the Senate via Gazette Notice No.2323 of 7th April, 2015, which was carried in a special issue of the Gazette on the same day.

Hon. Senators, as required by Standing Order No.29(5), the notice specified that the business to be transacted at that sitting would be the consideration of the Division of Revenue Bill (National Assembly Bill No.11of 2015) as passed by the National Assembly without amendments on 25th March, 2015.

Hon. Senators, as specified in the Gazette Notice and in accordance with Standing Order No.29(5) of the Senate Standing Orders, the business specified in the Notice shall be the only business before the Senate during this Special Sitting following which the Senate shall stand adjourned until Tuesday, 28th April, 2015, at 2.30 p.m. in accordance with the Senate Calendar.

Indeed, hon. Senators will observe that Order Nos.3 and 4 in today’s Order Paper, pursuant to these provisions of the Standing Orders and as indicated in the Gazette Notice, the business to be transacted is the consideration of the Division of Revenue Bill (National Assembly Bill No.11 of 2015) at Second Reading and Committee of the Whole stages.

Therefore, it is noteworthy and I wish to emphasize that in accordance with Article 123 of the Constitution and Standing Order No.71 for the Senate to proceed to Standing Order No.4, this Bill must be passed by a majority of delegations at the Second Reading, Order No.3. The same requirement applies for business under Order No.4; Committee of the Whole. I, therefore, urge you all to remain in the Chamber for the transaction of this very important business.

I thank you, hon. Senators.

Mr. Deputy Speaker, Sir, I beg to lay the following Paper on the Table of the Senate today:-

Report of the Standing Committee on Finance, Commerce and Budget on the Division of Revenue Bill (National Assembly Bill No. 11 of 2015)

Next Order.

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

Sen. Obure, what can possibly be your point of order at this stage?

Mr. Deputy Speaker, Sir, I just want some guidance. I thank you for your guidance on the proceedings of today. I am sure the Chairperson is about to move this Bill; but the report of the Standing Committee on Finance, Commerce and Budget, which is supposed to be available to us, has not been availed. I believe that is what will be tabled here.

Secondly, the Commission on Revenue Allocation (CRA) is required to submit its recommendations to the Senate, National Assembly, the National Executive, county assemblies and the County Executives. I do not know whether this has been submitted, but I certainly do not have a copy myself---

Order, Senator! What are you referring to?

Mr. Deputy Speaker Sir, I am referring to Article 216 (5) of the Constitution which requires the CRA to submit its recommendations to us. I have not seen any copy and I am just wondering how I will be in a position to debate this Bill even before I see the Report of our own Standing Committee and before I receive a report of the various recommendations made by the CRA.

So, your point of order is twofold; one, on the report being availed to Members; and, two, on compliance or otherwise of Article 216 (5) . Am I correct?

That is correct, Mr. Deputy Speaker, Sir.

What are you asking me to do?

Mr. Deputy Speaker, Sir, I was just wondering if we, in this House, are in a position to debate the Bill which is about to be tabled and moved meaningfully if we have not been in possession of these documents.

Yes, I hear you. Now, regarding your first point, that would be the easier part because we can suspend the sitting for copies to be made available to you, if that is what you wish. I am sure you are aware that we must complete debate on this issue today. Again, that is the easier part because we can extend time until we are through with the debate on this issue and pass or fail to pass the Division of Revenue Bill. So, the first part is not difficult because we can suspend the

House for a little while, if that will be the wish of Members, so that the copies can be made.

Sen. Obure, are you a Member of the Committee?

Mr. Deputy Speaker Sir, I am not a Member of the Committee.

The Committee has worked very hard within certain timelines because it is only on 1st April, 2015, that I committed the Bill to the Committee chaired by Sen. Billow, for it to be considered, appreciating that it must be completed within 10 days, which end tomorrow, as I have said in my Communication from the Chair. Indeed, I have just approved the report for tabling this afternoon over lunch because the Committee was still working on it until very late because it is not a small issue. So, first of all, I would like to commend the Committee for working very hard to ensure that we have the report.

On a point of order, Mr. Deputy Speaker, Sir. The Bill itself, which is before the House, has been available to the Members from last week. The report of the Members which has copies of the Commission for Revenue Allocation (CRA) recommendations is really what we will be tabling. It is a Bill that focuses basically on

how much money should go to the counties. It is something that if we present, Members will be able to get the input in our report. The substance of the report is very brief on exactly whether or not we agree with the Bill. So, I would indulge the Members if they could allow it, because everyone needs to contribute and we need time. But, we will be able to present exactly what each of the parties has said about the figures.

Sen. Ndiema, why are you raising up your hand instead of inserting your card?

Please, go on.

Mr. Deputy Speaker, Sir, while I appreciate the work done by the relevant Committee, I think that for purposes of orderliness, because this is a serious matter, it would be very important that in exercises like this one, these matters are handled well in advance rather than to achieve everything---

Order, Sen. Ndiema! It is means that you are not listening to me. After I commended the Committee, I said that procedurally, you cannot make copies of a report that has not been tabled before the House. So, there is nothing wrong at all that the Committee has done in the circumstances. They have done everything they can. Like Sen. Billow said, we all had one week to read the report and the Bill itself, upon which the report is based. So, I do not wish to apportion any blame because there is none.

Mr. Deputy Speaker, Sir, I am not apportioning any blame. What I said is that in future, this report should be tabled well in advance.

Order, Sen. Ndiema! You appreciate that we are on recess. So, when could it have been tabled? We are here on a Special Sitting to debate this Report.

Mr. Deputy Speaker, Sir, we had a whole year to do it.

I think that is pushing it too far. I am sure that you appreciate that we only got this Bill last week from the National Assembly.

My screen is scrambled. Is there any other point of order? May I request that we reduce these points of order, so that we have enough time to debate the Bill and Report?

Please, proceed, Sen. Kagwe. You are a Member of the Committee. Are you not?

Mr. Deputy Speaker, Sir, as a Member of the Committee, I think that it is important for us to appreciate that we had very little time to deal with this because of other issues. The matter does not come to the Committee a year in advance. So, it is not possible for us to discuss it a year in advance. We can only discuss it at the time it is sent by the National Assembly to the Senate. I want to propose a way forward.

Please, take your seat, Sen. Wako.

Mr. Deputy Speaker, Sir, I want to propose a way forward, so that we do not dwell too much on whether or not to break. I propose that we take half-an-hour break after which everybody who wants to see the document will have seen and read it.

Sen. Khaniri, why are you standing up yet I have not called you out?

Please, proceed briefly, Sen. Khaniri.

On a point of order, Mr. Deputy Speaker, Sir. I join you in thanking the Committee for the good job done within the specified time. However, I want to propose to my colleagues that the business on the Order Paper today is the Division of Revenue Bill, which we have been seized of for the last three or four days. The report of the Committee can be treated like an amendment to whatever business that we are discussing. Therefore, it does not warrant us to break for 30 minutes. We can go through the Report as the Mover moves the Bill. By the time the Mover and Seconder are done, we will have gone through the Report.

On a point of order, Mr. Deputy Speaker, Sir. I join you in congratulating the Committee. I also note that we have had precedent before where some reports done by the committees, noting the work and the stakeholders that they have met, would be very good in guiding the House in terms of what direction we take in the discussion and debate of this Bill. I join Sen. Kagwe on the view that we have taken a break of one hour in other reports previously. However, since this is being brought in as an amendment, we can make it shorter and take 30 minutes. But going forward, I think it would be very important that we have the break to look at the report.

The Senate Minority Leader (Sen. Wetangula) : On a point of order, Mr. Deputy Speaker, Sir. I do not know what you are standing to rule on. But I want to propose that, one, we do not turn this House into a rubberstamp. We have to work. I suggest that we give Members 30 minutes to read through the document and before 6.30 p.m., we move a Motion to extend our sitting until we are through with the business of the House. This will ensure that we do not just run through the business as if it has come here to be rubberstamped and sent on for implementation.

Thank you, Senators. All of you have basically said what I had said; that we are going to suspend the sitting. I think it is reasonable that we suspend the sitting for 30 minutes, so that as the Report is taken through the Second Reading of the Bill, all of you can have a report to look at. I think that will be right thing to do.

Regarding extension of time, that will depend on you and how the debate through the Second and Third Reading will go.

I direct that the House remains suspended for 30 minutes. We shall come back at

On a point of order, Mr. Deputy Speaker, Sir. I do not know what you are standing to rule on. But I want to propose that, one, we do not turn this House into a rubberstamp. We have to work. I suggest that we give Members 30 minutes to read through the document and before 6.30 p.m., we move a Motion to extend our sitting until we are through with the business of the House. This will ensure that we do not just run through the business as if it has come here to be rubberstamped and sent on for implementation.

Thank you, Senators. All of you have basically said what I had said; that we are going to suspend the sitting. I think it is reasonable that we suspend the sitting for 30 minutes, so that as the Report is taken through the Second Reading of the Bill, all of you can have a report to look at. I think that will be right thing to do.

Regarding extension of time, that will depend on you and how the debate through the Second and Third Reading will go.

I direct that the House remains suspended for 30 minutes. We shall come back at

All right; I believe we can proceed now. Can you call the orders, please, so that we can proceed?

Where is the Senate Majority Leader? Sen. Billow, are you the one moving the Bill? Can you proceed?

Thank you, Mr. Deputy Speaker, Sir. I beg to move that the Division of Revenue Bill be read a Second Time.

Mr. Deputy Speaker, Sir, Article 124 of the Constitution of Kenya provides for the establishment of our Committee of Finance, Commerce and Budget, which has looked at this Bill because it is part of our mandate. I want to take the Members through it.

Mr. Deputy Speaker, Sir, the Division of Revenue Bill (National Assembly Bill No. 11 of 2015) was passed by the National Assembly on Wednesday, 25th March, 2015. The same was communicated to us; it was forwarded to our Committee and we looked at it. The Bill provides for the division of the nationally raised revenue between two levels of Government. The Bill itself is accompanied by a memorandum, which is an explanation of the revenue allocation. Article 218 of the Constitution also requires that we use the criteria provided for there. It also requires that we provide a summary of any significant deviation from the recommendations by the Commission for Revenue Allocation (CRA) . So, the Bill has got a memorandum explaining all that.

Mr. Deputy Speaker, Sir, pursuant to Article 118 of the Constitution and Senate Standing Order No.130, our Committee considered the Bill; we invited key stakeholders, including the national Treasury, the Council of Governors (CoGs) , the CRA, the County Assemblies Forum (CAF) , the Controller of Budget and other members of the public, including non-state actors. In that regard, we facilitated public participation and took into account their views and recommendations in our Report to the Senate.

Mr. Deputy Speaker, Sir, I would like to remind hon. Senators that the enactment of this Bill is critical because it sets the stage for the preparation of the County Allocation of Revenue Bill, which will inform the preparation of the respective county budgets. Counties must do their budgets by the end of this month. So, we have very strict timelines and a very tight schedule. So, we are also submitting the Report of this Committee for the consideration and approval of the Members.

Order, Members! Order! The

Order, Members! Order! The

So, in Section 6, the Bill looks at the mechanisms for resolution of any dispute which, again, the objective is to avoid wasteful expenditure by going to court instead of pursuing the provisions of the alternative mechanisms provided in Article 189 of the Constitution.

Mr. Deputy Speaker, Sir, the most important part of the Bill is the Schedule, which is on page 6 of the Bill. Page 6 of the Bill shows Schedule (s.4) , the allocation of revenue raised nationally between the national and county governments for the Financial Year 2015/2016, with three columns. There is a column on the level or type of allocation; the second column is on the amounts and then the percentages. So, I want to seek your indulgence to take hon. Members through this, because we appreciate that it is very important that you get it.

The total allocation to the national Government is Kshs978.692 billion, which includes the free maternal healthcare of Kshs4.2 bilion, leasing of medical equipment of Kshs4.5 billion, it also includes Kshs2 billion for Level 5 hospitals and healthcare facilities compensation. We also have equalization fund which is Kshs6 billion because it is taking into account the arrears for the previous year. The county equitable share, which is the shareable allocation of revenue for the counties, is Kshs258 billion. The total sharable amountsof revenue for both levels of government comes to Kshs1.142 trillion. Out of that, the allocation for the counties is in the next part.

The equitable share that the Bill recommends is Kshs258.008 billion. The Bill proposes the following conditional allocation:-

Level 5 hospital not Level 3.

Sorry, Level 5 and not Level 3.

and a number of counties with those hospitals that are finding it very difficult to run. The Ministry is proposing, as some Members may be aware, to re-classify some of the hospitals into national referral hospitals. I think going forward, that is the plan they are looking at so that they are funded and maintained. They also think that some of them should be upgraded.

Then we have a conditional grant of Kshs900 million to compensate county health facilities on the foregone user fees. This is to sustain the Government policy of not charging user fees in public health facilities. We have a conditional grant for road maintenance levy of Kshs3.3 billion. This conditional grant is to enhance county government capacity to repair and maintain county roads. It is the 15 per cent of the road maintenance levy which will be transferred to the county governments.

Mr. Deputy Speaker, Sir, we also had a conditional grant in the Bill of Kshs1.4 billion.This is a grant from the Government of Denmark and a loan from World Bank. These funds are intended to support the delivery of health services in county health facilities. When we come to the county allocation, we will look at the details per county that is where the allocation of each county will come in. Here, we are discussing the general figures of each counties but in the County Allocation of Revenue Bill, we will go into details of what goes to which county and how much.

Then there is the conditional allocation financed by other loans and grants received from devolvement partners amounting to Kshs9.3 billion. These allocations relate to loans and grants contracted prior to the establishment of the county governments. So there are ongoing projects and therefore the existing financing agreements guide the structures and management framework of all those programmes and projects.

Those are the figures in this Bill. The equitable share for the next financial year, as I have explained, was built up from last year’s base of Kshs226 billion to arrive at Kshs258,008,000,000. The key component there is the revenue growth of Kshs23 billion. The second key item is the Kshs4.5 billion for salaries. That is how the Kshs258,008,000,000 is built up. The conditional allocation of Kshs25 billion comprises of maternity, general healthcare, lease of medical equipment and Level 5 hospitals, among other items. That is what is proposed. In discussing this Bill, we had an opportunity to sit with the Treasury to discuss why they are proposing these figures. We had a lot of discussions on each of these items. The minutes of this Committee provide for all that.

Page 15 of the Bill, Table 2, provides a basis for sharing our revenue between the national and county governments in accordance with Article 203 of the Constitution. Article 203 is very important to Members because it determines the criteria to be used. One of the criteria, for instance, is the national interest, public debt and so forth. For instance, if you look at Table 2 on page 15, you will see that the first row is on ordinary revenue for 2015/2016 which is Kshs1.2 trillion. That is what they expect to collect in the next financial year.

Under “b”, the national interest under Article 203, is defined according to the Government after looking at those items; for example, enhancement of security operations. There is need to invest more in security. They are looking at getting more

police vehicles like helicopters and items for security defence, among other things. An additional amount of Kshs18 billion will go into enhancement of security operations. National Irrigation and fertilizer clearance will take an additional Kshs12 billion to take care of food security which is a critical component.

There is the reengineering of the National Youth Service (NYS) where the Government will take on board tens of thousands of youth to train and employ them. An additional Kshs11 billion will be put there. The National Social Safety Net Fund takes care of the vulnerable in the society. The money has been there every year. The total is Kshs12.8 billion and this includes urban food subsidy for those in the slums and for all other categories. This one is disbursed through the Ministry of Labour and Social Services. We also have money for laptops for the schools at Kshs17.5 billion.

We have in item “c”, the Public Debt of Kshs362 billion. This concerns servicing of national loans. In item “d”, other national obligations that must be taken into account include the pensions, constitutional salaries and so forth. That comes to Kshs54.6 billion. We also have the constitutional commissions. The largest is the Teachers Service Commission (TSC). We also have the Commission on Revenue Allocation (CRA), Commission for the Implementation of the Constitution (CIC), Salaries and Remuneration Commission (SRC), Inter-governmental Budget and Economic Council (IBEC) and so forth. These are all constitutional commissions and have been allocated Kshs179 billion. Out of Kshs179 billion, the TSC takes Kshs160 billion. We also have Parliament.

We also have other constitutional offices. For example, the Attorney General’s office, the Director of Public Prosecution (DPP’s) and so forth at Kshs6 billion. We have other statutory bodies like the Ethics and Anti-Corruption Commission at Kshs4.7 billion. We also have other national funds like the CDF, Uwezo Fund, among others, at Kshs37 billion. We have provision for emergency which includes contingencies and strategic grain reserve at Kshs7.9 billion. The Equalisation Fund is about Kshs6 billion. Once you remove all that from the Kshs1.2 trillion which is the resource envelop, you are left with Kshs477 billion to be shared between the national and the county governments from the national revenue. This is collectable in the next financial year. So, out of Kshs477 billion, it is proposed that Kshs283,741,685,204 goes to county governments.

The Kshs283,741,685,204, the Kshs25,733,685,204 Conditional Fund plus the Kshs258,008,000,000 equitable shares is what will go to the counties. So, the balance available for the national Government will come to Kshs193 billion only as a matter of fact for the entire 18 Ministries of the Government. That is what remains. The rest of the money has to be looked for through borrowing and grants from other institutions. That is basically a brief of what is on the table. I thought going through the table was important so that Members appreciate how we arrived at these figures.

We also received representation from the CRA. Article 205 of the Constitution, I will read it briefly; provides that:

“When a Bill that includes provisions dealing with the sharing of revenue, or any financial matters concerning county governments is published, the Commission on Revenue Allocation shall consider those provisions and may make recommendations to the National Assembly and the Senate.”

reduction of county equitable share during the scrutiny and approval of the Budget Policy Statement, the Committee proposes as follows:

Those are the three recommendations that we feel will lead to an amendment at the Committee Stage.

Where will the money come from? We looked at that and we proposed a couple of areas where this money will come from. First, we proposed that in the national interest on the Bill which provides for national irrigation and fertilizer clearance, it provides for Kshs12.5 billion to the national Government. We have said that agriculture is a devolved function and a lot of counties are doing their own irrigation schemes, looking at the possibility of getting fertilizer for their own farmers, et cetera.

So, there are challenges associated with this area of utilizing the entire provision of Kshs12.5 billion and we resolved to take Kshs2.5 billion from that allocation so that the national irrigation on page 15 of Table 2 of the Bill will come down to Kshs10 billion instead of Kshs12.5 billion. We said that the Kshs2.5 billion can be obtained from that.

Mr. Deputy Speaker, Sir, the second area we looked at is on the emergencies. On Row No. (e) on the same Table 2, they had provided for Kshs7.9 billion for emergencies. These emergencies is Kshs5 billion for contingencies and Kshs2.9 billion for the Strategic Grain Reserve. We did not touch the Strategic Grain Reserve, but on the contingencies of the national Government of Kshs5 billion, we shared it out equally so that we gave Kshs2.5 billion to the counties and retained Kshs2.5 billion for the national Government.

It is becoming apparent, especially in the Arid and Semi-arid areas (ASAL) when there is drought, the Government is increasingly asking those counties to bear the bill of buying relief food and other things for the affected people. So, we also took from there Kshs2.5 billion. The total adjustment that we are proposing is Kshs7.7 billion and so the remaining Kshs2.7 billion will be deducted from the balance available from the national Government needs.

The total equitable share, if our proposed amendments are approved by this House during the Committee of the Whole will come to Kshs259.7 billion which represents 33 per cent of the audited revenue for 2012/2013. The conditional grants will increase from Kshs25 billion to Kshs30.1 billion because of the additional increase of Level 5 hospitals to Kshs3,600,480 and also the County Emergency Funds of Kshs4.4 billion. That will bring the total; both equitable and conditional share to Kshs291,444,185,204. This is on the table on page eight and nine of your Report. You will find the total County Allocation will come to Kshs291,444,185,204. That will come to 37 per cent of the total. That is what we have proposed.

Mr. Deputy Speaker, Sir, it is the feeling of the Members of the Committee on Finance, Commerce and Budget that we make the necessary adjustments. The import is very clear; that any adjustments or amendments to this Bill will lead to mediation between the two Houses of Parliament. That notwithstanding, that was the proposal by Members. We urge Members to critically look at that.

Mr. Deputy Speaker, Sir, lastly, if the Kshs291,444,185,204 will be passed, there will be substantial amount of money that will go to the counties. The Senate has always made it very clear, in the two years that we have looked at and enacted the Division of Revenue Bill, that it has been the intention of the Senate to provide for adequate funding

Those are the three recommendations that we feel will lead to an amendment at the Committee Stage.

Where will the money come from? We looked at that and we proposed a couple of areas where this money will come from. First, we proposed that in the national interest on the Bill which provides for national irrigation and fertilizer clearance, it provides for Kshs12.5 billion to the national Government. We have said that agriculture is a devolved function and a lot of counties are doing their own irrigation schemes, looking at the possibility of getting fertilizer for their own farmers, et cetera.

So, there are challenges associated with this area of utilizing the entire provision of Kshs12.5 billion and we resolved to take Kshs2.5 billion from that allocation so that the national irrigation on page 15 of Table 2 of the Bill will come down to Kshs10 billion instead of Kshs12.5 billion. We said that the Kshs2.5 billion can be obtained from that.

Mr. Deputy Speaker, Sir, the second area we looked at is on the emergencies. On Row No. (e) on the same Table 2, they had provided for Kshs7.9 billion for emergencies. These emergencies is Kshs5 billion for contingencies and Kshs2.9 billion for the Strategic Grain Reserve. We did not touch the Strategic Grain Reserve, but on the contingencies of the national Government of Kshs5 billion, we shared it out equally so that we gave Kshs2.5 billion to the counties and retained Kshs2.5 billion for the national Government.

It is becoming apparent, especially in the Arid and Semi-arid areas (ASAL) when there is drought, the Government is increasingly asking those counties to bear the bill of buying relief food and other things for the affected people. So, we also took from there Kshs2.5 billion. The total adjustment that we are proposing is Kshs7.7 billion and so the remaining Kshs2.7 billion will be deducted from the balance available from the national Government needs.

The total equitable share, if our proposed amendments are approved by this House during the Committee of the Whole will come to Kshs259.7 billion which represents 33 per cent of the audited revenue for 2012/2013. The conditional grants will increase from Kshs25 billion to Kshs30.1 billion because of the additional increase of Level 5 hospitals to Kshs3,600,480 and also the County Emergency Funds of Kshs4.4 billion. That will bring the total; both equitable and conditional share to Kshs291,444,185,204. This is on the table on page eight and nine of your Report. You will find the total County Allocation will come to Kshs291,444,185,204. That will come to 37 per cent of the total. That is what we have proposed.

Mr. Deputy Speaker, Sir, it is the feeling of the Members of the Committee on Finance, Commerce and Budget that we make the necessary adjustments. The import is very clear; that any adjustments or amendments to this Bill will lead to mediation between the two Houses of Parliament. That notwithstanding, that was the proposal by Members. We urge Members to critically look at that.

Mr. Deputy Speaker, Sir, lastly, if the Kshs291,444,185,204 will be passed, there will be substantial amount of money that will go to the counties. The Senate has always made it very clear, in the two years that we have looked at and enacted the Division of Revenue Bill, that it has been the intention of the Senate to provide for adequate funding

to county governments so that we get improvement in service delivery, maintenance of our institutions and also get adequate money for development.

In the reports by the Controller of Budget last year up to now, we have seen that some counties have had very little money left for development because of the overheads, cost of maintenance, salaries and so forth. For example, whatever we gave to counties like Nairobi County is exactly equal to its 103 per cent of its remuneration. Their total personnel emoluments is actually equal to what we allocate, for instance. It is important that we give adequate money so that these institutions can run.

Secondly, there is local revenue that is generated by county governments. There has been concern in all reports by the Controller of Budget that county governments have been very inefficient in collecting revenue. In many of the big counties, we have not seen any significant growth. In fact, in some counties, we have seen a decline in collection of revenue. Concerns have been expressed in the many reports that have been issued by the Controller of Budget, the Auditor-General or other institutions that there is a serious problem of accountability for funds, particularly of local revenue that is collected.

We want to put county governments on notice because the law is very clear. All the money collected must be kept into the county revenue fund so that it can be accounted for and appropriated in accordance with the law and the Public Financial Management (PFM) Act.

Mr. Deputy Speaker, Sir, we need to make it very clear to county governments that there is a tendency of corruption within county governments. We saw the report recently. In the President’s Speech, up to 13 county governors were cited to be corrupt. There were allegations of corruption in 13 counties. However, more importantly, more than 30 counties were mentioned in the Report. So, it is a matter of concern that barely two years into devolution - we will be celebrating two years of devolution next month when the Annual Devolution Conference will be held in Kisumu - there are concerns that billions of shillings are probably being lost through corruption. This is a matter that, as Senate, we need to be concerned about. This is a matter that should encourage us to come up with appropriate laws and regulations to tighten the control of money in county governments.

Mr. Deputy Speaker, Sir, without taking any more time, I urge Members to support the Bill and the proposed amendments. I thank the Office of the Speaker, the Clerk, all Members who have assisted us and some Members of my Committee who worked tirelessly over the last one week to get this Report.

We have particularly been very hard on institutions like the Commission on Revenue Allocation (CRA) where we demanded that they carry out their functions as required by the Constitution; that they be independent and give advice so that the Senate gets their recommendations and determines what to do.

That is what I had. I do not want to take any more time and I beg to move and ask the Senator for Kakamega County; Sen. (Dr.) Khalwale, to second the Bill.

Mr. Deputy Speaker, Sir, I rise to second this very important Bill. As I do so, allow me to thank the Chairman of the Committee on Finance, Commerce and Budget for allowing me to second such an important Bill in this House.

Equally, allow me to thank the Senate Minority Leader whose responsibility was to do what I am doing but he has allowed me to do it on his behalf.

I associate myself with all the statements that have been made by the Chairman of the Committee on Finance, Commerce and Budget; and Senator for Mandera. So that I am not repetitive, I intend to support the Bill by just pointing out to Members the salient issues that we must remain alive to as we pass this Bill.

Mr. Deputy Speaker, Sir, the first salient point, which the House needs to know, is that the CRA was not in agreement with the National Treasury or the IBEC in the figure that is presented before you. Our lead consultant under the Constitution is the CRA. It is the CRA which, in quotes, “would appear like should bind us,” because, indeed, they are our consultants. Therefore, we should start by expressing our disappointment that the Chairman of the Commission, Commissisoner Cheserem, has allowed himself to use the IBEC as his first port of call. That should not be the case. We encourage him that before he goes to the IBEC, he should pass through us so that he is enriched by our stand that we will agree with him or we will ask for more.

Mr. Deputy Speaker, Sir, the second point is that the figure of Kshs775,845,000,000 by the CRA is the equitable share which is based on the total sharable revenue. Members should remember that the revenue that we share is based on the last audited accounts approved by the National Assembly. These are the accounts of 2012/2013 Financial Year. We demand that the National Assembly Public Accounts Committee must do its work. We are losing out to the counties because ideally, we should have based our sharing on the audited accounts of the Financial Year 2013/2014.

Mr. Deputy Speaker, Sir, the revenue being collected is Kshs1.3 trillion and because of the National Assembly not being up to date in approving accounts, we are losing out. The counties would have got far much more.

The third point which I would like to talk about is the fact that the Chairman has confirmed to us that we have not agreed with the National Assembly. The figure given by the National Assembly and agreed together with Inter-Government Budget and Economic Council (IBEC) is Kshs253.5 billion. As a Committee, we have disagreed. We are saying that if we adopt this figure, we will paralyze critical functions in the counties. Therefore, we are leading this House in disagreeing with the National Assembly figure. We would like this House to support our amendment, which is that, it should move to Kshs259 billion for the following reasons:-

If you do not increase this amount to Kshs259 billion, it means that the conditional allocation that is meant to go to Level 5 hospitals would be Kshs2 billion only. This is completely inadequate. We are therefore saying if you support this amendment, it will move from Kshs2 billion to Kshs3.6 billion. This will go a long way in sorting out the challenges in Level 5 hospitals.

The second reasons why we would like the House to agree with us as a Committee that this figure be varied upwards is because of something called establishment of county emergency. We all know that when emergencies take place, they do not do so in the office of the national Treasury or the Office of the President; emergencies occur in the counties. The current practice where an emergency occurres in a county and the governor is reduced to only begging and drawing the attention of the

equivalent to Kshs223 billion. So, allow the governors to do an outright direct purchase and allow them to enjoy service contract which will cost them only Kshs223 billion but in the contract being signed by the Government, this job of Private-Public Partnership (PPP) is costing Kshs808 billion, a difference of a whopping Kshs585 million.

This means that if we gave out this money as conditional grants to the county governments, in total, the governors would spend Kshs10 billion but because of PPP, we are spending Kshs31 billion. The question is; since the Kshs10 billion takes care of the purchase of equipment together with service contract, who is pocketing the difference of Kshs21 billion? These are the clever guys at the national Treasury, who hide the devil in the detail of figures, we pass them as parliamentarians and they go home laughing all the way to the bank.

Mr. Deputy Speaker, Sir, this is corruption and our President today is leading is in fighting corruption. So, we want him to listen to us and direct PS Thugge and Cabinet Secretary Rotich to ensure that if it is the Ministry of Health whose mandarins want to walk away with Kshs21 billion, they be stopped because we have pointed that that out.

Finally, I want to appeal to the governors that when they sign the contracts for these equipments, they be alert. According to a report by the Committee on Health of the National Assembly Committee which pursued this matter, they have established that out of the seven contracts, only five have been signed, that is, theatre, radiology, Renal Unit and the Intensive Care Unit (ICU). What are the contracts that have not been signed? There are two critical contracts called Category 1 and Category 2 laboratory contracts.

Distinguished Senators, if you do not stop your governors from accepting that equipment without signing all the seven contracts, the consequence is that you are going to have an ICU and Renal Unit which are well equipped but cannot function because to run it you need laboratory backup, and those contracts have not been signed. It is going to be a disaster and those units will not function.

Mr. Deputy Speaker, Sir, I beg to second and urge Members to support our amendment.

equivalent to Kshs223 billion. So, allow the governors to do an outright direct purchase and allow them to enjoy service contract which will cost them only Kshs223 billion but in the contract being signed by the Government, this job of Private-Public Partnership (PPP) is costing Kshs808 billion, a difference of a whopping Kshs585 million.

This means that if we gave out this money as conditional grants to the county governments, in total, the governors would spend Kshs10 billion but because of PPP, we are spending Kshs31 billion. The question is; since the Kshs10 billion takes care of the purchase of equipment together with service contract, who is pocketing the difference of Kshs21 billion? These are the clever guys at the national Treasury, who hide the devil in the detail of figures, we pass them as parliamentarians and they go home laughing all the way to the bank.

Mr. Deputy Speaker, Sir, this is corruption and our President today is leading is in fighting corruption. So, we want him to listen to us and direct PS Thugge and Cabinet Secretary Rotich to ensure that if it is the Ministry of Health whose mandarins want to walk away with Kshs21 billion, they be stopped because we have pointed that that out.

Finally, I want to appeal to the governors that when they sign the contracts for these equipments, they be alert. According to a report by the Committee on Health of the National Assembly Committee which pursued this matter, they have established that out of the seven contracts, only five have been signed, that is, theatre, radiology, Renal Unit and the Intensive Care Unit (ICU). What are the contracts that have not been signed? There are two critical contracts called Category 1 and Category 2 laboratory contracts.

Distinguished Senators, if you do not stop your governors from accepting that equipment without signing all the seven contracts, the consequence is that you are going to have an ICU and Renal Unit which are well equipped but cannot function because to run it you need laboratory backup, and those contracts have not been signed. It is going to be a disaster and those units will not function.

Mr. Deputy Speaker, Sir, I beg to second and urge Members to support our amendment.

There is a lot of interest on this issue, as indicated on the screen. So, I may have to reduce the time to speak in due course.

Mr. Deputy Speaker, Sir, I rise to support this Bill. In doing so, I would like to thank both the Chairman and the Seconder of the Bill for highlighting resilient and important features.

Mr. Deputy Speaker, Sir, from the outset, I would like to highlight one or two things. The first one has to do with the fact that as a Committee, we have fought substantially to see that the amount that is being discussed goes up. However, the enemies of devolution today are not this House or the National Assembly, but corruption at the county level. They are nepotism and serious conflicts of interest in business within the county governments. We will increase wastage of resources, no matter how much we give here, unless we can increase the oversight capabilities of both the county assemblies

and this House. Therefore, let us allocate the money, but also ensure that the money that was allocated by the National Assembly to this House – the Kshs1 billion – to increase our oversight is not tampered with for any reason and by anybody. I think that should be made very clear.

Mr. Deputy Speaker, Sir, secondly, as a House, we also need to ensure that we continue to support and speak to our county assemblies, so that we can emphasise the need for them to be more vigilant in managing the resources, oversighting and serious participation in the budget process of our counties. I think it is important for us to appreciate the three items that we touched on.

First, there is the issue of emergencies. This was after a very serious consultation and discussion. Right now, we have emergencies in places that are flooding. For example, when there is flooding in Budalangi, we must empower the county government to respond instantly and immediately. County governments are more accountable to the county citizens when there is an emergency and no response is taken. The second dimension is that the county governments will have no excuse why people should be suffering on the ground, when they have got some money that can immediately be deployed to resolve those problems.

When it comes to Level Five hospitals, I think it is important for the Senators to appreciate that the costing that was done by the Treasury was over Kshs10 billion. The amount of money that was originally given in the National Assembly was then split amongst the 47 counties, which made nonsense of the whole idea of conditional allocation for Level 5 hospitals because, essentially, what that means is that some of money for Kisumu Hospital, for example, went to the neighbouring county, which then brought their people for treatment in Kisumu, Nyeri, Kakamega, Kisii and so on. But we are alive to this and it is important for us to point out a factor in it.

If you look at page 6 of the Bill, you will find that within the national Government allocation figures, there is a figure for Level 5 hospitals of Kshs2 billion. If you go down and look at county allocation, there is another figure of Kshs2 billion. This means in effect that the actual allocation is Kshs4 billion. It is important for us to point out this even as we discuss it, because last year when we negotiated – and we were involved in the dispute resolution with Sen. Elachi and Sen. Mutula Kilonzo Jnr. – we agreed that we would split the cost that was demanded then; Kshs3.6 billion.

So, in real terms we are saying that we want some Kshs3.6 billion conditional allocation by the national Government directly into the counties. However, it also implies that there will be another Kshs3.6 billion from the national Government allocation; the matching fund that we have operated on since we negotiated the Kshs1.8 billion. I think we need to understand that and this message should be very clear to the Treasury, so that they do not say that we are asking for Kshs3.6 billion in total. Their matching fund is still required at the same level as the allocation for the county governments.

Mr. Deputy Speaker, Sir, the other thing to remember is that we passed a Bill in this House that 40 per cent of the amounts to be spent in the counties are going to be used for development. It can be a Bill or Act in futility if we do not have sufficient funds to allow for the 40 per cent. There is no need of telling a county like Nyeri, which is in deficit, that you are going to allow 40 per cent for development, when they do not even

have enough to meet recurrent expenditure, let alone development matters. Therefore, one of the reasons we raised this amount to the level that we are proposing is to ensure that the Bill that was passed by this House can take effect at the county governments’ level.

Mr. Deputy Speaker, Sir, I want to thank the National Assembly. For once, the National Assembly cooperated to a large extent on the determination of this position that we are currently in. I want to commend the Chairman for using very many methods to create harmony within the negotiations in the budget process. We are aware that Sen. Billow met many times with the Chairman of the Budget Committee of the National Assembly and agreed on many aspects. I am aware that our Chairman has continued to engage his counterpart in the National Assembly, including today, as we were negotiating this amount. Therefore, we also want to appeal to the National Assembly to see the sense in what we are trying to do here. They should understand that we do not just want to get some Kshs7 billion.

Finally, if you look at the amounts that we have asked for, on two items, we are asking for conditional grants. These are amounts that are going to be given to counties only on the grounds that they will be used for purposes for which they are set.

Mr. Deputy Speaker, Sir, the oversight related to those particular aspects is a lot higher than would otherwise be the case. This means that it is in the interest of the national Government to follow through and ensure that the money for the Level 5 Hospitals and emergency funds are only used for intended purposes and cannot be diverted into other uses. Therefore, it is important that we, as Senators, advise our counties that in the event they use money that is supposed to be conditional, say for a specific cause or function; it is recoverable by the national Government. It is important for us to point this out to the county assemblies so that at no time will that money be diverted to other aspects.

Mr. Deputy Speaker, Sir, it is also important for us to point out that a mistake was made last year when somebody said that if you do not finish the money allocated to the counties by 30th June of the year, it will then be taken back to the national Treasury. It is high time civic education took place in the country, especially in the county governments to sensitize them that once money has been allocated to a county government, it can never be taken back to the national Treasury. Many people do not seem to be alive to that fact. It is the county Treasury that maintains that money, whether it is used or not. However, the fact remains that the money belongs to the county government and can never revert back to the national Treasury.

Once again, Mr. Deputy Speaker, Sir, I want to thank the Chairperson and, indeed, the Committee for their hard work and support. I want to appeal to my fellow Senators to support this Bill so that we can finish it quickly and avoid extending time beyond 6.30 p.m.

Thank you, Mr. Deputy Speaker, Sir.

Order, Senators! I have 15 requests on the screen and each of you has 15 minutes to contribute. If you multiply that, it comes to 225 minutes. This is equal to 3.75 hours or almost four hours. You realize the fact that we do not have four hours remaining. If I give you 10 minutes each, that will translate to 150 minutes, which is about 2.5 hours. I think each of you would like to contribute. Therefore, I am proposing each Member to contribute for 10 minutes. But in fairness---

Five minutes!

Okay; let us look at this. Does that sound equitable?

Okay; let us look at this. Does that sound equitable?

Yes.

Yes.

Okay, let us be fair to each other; if we can do two minutes, five minutes or whatever number of minutes, it would be very good, indeed. However, it is too early to curtail you to five minutes.

Proceed, Sen. Musila; you have 10 minutes.

Thank you, Mr. Deputy Speaker, Sir. I stand to support this Bill. Once again, we are here drumming support for our counties to get more revenue. I want

to agree with the Senator for Nyeri about the need for us to ensure that the revenue that we fight for so hard to go to counties is properly utilized.

Mr. Deputy Speaker, Sir, in this Bill, I agree with the Chairperson who very efficiently delivered his speech, that there is a trend which is developing within the national Government to take a lot of money to the centre and deprive counties. For example, the money being given to the National Youth Service (NYS) and the Ministry of Devolution is a lot. This has been happening prior to devolution, where money was put in the centre and certain people used it to develop certain areas. So, in order to have equity in development, particularly in activities being run by the NYS, it will only be fair that this money is send to counties.

Mr. Deputy Speaker, Sir, on the issue of health, I do not know about other counties; but in my own county – and I believe it is also true with other counties – health services have deteriorated greatly. In the past, when the national Government was running health services, it was difficult to find drugs missing in dispensaries and health centres. But today, some dispensaries have been shut down because of lack of personnel or drugs. Therefore, the issue of health services must be looked at very diligently in order to give sufficient funds for health services. That is why I support the proposal by the Committee to increase the amount being given for health services.

Mr. Deputy Speaker, Sir, we have been singing about Level 5 Hospitals; what about those counties which do not have these hospitals? The nearest Level 5 Hospital to Kitui County is Machakos and Embu. However, the service that we get in those hospitals is enough for us. We passed a resolution through a Motion in this House requiring that we should have Level 5 Hospitals in all counties in order to have equity in terms of health services.

Therefore, I would like the national Government to go further than simply allocating little money here and there, for Level 5 Hospitals and ensure that we develop them at all county headquarters. That way, we will be allowing people to access health services. Therefore, I want to applaud the Committee’s recommendation that the amount of money available be increased to Kshs4.5 billion, as they have recommended.

Mr. Deputy Speaker, Sir, on the issue of the equipment that is to be leased for hospitals, I would like to request that this proposal be looked at more diligently. This is because corruption – which is already a national issue that is being talked about – appears to be creeping in this institution so that before this amount of money is released to health facilities, due diligence should be done so that all the components of treatment, like the distinguished Senator for Kakamega has said, are available and the contract signed for so that we do not have white elephant equipment lying in counties.

Mr. Deputy Speaker, Sir, there is an amount of Kshs2.8 billion in the national Budget for the safety net. This is the money that is to be given to old people. As you recall, right on this Floor, many Senators expressed their concern about how this money is being used. As of now, the Ministry responsible has been unable to give us the names of the recipients of this amount. Therefore, here again money is being taken to people and is not being accounted for.

Every time, I have stood in regards to the issue of the revenue distribution, I have talked about the Equalization Fund. The Constitution allowed for the Equalization Fund

in order to take care of areas that have been marginalized in the past. This fund which is now standing at Kshs6 billion is being given to some counties selected by the Commission of Revenue Allocation (CRA) without the approval of the Senate. On that basis, the Kshs6 billion is being allocated to some counties depriving counties that are already in need, like Kitui, Baringo and other counties that were already marginalized earlier on. The Constitution meant that this money cushions those counties and yet they are not benefiting. Therefore, I would like to see us get proper formula for the distribution of the Equalization Fund and ensure that we target those counties that are marginalized.

Mr. Deputy Speaker, Sir, we spoke about the ceilings of county assemblies. As I speak here, many county assemblies have been grounded because they do not have money to look at the programmes that the county governments are undertaking. The Governor for Wajir confirmed that MCAs do not need these salaries. This is one way of governors suppressing county assemblies so that they do not oversight them. Therefore, the proposal by the Committee that this amount of money be moved from the national Government to the county governments in order to get enough money to make sure that county assemblies run efficiently, is a good idea. Therefore, I strongly recommend, approve and support the recommendation by the Committee that the money for salaries and the county governments, especially for assemblies be increased.

Finally, I want to talk about the issue of emergencies. In this Bill, the national Government has been insisting on keeping emergency funds. As much as we know, most emergencies happen at the county level. Right now, quite a number of counties are facing drought. Many counties have not had rains for the last three, four or five seasons. Therefore, they are in great need of relief food, but the national Government cannot effectively supply foodstuffs to those counties. We devolved services so that county governments are closer to the people and that they understand the needs of the people and run quickly to the issues of emergencies.

The same goes to emergencies like flooding and death occurring through certain unexpected circumstances. Therefore, it is my view - and I also I support very strongly again the recommendation of the Committee - that while the national Government remains with some funds, money for emergencies, of necessity, must be directed to counties because that is where emergencies are. In the first instance, county governments must respond to emergencies even before the national Government response.

Mr. Deputy Speaker, Sir, the issue of accountability for funds by county governments has been raised. I have been consulting with my colleagues and we wonder how many of us Senators receive proposals of budgets from the county governors before they are sent to the county assemblies, so that you, as a Senator, are aware of the proposals the governor is making.

Order! Senator, your time is up.

Mr. Deputy Speaker, Sir, I rise to support this Bill. I also want to add my voice in commending the good work done by the Committee. I am pleased because this amount was arrived at after consultations with various stakeholders.

I also want to register my disappointment with the CRA because it has treated this House unfairly. The recommendation that the CRA does should first comes to this House

because our mandate and responsibility is clearly stipulated in the Constitution and it should not be overlooked.

I want to touch on very few issues. First, it is the issue of Level 5 Hospitals. Last year, we had a very interesting debate. We, as a House, felt that the amount that was given was not sufficient. It was actually halved from the previous year. I can see that the Committee has recommended that this be upped a bit to Kshs3.6 billion.

Mr. Deputy Speaker, Sir, Level 5 Hospitals do not serve only the counties where they are; even if they are in eleven counties, they serve across counties. This amount is still not sufficient considering what is happening in the health sector. We have seen patients suffer and having to be transferred to Nairobi where they do not have enough room for medical care. It is a mess. We must make sure that this amount is actually improved, even if not this year, we should keep on improving it and not the other way round.

My second point is with regard to the issue of emergency fund. I am very supportive of the idea that counties are the ones that are very responsible for any disaster affecting the people. The other day, I saw my Governor appealing to the national Government to supply people of Nakuru with food. First of all, Nakuru County is not classified as a county which relies on relief food. However, there are areas in Naivasha and Gilgil where some people sleep hungry because of the dry season. It is a pity that Nakuru County Government is appealing to the national Government to provide them with money to buy food for their people. It is not fair. I support this Ksh4.4 billion emergency fund, but I also hope that the county government and the county assemblies, as they do their budgets will do clear regulations on how this money will be spent. We should come up with clear checks and balances to curb corruption and make sure money is used for the intended purpose.

Regarding the equalization fund, we have spoken about this fund for some time. We are told that there are some funds that are being carried over from the previous years. There is a balance of sum of Kshs1.8 billion from last year’s allocation that was not disbursed. This was because the regulations that were supposed to unbundle this and make sure that it was done, have never been tabled and discussed. We must expedite this to the National Assembly because that is where the regulations go, that this money can save Kenyans and support very many counties, about six counties that had been listed. We cannot keep pushing it. We must expedite them and make sure that they are done in good time and make sure that these funds can be helpful to Kenyans.

Mr. Deputy Speaker, Sir, with regard to the issue of medical equipment, I have been very categorical that the counties can sign the contracts.I hope that governors will sign these contracts. However, the more I think about it, the more I see that we are excited by the fact that we have a problem in the health sector. Recently, the radiology machines at the Kenyatta National Hospital (KNH) broke down. It has been chaotic and very painful to see Kenyans condemned to death. Kenyans are staring at death in the face, helpless, not knowing what to do. As long as the machines will be leased, we will not be concerned about servicing. At times, we could even outsource since we do not have the know-how to repair. We have to outsource the technology and the manpower to deal with servicing.

I was initially very excited by this. I have also listened to the divergent views that have been given by governors, medical stakeholders and practitioners. We need to have a candid discussion between all these groups of people before we make up our minds so that we do not get excited. We should not help people and yet ten years down the line, we realise that this was just another corruption scandal. This must be done in the right way. Yes, it is good, but consultations must be done widely and conclusively.

Mr. Deputy Speaker, Sir, let people talk to one another and not at each other. Let us not lecture each other, but with one another. The national Government must do things above board and on the table so that we do not leave room for suspicions. We should ensure that everything is put on the table. Governors should not be used to rubber stamp what they do not understand. Let this be explained properly so that we know why it is better to lease and not to buy. Let people do evaluation on the cost benefit analysis of why it is better to lease and not to buy and what benefits or economies of scale we will get so that we get value for our money. I support that discussion that the Committee has already put in the Report and hope that this will be done in the proper way.

I also note that in the past year, we had an issue in terms of audited reports. We had delays. Even if we are not up to date, I want to note that this is an improvement. We are basing this Bill based on the 2012/2013 Financial Year audited accounts. We should not be begging every time for the Reports to be up to date. The National Assembly must do it, especially the Public Accounts Committee which must carry out its responsibility in making sure that audited reports are up to date, tabled and deliberated on. When we are handling division of revenue, we should not be asking why the accounts are not up to date. We spoke about this last year and even the year before.

With that, I support and hope that we can also encourage county governments to ensure that as they do their budgets, their priorities are very clear. This has to be emphasized because there are areas where we need more money in terms of maternal healthcare which is still below par. We have improved, but we are not still doing very well. We are still losing very many mothers and many children at birth which should not happen. Counties have a role to play and I hope that we will have the free maternity programme carried out by the national Government being carried in collaboration with the counties because that is where the hospitals are.

Asante, Bw. Naibu Spika. Leo ni siku ya maana kwa Seneti hii kwa sababu tunajadiliana pesa zilizotengewa Serikali za Kaunti. Sisi twataka kuupitisha Mswada wa kuzipa pesa Serikali hizi kwa minajili ya maendeleo na kazi zingine za muhimu. Hatupitishi pesa hizi kusudi magavana wa kaunti wajipendekeze kwa wananchi kwamba wao ndio wenye pesa. Kama hawaangalii runinga, waangalie ili waone ni akina nani wanaopendekeza mgao huu wa pesa. Je, ni nani aliye na kibuyu au kifurushi cha pesa? Ni Bunge la Seneti. Wanafaa kwenda nje na kusema; “pesa hizi nimewaletea ni Sen. Machage aliyezitafuta.”

Hivi leo twaangaza macho yetu kwa Kshs258 billion ambazo zimegawa na Bunge la Kitaifa. Kuna mgao mdogo kwa minajili ya matibabu ya akina mama, vifaa vya matibabu, kusaidia hospitali za kiwango cha Daraja la 5 na kadhalika. Tunapendekeza kwamba Serikali hizi zipate mgao wa Kshs283,741,685,204. Hizi si pesa chache kwa sababu ukizaliwa leo na uanze kuzihesabu, utafika umri wa miaka 87 kabla kumaliza.

Bw. Naibu Spika, tulikuwa na shida kwa mgao uliopita. Lazima tuuangalie na kuona tutapeana pesa kiasi kipi katika kila kaunti. Shida tuliyonayo ni ya ufisadi. Tayari, magavana kadhaa wametajwa katika orodha ya ufisadi. Je, tunawapa pesa zaidi ili waendelee na visa vya ufisadi? Na si magavana peke yao, pia Mkaguzi Mkuu wa Serikali ametajwa katika orodha hii. Je, sasa tunawapa pesa zaidi waendelee kuiba? Wamekuwa wezi sugu. Mhe. Rais mwenyewe, katika Hotuba yake, aliukemea ufisadi unaoendelea hapa nchini. Seneti hii iliunga mkono Hotuba yake kwa dhati. Sasa twataka kuona matokeo.

Bw. Naibu Spika, tunajua walitajwa lakini tumepata Ripoti ambayo imependekezwa hapa na Mwenyekiti wa hii Kamati kwamba ni zaidi ya kaunti 30 ambazo zimetajwa. Wengine wamekula mpaka wameanzisha vita katika kaunti zao. Mifano mzuri ni kaunti za Narok, Tana River, Kilifi, Migori na kadhalika. Wemekula mpaka wamelewa; wanatapika kila mahali. Lakini sisi kama Seneti tunatekeleza waajibu wetu. Inafaa tuwaambie wananchi wafungue macho yao waangaze akili na mawazo yao vile pesa zao ambazo tunapendekeza leo hii zitatumika mashinani. Inafaa wananchi watambue kwamba hizi ni pesa zao na wala si pesa za gavana, eti ajifurahishe kwa kukimbia kwa magari ya ving’ora kushoto, kulia na kati.

Bw. Naibu Spika, hasa hizi pesa Kshs4 bilioni ambazo zimewekwa wakfu kwa sababu ya mambo ya dharura na majanga ambayo yatatokea; pesa hizi zitashughulikia mikasa kadha wa kadha. Kwa mfano shule ikiteketea, janga la kipindupindu kama ilivyo kule Migori na kadahalika---. Wakati jambo la dharura litatokea, gavana watajingamba kwa kupeleka kule hizi pesa na kudanganya wananchi kwamba wao ndio wamezitoa ilhali sisi ndio tunazipitisha hapa. Hizi ni hela za kuwasaidia wananchi hasa wakati wa majanga mashinani. Kwa hivyo, hatutaki kusikia kwamba mwananchi anaumiwa huku kuna pesa ambazo tunapitisha hapa. Haifai kumpigia magoti gavana, kumhusudu na kumuita majina ya enzi au ya kifahari ili afurahi naweze kuwarushia pesa chache kwa minajili ya janga litakalotokea mashinani. Inafaa wananchi wajue kwamba hii ni haki yao.

Ni lazima kuundwa kamati ya majanga mashinani. Tutapitisha hizi pesa, lakini usimamizi wake usiwe kitendawili ambacho kinaweza kutatuliwa tu na magavana. Hata kama Katiba inawapa magavana uwezo wa kugawa pesa hizi ni lazima wawe waangalivu. Ombi letu kwao n waache uchoyo na kujitukuza.

Sen. (Dkt.) Khalwale amesema kwamba vifaa vimetolewa na Serikali. Hata hiyo, pesa hazijatolewa kwa minajili ya kuanzisha mipango ya kujenga maharaba. Inafaa hili jambo liangaliwe kwa undani kwa sababu itakuwa ni aibu kama vifaa vitatolewa na Serikali kuu kwenda mashinani halafu visifanye kazi. Kwa hivyo, ni lazima tujenge mahabara na kuyapea vifaa. Mimi ni daktari na ninajua umuhimu wa hili jambo. Ni lazima hawa magavana waweke sahihi kwa vile vipengee vitatu ambavyo hawakutia sahihi ili mpango huu ukamilike. Ninashukuru kwamba Serikali kuu imekubali kutoa hizi pesa. Tulikuwa tunafikiria kwamba watatoa vifaa mashinani halafu wakaingiza kwa mfuko. Ninashukuru kwa sababu wamefanya jambo la utu na la maana ili kuhakisha kwamba hizi pesa zimetoka kwa Serikali kuu.

Pia kuna pesa za ziada ambazo zitatolewa kwa zile sehemu ambazo labda maendeleo hayakufika. Ni lazima tuangalie mambo haya kwa sababu mgao wa hizi pesa

hauleweki kabisa. Kuna sehemu ndogo ndogo ambazo zimejumuika kwa kaunti kubwa kubwa na kuonekana kana kwamba zimeendelea. Kwa mfano, kule mlima Kenya, ukienda sehemu zingine za Nyandarua, hazina maendeleo kabisa. Ukienda Kieni mahali pa ukavu, wako nyuma na unawalinganisha na---

Order! You must organize your time within the ten minutes due to you.

Order! You must organize your time within the ten minutes due to you.

Thank you, Mr. Deputy Speaker, Sir. I also rise to support the Report and to also thank the Committee for I know they have done very extensive work. I also want to thank all the stakeholders who attended the public hearings.

Mr. Deputy Speaker, Sir, it is time we gave a very clear recommendation to the CRA, that it will be prudent if every December we receive their recommendations on this Bill because that is what the Constitution says. We are hoping that this year we shall start on a new slate and ensure that within Article 216 of this Constitution we are able to agree and follow the procedure to the end.

I would also like to talk on two other issues with regard to this Bill. First, is the issue of equipment. I want to thank Sen. (Dr.) Machage because it was in 2013 when he brought before this House a Motion urging the Government to ensure that all Level 5 and Level 4 hospitals are provided with this equipment. The Constitution of Kenya, 2010, in Article 43 states that every person has the right to health. Women are the ones who suffer in this country when it comes to issues of equipment. When a woman in Turkana is taken ill and she wants to do dialysis, she must travel to Eldoret. That is because we only have four ICUs in this country; Nakuru, Mombasa. Eldoret and Nairobi.

Mr. Deputy Speaker, Sir, when we talk about this equipment, this was a tender that was floated way back in November 2013 and the companies that were awarded were very serious companies that even a Kenyan who would have wished to be part of this could not. We are talking about companies like Philips from the Netherlands and General Electric from the United States of America where we are sourcing radiology equipment.

The county that saddens me most is Garissa County where there is only one theatre table. During the recent terrorist attack in Garissa, the Government had to fly to Garissa six surgeons who were unable to work because there was only one theatre table. If, indeed, we had that equipment, today the number of casualties would have been less because we had to airlift those who were hurt to KNH.

It is also important for us to look at this situation from a different perspective. I want to inform the House that some of us before we became Senators, we supplied goods to the Government through a tendering process. I know how the Ministry has had challenges. When we talk about managing equipment services, in sub-saharan Africa and even in the United Kingdom, this is the procedure they use. One of the things it does is to ensure that you have the same person to maintain the equipment and train the users. This helps to save a lot of money and ensures that taxpayers’ money is properly used.

Looking at the number of Members interested, I further rule that the time limit be five minutes. The next speaker will have five minutes.

Looking at the number of Members interested, I further rule that the time limit be five minutes. The next speaker will have five minutes.

Mr. Temporary Speaker, Sir, from the outset, I want to make it clear that we are discussing the accounts of the Financial Year 2012/2013. In supporting this Report, we must read it carefully, analyse it and come up with answers.

I wish the Chairman were here. If you go to page 9, this Report has a lot of discrepancies. This is what I want Senators to analyse. On page nine, starting with the column that reads “National Government,” the allocation to the national Government is Kshs976,925,500,000. Out of this, Free Maternal Health Care is given Kshs4,298,000; Leasing of Medical Equipment is Kshs4.5 billion; Level 5 Hospitals Kshs3,600,480,000; Healthcare facilities, Kshs900 million; Compensation for foregone user fees County Emergency Funds is Kshs4.4 billion; Equalisation Fund is Kshs6 billion and County Equitable Share is Kshs259,774,500,000.

If you add the figures starting with Kshs1,242,700,000,000 all the way done, it is wrong. There is Kshs18 billion hidden in the addition which had never be thrashed out. That is point number one.

Order! What you have pointed out could have meaning. However, if you look at Order No.3 on our Order Paper, we are actually looking at the Bill; the Division of Revenue Bill (National Assembly Bill No. 11 of 2015) . We are not discussing the adoption of the Committee’s Report, just to correct you.

Thank you very much, Mr. Temporary Speaker, Sir. However, I was just pointing out the errors. In mathematics, numbers must add up. If they do not add up, then there is something extremely wrong with these figures. There is Kshs18 billion hidden somewhere.

To conclude my contribution, Mr. Temporary Speaker, Sir, just read down there on the “Total Sharable Revenue.” What does that mean? It means that the sharable revenue is Kshs1,242,700,000,000. However, the Chairman, his Committee and the CRA turn around and tell us that audited accounts are Kshs776.9 billion when allocation has already been made. Look at all this. These are physical numbers. Therefore, Kshs776.9 billion is a number that is picked and plucked there and we are told that is the audited account.

Mr. Temporary Speaker, Sir, we should deal with the true position. You cannot change me from what is provided for in the Total Shareable Revenue to read something else. I want Senators here to stand and tell me what exactly we are sharing here.

If you listened to me, that is why I advise and direct you to look at the figures on the printed Bill that is presented to us for discussion. I am sure the Committee may have noticed that. You should look at it. If you want to make any comments for the speaker’s benefit, do so but you should look at the Bill and discuss it.

Mr. Temporary Speaker, Sir, will you add me two more minutes because the interferences were many?

Okay, you have two more minutes.

Thank you, Mr. Temporary Speaker, Sir. I still insist whether the Bill will come, whether it is on the way or whether it has been presented, currently, we

are discussing about this Report. I emphasis the reading down there which says “Total Sharable Revenue.” If that cannot be read and put into practice, then we do not need this Report. We should wait for the Bill and deal with it.

There is something extremely wrong here. I do not support the Report with great errors. That is stealing of public funds.

Order, Sen. Muthama. Sometimes, it is good to listen to the Speaker when he gives advice and direction. Whereas your concern may be legitimate, you will not even have the opportunity to move any amendment on that Report. You can only make amendments at the Third Stage of the Bill. So, save your voice and energy. You have put the point, but listen to my advice on the real issue here.

One more minute, Sen. Muthama.

Mr. Temporary Speaker, Sir, I agree with your advice. I take it seriously. However, let it be noted that what is written in this Report is written and what the Chairman read was a collection of every detail from this Report. If I had the Bill here, I would have talked differently. However, currently, I am dealing with this.

Mr. Temporary Speaker, Sir, I do not support.

Mr. Temporary Speaker, Sir, I rise to support this Report and the amendments. First and foremost, I am really disappointed with the CRA. It looks like the discussions we had with them prior to this Bill fell on deaf ears. It is not right for this Senate to be used as a rubber stamp. Secondly, the Constitution and other legislations are very clear in terms of how the budgets should be formed. I am sure Members of the public are informed about what is happening in the Budget. If a commission is not putting into consideration the recommendation by the Senate, then I do not know what we are doing here. To add my voice on the amendments, I would like to talk about Level 5 Hospitals. Some of us come from counties where there are no Level 5 Hospitals.

You will find that there is a mother who has a maternity problem. If she is taken to Isiolo County Hospital, she might not get the services she requires. So, where will she go? It is important to increase funding to Level 4 Hospitals. It is unfair for one person to travel all the way from Wajir, Isiolo or Marsabit all the way to Nyeri or to KNH.

Regarding the issue of village polytechnics, Kshs19 million has been allocated to each county. That is nothing. We must get our priorities right. There are some counties that do not have village polytechnics. Why can the CRA or the Government not look at the counties which do not have village polytechnics and give priority to them instead of giving each county Kshs19 million? This is really unfair and it should be reconsidered.

The other point is consideration by the stakeholders before we end up discussing this issue in the Senate. According to me, it is just formality. We listen to various stakeholders, but unfortunately, we do not consider their recommendations when we come up with a budget. We must change this routine.

Finally regarding security, we have a big challenge and I have seen the recommendations in the Bill. It is high time that we consider those amendments and seriously fund the security department and make sure the funding goes to the relevant counties facing insecurity in this country.

Regarding emergency funding, we have counties which require relief food year in, year out. It is important that we give people the formula of how to get bread and not bread itself because we cannot be depending on relief year in, year out, and the money allocated for emergency does not even reach the intended people, but end up in people’s pockets. We must come up with proper structures in terms of dealing with our emergencies.

With those few remarks, I beg to support.

Asante sana, Bw. Spika wa Muda, kwa kunipa nafasi hii ili kwa roho ngumu na huzuni mwingi niunge mkono Mswada huu. Kama ningekuwa ni mtu wa kawaida ningeupinga Mswada huu lakini kwa sababu mimi ni Seneta, nitaunga mkono. Nitatoa sababu kwa nini naunga mkono Mswada huu.

Naunga mkono Mswada huu kwa sababu tunaongeza pesa kwenda katika serikali za kaunti. Je, serikali hizi za kaunti zinajua kama sisi tunafanya kazi hiyo? Hao magavana wanajua na kuheshimu Seneti kwamba sisi ndio baba na mama wanaowapelekea pesa hizo? Leo hii hapa tunang’ang’ana kuongeza zaidi ya Kshs30 billion lakini ukifika huko, Maseneta hawajulikani wala hawaonekani mahali popote. Hakuna mahali ambapo Seneti inasemekana kwamba imefanya kazi hii. Hii imekuwa kama hadithi ya mnyama fulani kufukuza mnyama na akishamshika, anapewa mifupa. Sisi kazi yetu hatueleweki wala hakuna jambo lolote tunalolifanya katika kaunti zetu. Ikizidi, wanasema kwamba Maseneta wako Nairobi na kazi yao ni kula chapati na kuku na wala hatufanyi kazi.

Wakati huu haya ndio mambo ambayo tunatetea na tunataka pesa nyingi kwenda katika kaunti kwa sababu ya kufanya mambo ambayo yatakuwa na manufaa ya watu wetu. Kwa mfano, kuna pesa za dharura. Ni nani asiyekubali kwamba kaunti zetu zote zina mambo ya dharura. Kuna dharura za ukame, vyakula na kadhalika. Ndio maana kifungu hiki cha pesa za dharura ambazo zimetengwa na Seneti hii, naishukuru sana Kamati ya Fedha na Bajeti kwa kutenga fedha za dharura katika kaunti.

Tukiangalia fedha za afya ni kwamba Kamati ya Fedha na Bajeti yataka kuona kwamba wananchi katika kaunti wanapata huduma nzuri za afya. Jiulize ni hospitali gani katika kaunti utapata ina madawa na vifaa vya kutosha? Hali ni ile ya miaka nenda, miaka rudi na hakuna mabadiliko. Haya ndio mambo ambayo tunasema tuna uzitu mkubwa wa kuongeza pesa hizi. Tunachohitaji zaidi ni kuonekana ya kwamba kuna mambo yanayobadilika katika kaunti. Hali za wananchi wetu bado ni hali zile za “19 vua” kofia mpaka leo. Hakuna madadiliko hospitalini; foleni ni zile zile, shida ni zile zile. Sasa imekuwa ni hatari bin danger.

Kwa hoja ya nidhamu, Bw. Naibu Spika wa Muda. Ningependa kuuliza huu mwaka wa “19 vua” kofia ni upi?

Ni nidhamu au ni swali?

Je, kutuambia sisi kwamba kuna mwaka unaitwa “19 vua” kofia ni haki?

Bw. Spika, namshukuru. Mwaka “19 vua kofia” ni kutoka 1900 mpaka leo. Yaani kutoka hiyo miaka ilipoanza mpaka leo, hakuna mabadiliko yoyote, hali ni ile ile ya kutoka 1900 mpaka 2015; hali haibadiliki. Ndio maana tunasema

kwamba vile tumekwenda katika ugatuzi, yatakikana kuwe na mabadiliko. Ndio kwa sababu tunaongeza pesa katika mgao wa serikali za kaunti.

Hatuongezi pesa ili walio na matumbo madogo wazidi kuwa na matumbo makubwa. Tunaongeza pesa kwa huduma ya mwananchi ili mabadiliko yaonekane. Si kwamba wakubwa wawe na magari kumi na tano bali tunaongeza ili huduma iwe bora. Inafaa ule mzalendo anayesimama kwenye foleni na kupiga kura aweze kuona mabadiliko. Hayo ndio mambo muhimu.

Jambo la pili---

Order! Senator, your time is up. Sen. Wetangula, as you present your views, your representative – Sen. (Dr.) Khalwale – said that he had your blessings to second this Bill. I want you to address the concerns of Sen. Muthama. If there is a mistake, create an avenue for amendment. The Senate Minority Leader (

Mr. Temporary Speaker, Sir, if you check---

First of all, can you clarify what point you are on?

Mr. Temporary Speaker, Sir, I am rising on a point of information.

Then he has to give you the permission Do you accept to be informed, Sen. Wetangula?

The Senate Minority Leader (Sen. Wetangula) : Please, inform me.

Thank you very much, Senate Minority Leader. I know that the Chairman said that we stick to page 6, but we also need to read Table 2 on page 15 of the Bill. On page15, Table 2, the total revenue collection for Financial Year 2015/2016 is Kshs1,242,699,000. But what is being referred to on the other end is 33 per cent of money which was collected in Financial Year 2012/2013 is Kshs776.9 billion.

You will have to explain yourself later as the Vice-Chair of the Committee. Let Sen. Wetangula speak his mind.

The Senate Minority Leader (Sen. Wetangula) : Mr. Temporary Speaker, Sir, I had not even made my point. I had already seen both tables.

Mr. Temporary Speaker, Sir, I was saying that we must, as a Senate, continue fighting for and making the CRA appreciate that the difficulties of implementation and absorption of money at the counties notwithstanding, functions must be sufficiently

Then he has to give you the permission Do you accept to be informed, Sen. Wetangula? The Senate Minority Leader (

resourced for the resources to go to the counties. You cannot devolve agriculture and still have agricultural functions being handled at Kilimo House. You cannot devolve water and still have billions of shillings left in Nairobi on water.

If you look at the schedule on page 6 – Table 1 – the Total Sharable Revenue in the Bill is Kshs1,242,700,000,000. The Bill acknowledges as such, but we go on to mount a deception to the public and the counties by saying that what they are getting – Kshs258.008 billion is only 21 per cent of the sharable revenue. So, it is not true that the counties are being given 33 per cent of the sharable revenue. This is the fraud that I am talking about. At the end of the day, we are offloading services and functions without attendant financial support to the counties. If we are using Kshs776.9 billion as the sharable revenue, which is not the case in the Bill, then that cannot be the figure to use. If we are talking of 33 per cent, then the sharable revenue that goes to the counties is Kshs410 billion. This means that we have shaved off over Kshs140 billion that should go to the counties.

Mr. Temporary Speaker, Sir, I heard you when I was driving talking about corruption. Yes, there is corruption in the counties, but there is even bigger corruption at the centre. If you look at the so-called list of shame, if in a Cabinet of 18, six are sent home on suspicion of corruption, then you know very well where corruption is domiciled.

Please, inform me.

Thank you very much, Senate Minority Leader. I know that the Chairman said that we stick to page 6, but we also need to read Table 2 on page 15 of the Bill. On page15, Table 2, the total revenue collection for Financial Year 2015/2016 is Kshs1,242,699,000. But what is being referred to on the other end is 33 per cent of money which was collected in Financial Year 2012/2013 is Kshs776.9 billion.

You will have to explain yourself later as the Vice-Chair of the Committee. Let

Order! Sen. Njoroge represents

giving the counties a paltry 21 per cent and then publishing that we have given them 33 per cent. This is wrong.

More importantly, Mr. Temporary Speaker, Sir, we know that even as we have had challenges with some governors engaging in unacceptable conduct, some counties are doing very good and commendable devolution work. There are counties that are doing such good work that we need to give them more money. We have been saying that we want the sharable resources to be based on budgets, not on audited accounts that are five years old---

Order, Sen. Wetangula! Your

Order, Sen. Mungai! I will give you time to explain yourself.

Service (NYS) works – when will they ever reach Migori County? When will they ever reach Baringo County? When will they ever reach Elgeyo-Marakwet County? We want to see that the revenues that affect all counties being equitably distributed between counties for them to take charge of their developmental needs.

Mr. Temporary Speaker, Sir, I beg to oppose.

Mr. Temporary Speaker, Sir, he started by saying that it appears like I am misleading the House. How can it appear? It is either I am misleading the House or not, and I know that I am not. Mr. Temporary Speaker, Sir, this is a Bill that has come to this House from the National Assembly. It is very clear for the distinguished Senator for Nakuru. If you look at page 6, the Total Sharable Revenue is Kshs1,242,700,000,000---

Hon. Senators, what

Proceed, Sen. Amos Wako.

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

Thank you, Mr. Temporary Speaker, Sir. I know this is a very important Bill and this is the only chance that Senators have to speak on the budget making process. However, I am worried that some of us will not have a chance to speak to this important Bill because of time constraints. Could you consider reducing our time to five minutes so that as many of us can contribute?

Order, Sen. Wetangula! Your

Service (NYS) works – when will they ever reach Migori County? When will they ever reach Baringo County? When will they ever reach Elgeyo-Marakwet County? We want to see that the revenues that affect all counties being equitably distributed between counties for them to take charge of their developmental needs.

Mr. Temporary Speaker, Sir, I beg to oppose.

Asante sana, Bw. Spika wa Muda, kwa kunipa fursa hii ili niungane na wenzangu kuunga mkono Mswada huu. Mswada huu ni muhimu sana katika Seneti kwa sababu ni mojawapo ya sababu ambazo Katiba yetu imetambua kuwa lazima Seneti iwepo katika ugawaji wa pesa kwa kaunti zetu 47.

Bw. Spika wa Muda, nataka kuchukua fursa hii kumpongeza Mwenyekiti wa Kamati hii na wote anaofanya kazi nao kwa kufanya kazi ngumu katika muda mfupi wa wiki mbili. Kazi hii haikuwa rahisi. Kwa furaha kubwa, naunga mkono Mswada huu kwa sababu tumeongeza pesa zaidi kwenda katika serikali zetu za kaunti ili ijulikane na watu wetu katika makaunti kwamba pesa zote zinazoshuka huko mashinani ni kwa sababu ya Maseneta na Seneti hii yote.

Nataka kuchukua fursa hii kuishukuru Seneti yote kwa kukubali kwamba Lamu ni moja katika kaunti zitakazopata ufadhili wa Kshs400 za kujenga makao makuu ya kaunti. Ni furaha kubwa ya kwamba pesa za kusawazisha wale ambao ni maskini zaidi au Equalization Fund zitapewa serikali za kaunti badala ya kwenda kwa Wabunge. Hali kama hiyo ndio inatutia moyo. Twafaa pia tuangalie kwa uangalifu mkubwa kama kuna mahali ambapo panahitaji kurekebishwa au kuletwa amendments hapa ili tufanye kazi hiyo ya kuangalia maslahi ya kaunti zetu na pesa ziende mashinani.

Kwa hayo machache, nakushukuru, Bw. Spika wa Muda, kwa kunipa fursa kama hii.

Proceed, Sen. Amos Wako.

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

Order, Sen. Wako! There is a point of order. Have a seat.

What is it, Sen. Murungi?

Thank you, Mr. Temporary Speaker, Sir. I know this is a very important Bill and this is the only chance that Senators have to speak on the budget making process. However, I am worried that some of us will not have a chance to speak to this important Bill because of time constraints. Could you consider reducing our time to five minutes so that as many of us can contribute?

some bones and while the dogs are busy fighting for the bones, the person with the meat, disappears. The MCAs are not able to effectively oversight governors. This is because when they make noise, governors take them to conferences in Mombasa or some other places, and they are given good treatment. When they come back, they do not see anything wrong.

We should separate the finances of the county assemblies from those of the county executives, if the county assemblies are going to be effective oversight organs for these funds. The issue of financial autonomy of the county assemblies is critical. This Senate should give it some priority through this budget making process.

I am happy we now have increased allocations to Level 5 hospitals. In my own county, we are facing massive problems in health the sector. Indeed, in the past two weeks, I have attended five different funeral arrangements all because of cancer. We do not have facilities for chemotherapy, radiotherapy and such other things in our county. I hope that some of the money that we will transfer to Level 5 Hospitals will address those non-contagious, but killer diseases like cancer and diabetes. Even people who are relatively rich are becoming bankrupt because of the expensive treatment and management of these complicated diseases that are affecting our people. I am also supporting the leasing of the equipment by the national Government to the Level 5 Hospitals because that is the only way we can repair the equipment quickly.

Asante, Bw. Spika wa Muda, kwa kunipa nafasi hii ili nichangie Mswada huu. Kwanza, leo ni siku kuu katika Kenya nzima. Nataka magavana na waaakilishi wa wadi kujua kwamba Maseneta ndio wanaogawa pesa. Pesa hazitoki kwa magavana. Pesa zinatoka kwa Maseneta. Sisi ndio tunaogawa pesa. Leo, nataka wanisikilize vizuri. Pesa wanazozitumia kwenda safari za ulaya na kule kwingine ni sisi ambao tunazipitisha ili kufanikisha maendeleo.

Wakenya walipitisha Katiba mpya katika mwaka wa 2010 na wakasema wanataka ugatuzi kwa nia moja na sababu moja ya kuleta maendeleo. Miaka miwili tangu tuje hapa, hakuna maendeleo yanayoonekana mashinani. Hii ni aibu kubwa. Kwa hivyo, tungependa kuwaambia magava na waakilishi wa wadi kwamba pesa tunazotaka kuwaongezea leo si za kwenda safari ama kununua magari makubwa. Hizi ni pesa za kujenga kaunti ili tuwe na maendeleo. Nataka kuona barabara nzuri, watu wangu wakiwa na maji safi na hospitali zetu zikiwa na madawa na vifaa vingine. Hivyo ndivyo tutakapofurahia ugatuzi. Kwa sasa, wengi tunalia. Wanaochomoa vitambi wakijidai wao ndio wanaofanya kazi bora katika Serikali za kaunti lakini mwananchi analia.

Magavana 13 wanasemekana wako katika orodha ya wale waliopora pesa za wananchi. Leo, tunawaongezea pesa lakini tunataka kuwaonya kwamba pesa hizo ni za maendeleo na si kutumika kununua magari au kwenda ulaya ama kuwahonga wapinzani wao. Leo nataka kazi ya Seneta ijulikane. Nitaenda kwetu nisema kufikia leo, nimepeleka Kshs8 billion lakini hakuna chochote kinachoonekana pale mtaani kwa sababu waakilishi wa wadi na magavana wanaenda safari na kutumia pesa vibaya. Pesa tunazowaongezea leo zinafaa kuonyesha ugatuzi. Zile pesa ambazo tunapewa za uchunguzi Kshs1 billion na kuona pesa zimetekelezwa zitatufaa sana. Tutaleta ripoti hapa kuonyesha pesa ambazo zimetumiwa vibaya. Wakizitumia pesa vibaya, tutaleta Hoja hapa ya kuwaondoa

Thank you, Mr. Temporary Speaker Sir for the opportunity. I want to take this opportunity to thank Members of the Committee for a good work done. We are considering a very important Bill whose intention is to provide for equitable division of revenue between the two levels of Government. This is a Bill whose intention is to ensure continuation of service delivery by providing the funds required. The amount proposed in this Bill to go to counties is Kshs258,008,000,000, sharable revenue. You will recall that is the figure that this Senate recommended, two years ago, as being sufficient to cover the functions of counties.

I do not think that there is equitable division in this respect. Only an amount of Kshs258,008,000,000 compared to a sharable revenue of Kshs1.25 trillion. In my opinion, the proposed share to the counties has fallen far short of expectations and is not adequate to meet the increasing need at the counties. However, once again, for the third year running, there is a significant difference between what is contained in the Bill and what the CRA has recommended. I cannot understand why that should be the case. We have established the CRA specifically to research. We have equipped them to make sure that they analyze the information that they give so that they arrive at a recommendation that is acceptable by all. They are an independent institution. The rest of us, including the national executive are partisan and, therefore, cannot judge cases where they themselves are involved.

Mr. Temporary Deputy Speaker, Sir, nevertheless, I want to support the various amendments proposed by the Chairman of the Committee on Finance, Commerce and Budge with respect to the emergency fund and increased funding to the Level 5 Hospitals for various reasons which have been explained here .

I also want to add the issue of fuel levy which is set aside specifically for the maintenance of roads, but now we know that the function of road maintenance is shared between the counties and the national Government. This should not be a conditional

Mr. Temporary Speaker, Sir, please, add me one or two minutes. The early childhood education and the village polytechnics are functions of the county governments. So, the CRA having recommended a figure of Kshs3.3billion to go for that particular function and thereafter listening around they agree that only Kshs0.9 billion should be given to the counties, obviously, it is inadequate.

The other item is on disaster management, which is also a function under the county government. I am disappointed that after the CRA had allocated the money for county disaster management, which is a function of the county governments, they thereafter again, changed their minds and reduced that item from the amount that is attributable to them.

The other item which also falls under Schedule Four is on county planning and housing. That is an amount allocated to the county governments initially for slum removal and upgrading. This is a very important function because if you go to the headquarters of most of these counties, they are not worth being called headquarters. Therefore, it becomes necessary right from the word go that the county governments should really plan properly their headquarters.

allocation to the counties. In fact, it should be part of the shareable revenue. I am questioning the figure of 15 per cent.

I support.

Thank you, Mr. Temporary Speaker, Sir, for giving me this opportunity to contribute to this very important Bill. I would like to congratulate the Committee on Finance, Commerce and Budget for a splendid job done and all those who participated in the making of this Bill.

There is one aspect which if you look at the total equitable and the conditional, it comes to Kshs291 billion. I wish we could have taken it up to Kshs300 billion. That arises because the Public Accounts Committee (PAC) in the National Assembly is not burning the midnight oil. They should burn candles at both ends so that we should be talking of the 2013/2014 accounts. By doing so, we would be doing service to our counties.

The problem we are having at the counties is basically lack of funds. We have counties which cannot make ends meet let alone look for money for development. If we had used the 2013/2014 financial accounts, we would have found a way of increasing the funds to the counties. Our job as guardians and protectors of the counties has to be appreciated.

Mr. Temporary Speaker, Sir, I would like to congratulate the Committee for what they have done to the Level 5 Hospitals; the increase of funding to Kshs1.563 billion and the proposed allocation for salary awards by Kshs1.8 billion and the Kshs4.4 billion allocated towards the establishment of the county emergency fund. This is highly critical. In Baringo County, we have been having issues with regard to insecurity. We have had situations where we have over 30 schools being shut down because of insecurity and yet the governor does not have funds to reopen them. With the funds which the Committee has allocated them, it will give us a good opportunity to get everybody to go back to school. Baringo County and Kitui counties have been fighting to get the Equalization Fund. I can see from the Bill that there is some good news to this end.

The money which has been reallocated like the Kshs2.5 billion from the national irrigation project was well thought out because griculture has been devolved. Nowadays, you wonder why Kilimo House has six floors of people working for the agricultural department when they should have been devolved to the county level. We hope that next year, we shall have hit the Kshs300 billion mark which we will send down to the counties.

With those few remarks, I beg to support.

some bones and while the dogs are busy fighting for the bones, the person with the meat, disappears. The MCAs are not able to effectively oversight governors. This is because when they make noise, governors take them to conferences in Mombasa or some other places, and they are given good treatment. When they come back, they do not see anything wrong.

We should separate the finances of the county assemblies from those of the county executives, if the county assemblies are going to be effective oversight organs for these funds. The issue of financial autonomy of the county assemblies is critical. This Senate should give it some priority through this budget making process.

I am happy we now have increased allocations to Level 5 hospitals. In my own county, we are facing massive problems in health the sector. Indeed, in the past two weeks, I have attended five different funeral arrangements all because of cancer. We do not have facilities for chemotherapy, radiotherapy and such other things in our county. I hope that some of the money that we will transfer to Level 5 Hospitals will address those non-contagious, but killer diseases like cancer and diabetes. Even people who are relatively rich are becoming bankrupt because of the expensive treatment and management of these complicated diseases that are affecting our people. I am also supporting the leasing of the equipment by the national Government to the Level 5 Hospitals because that is the only way we can repair the equipment quickly.

Mara nyingi tumeona Maseneta wakienda mahali, utakuta ya kwamba Seneta hatambuliwi kwa sababu wakati wa kutoa pesa, maseneta wengi huwa wamepungukiwa. Kwa hivyo, inafaa pesa hizi zitumiwe kwa ukadirifu. Inafaa pasa hizi zitumiwe vizuri. Hivi juzi hata mhe. Rais Uhuru Kenyatta alisema kwamba kuna magavana fulani ambao wametumia pesa vibaya. Kweli ni ubinadamu kwa mtu kutenda kitendo kama hicho. Lakini tunasema kwamba ikiwa jambo kama hilo liko, basi ingekuwa vizuri kama wangejiondoa ili uchunguzi ufanywe. Ikipatikana kwamba hawana makosa yoyote warudishwe kwa kazi zao kwa sababu hizi pesa tunapeleka katika kaunti ni nyingi sana na tunataka uangalifu. Tumeongezea pesa za mahospitali, barabara na hata kuongeza mishahara yao. Kwa hivyo, mambo ya matumizi ya pesa yanataka uangalifu zaidi. Watu ambao wamekadiriwa uwezo wa kutumia pesa inafaa wazitumie kwa hali ambayo wananchi wa Kenya wataona maendeleo katika serikali zao za mashinani.

Bw. Spika wa Muda, sisi katika Seneti hatutakubali pesa ambazo zinapelekwa mashinani zitumiwe vibaya. Ikiwa zitatumiwa vibaya, basi

hatua ya kisheria ni lazima ichukuliwe.

Kwa hayo machache, ninaunga mkono Mswada huu.

If you look at Standing Order No.29, it states that this Bill should be discussed until it is concluded. However, at times knowing the weaknesses of the House, we need the prerequisite numbers to vote. Therefore, I am actually convinced by Sen. Mositet that, that is necessary. I will allow one Member from either side of the House and thereafter call upon the Mover to reply.

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

Hoja ya nidhamu, Bw. Spika wa Muda. Sisi tunawakilisha Wakenya walio wengi huko mashinani. Leo ni siku muhimu na ni lazima kila mmoja wetu apate nafasi ya kutosha ili tuweze kuangazia yaliyomo katika Kenya.

On a point of order, Mr. Temporary Speaker, Sir. This is a very important day. Some Members have already had the opportunity to talk. We all represent each individual 47 counties. Those who wish to talk, because we came to talk and contribute, should be given the opportunity.

I have heard that. Yes, Sen. (Dr.) Kuti.

Order, the decision on who speaks is bestowed upon the Speaker. So, whatever list you looked at does not matter.

Let us listen to Sen. Mutula Kilonzo Jnr. Before he comes, I will make this ruling.

On a point of order, Mr. Temporary Speaker, Sir. Considering that this is one of the most important Bills for this Senate, and I believe each and every Member wants to speak to it, including me. However, at the time, I request that the Mover be called upon to reply and then we could make our contributions during the Committee of the Whole.

Owing to the desire of many Members wanting to be heard, after Sen. Mutula Kilonzo Jnr. speaks and the next one that I will call upon from the Government side, I will reduce the time to two minutes. Sen. Mutula Kilonzo Jnr. and the next speaker will have five minutes. Thereafter, other speakers will have two minutes each.

Mr. Temporary Speaker, Sir, I will not repeat what everybody else has said. However, once again, we find ourselves in another predicament where we are arguing about the provisions of the Constitution on what is sharable revenue under Article 202 on revenue raised nationally and revenue that is supposed to be divided between county governments and the national Government under Article 203 (2) and (3) .

Mr. Temporary Speaker, Sir, once again, I repeat what I said last year. We must insist to have audited accounts that are up to date so that we do not end up in the sort of argument that I have seen this afternoon about revenue collected nationally and revenue that is supposed to be divided under the Constitution. The last audited accounts talk about of Kshs776 billion. Even if we do not like it, we cannot violate the Constitution because that is what it says.

Mr. Temporary Speaker, Sir, in my view – I have said this before – this time round I am happy that the Committee on Finance, Commerce and Budget has finally disagreed with the proposals with the CRA. The CRA attempted to side-step our Committee on Finance, Commerce and Budget in terms of explaining to us one by one why they agreed to the figure of Kshs258 billion, but not a higher figure. The reason I say so is because under Article 218, the recommendations that my Chairman; Sen. Wako was referring to, the figures that are contained and were issued in December, 2014, should have come to us so that we negotiate with them in order to arrive at the figures that we have amended hence, the reason I support the amendment to increase the Emergency Fund.

During debate in the last Division of Revenue Bill, I was not in this Chamber. I was in Makueni attending the burial of 28 people who died out of alcohol poisoning. The national Government promised to pay the victims’ families, but it did not. That is the reason I support the proposal by the Committee that we return the allocation of Kshs4.4 billion proposed by the CRA.

Secondly, Sen. Murkomen is one of the Members who have defended and, in fact, requested this House to look at the question of emoluments of county assemblies yet the CRA and governors have gone ahead to agree to a reduction. That is the reason I support the amendment to increase the allocation.

With regard to Level 5 Hospitals, as far as I and the Committee are concerned, this is not negotiable. On the leasing of equipment Kshs4.5 billion, we have recommended that this House looks at the figure so that the question of value for money - where the Government proposes to lease, but in the end result, it will be much better to purchase the equipment outright - be looked into so that we get value for money.

Lastly, Mr. Temporary Speaker, Sir, we have proposed that there should be an amendment to the Public Financial Management (PFM) Act so that the sort of rush you have seen this week where we spend sleepless nights crossing all over to recommend,

If you want to discuss matters already ruled by the Speaker, then you are out of order. Did you hear me correctly?

amend or debate the division of revenue should not happen again because this should be the House of origin in terms of division of revenue.

Mr. Temporary Speaker, Sir, I beg to support with the proposed amendments by the Committee on Finance, Commerce and Budget.

Mr. Temporary Speaker, Sir, I rise to support the Division of Revenue Bill with the amendments proposed by the Committee on Finance, Commerce and Budget.

Mr. Temporary Speaker, Sir, quick provisions of the Constitution, just like my learned colleague, Sen. Mutula Kilonzo Jnr. had referred to, make it very clear in Article 203 that it must be above 15 per cent of the last audited accounts. The last audited accounts provide for us Kshs776 billion. In the calculation, it comes to 33 per cent.

Mr. Temporary Speaker, Sir, I have said this and I repeat; we must not, as a Senate and as a country, get obsessed with the percentage although the Constitution says that it must be at least 15 per cent. More focus should go to costing of functions; that resources shall facilitate functions being performed by counties. We note, oblivious to the fact that the national Government functions are supposed to be funded, that the national Government functions also support what is being done in the counties.

Mr. Temporary Speaker, Sir, last week, all of us here debated about putting more money and investing in the security sector. Security is a national Government’s function. We cannot rob the national Government of security functions to fund trips of County Executive Committee (CEC) members to Kuala Lumpur and Jerusalem to see where Jesus was born. So, we must always remember that it is important for us to measure---

We, as a Senate, are interested in the money that goes to the national Government and county governments to facilitate counties to function to ensure that the national and county governments perform their functions.

Secondly, Mr. Temporary Speaker, Sir, there is additional money for emergency. In the absence of proper definition of what an “Emergency” is--- The Constitution provides that disaster management is a concurrent function to be performed by both the national and County Governments. There must be a clear mechanism of what amounts to a disaster and an emergency.

Mr. Temporary Speaker, Sir, there are people who have been drinking. You try to educate them to avoid drinking, but they do not stop. If people die as a result of what we would say the law of volenti non-fit injuria; it is them who have made the decision. We cannot call that an emergency. In law, that is volenti non-fit injuria.

Order, may I give you free advice as a medical doctor.

As long as my time is held, Mr. Temporary Speaker, Sir, I will receive your advice.

Alcohol poisoning is a medical emergency.

Owing to the desire of many Members wanting to be heard, after Sen. Mutula Kilonzo Jnr. speaks and the next one that I will call upon from the Government side, I will reduce the time to two minutes. Sen. Mutula Kilonzo Jnr. and the next speaker will have five minutes. Thereafter, other speakers will have two minutes each.

clear definition because we might have a governor who will want to go and attend an investor’s conference in Dubai as an emergency. There must be a clear definition of what becomes an emergency for the country because the manner in which expenditures have been going on in the counties is very suspect.

Finally, I do not like to find myself in this rush. I do not feel like my thought process has been utilized. I feel that we have not used our brains to contribute effectively to this Bill. As a House, we need to support the Committee on Finance, Commerce and Budget because they have applied their minds, contributed immensely and varied the figures professionally. It is for that reason that I support this Bill. It should be an opportunity for us as a House to pass this Bill so that we can progress to the next stage.

Lastly, corruption in the counties must not be condoned. I have asked my county and I want to ask all other counties to appreciate that a county is not a private entity for one person to say that he or she is running it. The other day I told the MCAs for Wajir and Mandera that it is very shameful that MCAs go to a function and instead of saying that the resources have been allocated by the Senate, they advocate all the resources to one person; the governor. They thank the governor for constructing the road and so on. The kind of sycophancy that is going on at the county and driven by ignorance of the fact that counties are being run by multi-institutions like the Senate, the county assemblies and so on means that we cannot reduce them to a one-man institution.

I support the Bill with amendments.

Thank you, Mr. Temporary Speaker, Sir, for allowing me to contribute. This is a very important Bill and that is why I was very anxious to contribute. This is a day that we are deciding how much money goes to the counties and how much remains in the national Government. It is our duty to protect and defend our counties. I want to thank the Committee for recommending that we increase the funds to the counties. I also want to congratulate the Kenya Revenue Authority (KRA) for doing a good job. I also want to question the ability of those who are dealing with audit because they have denied counties the resources. When we get reports from the Director of Budget on the performance of counties on revenue, it is worrying. I would urge the same Committee to look at what is ailing the counties in terms of revenue collection.

Mr. Temporary Speaker, Sir, I support the proposal to increase funds for salaries, emergencies and Level 5 hospitals. But I want to caution and request my colleagues that the savings or areas to be reduced should not be as suggested. It has been suggested that

Mr. Temporary Speaker, Sir, I rise to support the Division of Revenue Bill with the amendments proposed by the Committee on Finance, Commerce and Budget.

Mr. Temporary Speaker, Sir, quick provisions of the Constitution, just like my learned colleague, Sen. Mutula Kilonzo Jnr. had referred to, make it very clear in Article 203 that it must be above 15 per cent of the last audited accounts. The last audited accounts provide for us Kshs776 billion. In the calculation, it comes to 33 per cent.

Mr. Temporary Speaker, Sir, I have said this and I repeat; we must not, as a Senate and as a country, get obsessed with the percentage although the Constitution says that it must be at least 15 per cent. More focus should go to costing of functions; that resources shall facilitate functions being performed by counties. We note, oblivious to the fact that the national Government functions are supposed to be funded, that the national Government functions also support what is being done in the counties.

Mr. Temporary Speaker, Sir, last week, all of us here debated about putting more money and investing in the security sector. Security is a national Government’s function. We cannot rob the national Government of security functions to fund trips of County Executive Committee (CEC) members to Kuala Lumpur and Jerusalem to see where Jesus was born. So, we must always remember that it is important for us to measure---

We, as a Senate, are interested in the money that goes to the national Government and county governments to facilitate counties to function to ensure that the national and county governments perform their functions.

Secondly, Mr. Temporary Speaker, Sir, there is additional money for emergency. In the absence of proper definition of what an “Emergency” is--- The Constitution provides that disaster management is a concurrent function to be performed by both the national and County Governments. There must be a clear mechanism of what amounts to a disaster and an emergency.

Mr. Temporary Speaker, Sir, there are people who have been drinking. You try to educate them to avoid drinking, but they do not stop. If people die as a result of what we would say the law of volenti non-fit injuria; it is them who have made the decision. We cannot call that an emergency. In law, that is volenti non-fit injuria.

the funds meant for fertilizer and strategic grain reserve be reduced. Even with the current allocations, we are not getting enough. It has been proposed in the Bill that it was going to rise from Kshs2.7 billion to Kshs2.9 billion. Therefore, if further reduction is done, then we are paying lip-service to agriculture, which is devolved.

Mr. Temporary Speaker, Sir, there are certain functions of agriculture which can best be done at the national level, for example, provision of fertilizer and purchase of grain---

Order! Your time is up.

Thank you, Mr. Temporary Speaker, Sir. Let me also take this opportunity to thank the Committee for the work that it has done on this Division of Revenue Bill.

I will only raise one point concerning the funds which have been allocated to the National Youth Service (NYS) . I think the funds which were allocated to the NYS, which we are going to do proper legislation for, are a blessing for this country because a week ago, we lost many Kenyans. I think we lost the majority of them because they lacked survival tactics. I am sure that every Senator knows that we lost 142 students. If these students had skills, which can be acquired through the NYS training, many of them would have been saved. If those four skinny people had come to the dormitory I was in with other young men, during those years, they would hardly kill ten people. We had the survival skills and would be able to defend ourselves.

Through the NYS funds, I think the nation will be able to defend itself through the skills that will be acquired. If these funds are used carefully, we are going to awake this nation which at the moment is fairly careless. If a small bomb explodes here in Nairobi, you will see a lot of people congregating at the scene, hence putting themselves in real danger. They do so because they are not conscious of survival tactics. Therefore, the fact that these funds are there is welcome. I wish they could be increased. I hope that, as Senators, we are going to discuss fully how we can give NYS training to everybody who is 17 years old, before they can get identity cards. We know that this kind of training happens in countries like Israel---

Your time is up.

clear definition because we might have a governor who will want to go and attend an investor’s conference in Dubai as an emergency. There must be a clear definition of what becomes an emergency for the country because the manner in which expenditures have been going on in the counties is very suspect.

Finally, I do not like to find myself in this rush. I do not feel like my thought process has been utilized. I feel that we have not used our brains to contribute effectively to this Bill. As a House, we need to support the Committee on Finance, Commerce and Budget because they have applied their minds, contributed immensely and varied the figures professionally. It is for that reason that I support this Bill. It should be an opportunity for us as a House to pass this Bill so that we can progress to the next stage.

Lastly, corruption in the counties must not be condoned. I have asked my county and I want to ask all other counties to appreciate that a county is not a private entity for one person to say that he or she is running it. The other day I told the MCAs for Wajir and Mandera that it is very shameful that MCAs go to a function and instead of saying that the resources have been allocated by the Senate, they advocate all the resources to one person; the governor. They thank the governor for constructing the road and so on. The kind of sycophancy that is going on at the county and driven by ignorance of the fact that counties are being run by multi-institutions like the Senate, the county assemblies and so on means that we cannot reduce them to a one-man institution.

I support the Bill with amendments.

Hon. Senators, I have been thinking about the points of order that were raised by Sen. Mositet, Sen. (Dr.) Kuti and Sen. Ndiema. I am tied by the Standing Orders when a Member rises. I want to look at Standing Order No.98.These Standing Orders were made by you and they govern me.

I will, therefore, put the Question.

We are now going to do two minutes each. Who was on the Floor? Sen. Ndiema.

Thank you, Mr. Temporary Speaker, Sir, for allowing me to contribute. This is a very important Bill and that is why I was very anxious to contribute. This is a day that we are deciding how much money goes to the counties and how much remains in the national Government. It is our duty to protect and defend our counties. I want to thank the Committee for recommending that we increase the funds to the counties. I also want to congratulate the Kenya Revenue Authority (KRA) for doing a good job. I also want to question the ability of those who are dealing with audit because they have denied counties the resources. When we get reports from the Director of Budget on the performance of counties on revenue, it is worrying. I would urge the same Committee to look at what is ailing the counties in terms of revenue collection.

Mr. Temporary Speaker, Sir, I support the proposal to increase funds for salaries, emergencies and Level 5 hospitals. But I want to caution and request my colleagues that the savings or areas to be reduced should not be as suggested. It has been suggested that

the funds meant for fertilizer and strategic grain reserve be reduced. Even with the current allocations, we are not getting enough. It has been proposed in the Bill that it was going to rise from Kshs2.7 billion to Kshs2.9 billion. Therefore, if further reduction is done, then we are paying lip-service to agriculture, which is devolved.

Mr. Temporary Speaker, Sir, there are certain functions of agriculture which can best be done at the national level, for example, provision of fertilizer and purchase of grain---

Kila gavana yuko na helicopter, kulingana---

Order!

Order! Order! Order!

Thank you, Mr. Temporary Speaker, Sir.

Waambie!

Abu Dhabi; pesa hizi sio za kupelekwa katika akaunti za magavana huko Abu Dhabi au humu nchini, kwa sababu kila gavana ana akaunti huko Abu Dhabi.

per Member to speak to the original 15 minutes, but I have cautioned you about the importance of passing this Bill today. Otherwise, if the time lapses, it will need gazettement of another sitting day and you know what it means on the timelines. It is true that we are being gagged by the so-called timelines, like Sen. (Dr.) Kuti has said. I do not want to repeat this again.

Proceed, Sen. Hargura.

Kila gavana yuko na helicopter, kulingana---

Order!

Order! Order! Order!

Thank you, Mr. Temporary Speaker, Sir.

Order! Proceed, Sen. Hassan.

Asante, Bw. Spika wa Muda, kwa kunipa fursa hii ya kuchangia Mswada huu na Ripoti hii ya Kamati ya Finance, Commerce and Budget. Mengi yamesemwa na wenzangu,

lakini ninaunga mkono na kujishirikisha na maoni yaliyotolewa na Sen. Wetangula na Sen. Muthama. Lakini katika yote haya, nimesikia wengi wakisema kwamba tunazipeleka fedha kwa magavana. Magavana hawa hawataki kuwajibika kwa mtu yeyote. Labda sisi tuna viungo spesheli ambavyo tumepewa na Mwenyezi Mungu ambavyo vinafanya tupitishe sheria ambayo inawafanya wawajibike mbinguni peke yake. Magavana hawa hawataki kuwajibika kwa Seneti, hawataki kuwajibika kwa Tume ya Ufisadi au kwa mtu yeyote. Wanataka kupelekewa neema ili watumie. Labda wangependa tusema kwamba kwa sababu wao ni waokozi wetu, basi tunafaa kuwapa nafasi ili wasiajibike kwa njia yoyote. Mahali wametufikisha hawaamini kwamba wanaweza kuwajibika kwa mtu yeyote.

Mimi ningependa kuunga mkono Mswada huu, lakini inafaa tuzingatie swala la magavana kuwajibika. Kama hawataki kuwajibika kwetu, viumbe, basi wanafaa kuwajibika kwa Mwenyezi Mungu. Watu hawa 47 wako katika tabaka lao. Wanataka kupewa pesa na kufanya kazi. Leo tunapigana hapa kuhakikisha kaunti zetu zimepata pesa. Tunapoenda katika kaunti, wanatudharau na kutufanyia mambo mengi na kutuonyesha kwamba wao ndio wafalme na wakubwa; wao ndio watawala. Kama wanataka utawala, basi waje hapa ili wapitishe kanuni za pesa. Mimi hapa na wenzangu tunajaribu ili tupate kiwango kikubwa cha pesa kuwafadhili.

Order! Order! I want you to listen to me carefully. The Members in the House now, in my own recollection, are usually the Members who are in this House for most debates. That goes without saying. The unfortunate situation we have today – I want you to listen and let us not over hammer this point to make it so prominent in the HANSARD – this Bill must be passed by a certain number of delegations. That is the dilemma and that is why your Speaker is trying to guide you on this very important issue. However, you have the mandate because any of you may move a Motion, which I will accept, of increasing the number of minutes

per Member to speak to the original 15 minutes, but I have cautioned you about the importance of passing this Bill today. Otherwise, if the time lapses, it will need gazettement of another sitting day and you know what it means on the timelines. It is true that we are being gagged by the so-called timelines, like Sen. (Dr.) Kuti has said. I do not want to repeat this again.

Proceed, Sen. Hargura.

Mr. Temporary Speaker, Sir, thank you for giving me this opportunity. I support this Bill with amendments by the Committee on Finance, Commerce and Budget. From the Bill, you can see that the Commission on Revenue Allocation (CRA) had proposed Kshs282 billion for the counties while we have the Division on Revenue Bill indicating Kshs258 billion. The CRA has been doing some good work but they should have come to us, we discuss and support them on this, so that they are not arm-twisted the way it is always done where their figures are always reduced.

The shareable revenue is divided into two; the national Government Equalization Fund and the county governments. I have issues with this Equalization Fund. We have been having it in the previous budgets but it has never been availed to the affected counties for remedying the marginalization which it is intended for. Up to now, we have not seen it being used, so it is better for the concerned bodies to move first and have this Equalization Fund actualized. It is better if it is done according to Article 204 (3) (b) of the Constitution which states:-

“The national Government may use the Equalization Fund-

Your time is up.

Mr. Temporary Speaker, Sir, thank you for giving me this time. I really understand what my colleagues are going through since this is the most memorable day for the Senate. This is the day where the whole country expects the Senate to perform its mandate. I believe that the governors, the MCAs and wananchi are excited because we are debating on the amount that we are going to have for the year 2015/2016. I will just compare this moment to the moments of a Christian during Christmas Day and Eid ul fitr to the Muslims or any other important day in one’s life.

I support this Bill and I know that the Committee did its best. It worked around the clock. In fact, just to let you know, the Committee Members have been meeting from

Mr. Temporary Speaker, Sir, thank you for the opportunity. I am very grateful as a Member of this Committee to all the Senators who have supported our Report. This is also a big lesson to the CRA and IBEC because they had overstepped their mandate and sought Kshs250 billion while not involving the Senate. As far as the county allocations are concerned, the Senate has the final say. I would like to urge governors to use this money in a transparent manner. This money is not meant for them to do their private businesses.

Thank you.

I call upon the Mover to reply.

Mr. Temporary Speaker, Sir, I thank all the Members who have contributed to this very important Bill. I agree with most Members that it would have been much better if we had more time allocated for it.

Mr. Temporary Speaker, Sir, I want to clarify on the provisions of Article 203 with regard to the percentage which some Members do not access properly. Article 203 is very specific that in terms of the percentage, the revenue should not be less than 15 per

Your time is up.

cent. Let me just read for you because this matter always raises issues. Even last year, we had the same issue.

Article 203(2) says:- “For every financial year, the equitable share of the revenue raised nationally that is allocated to county governments shall be not less than fifteen per cent of all revenue collected by the national government.” Article 203(3) states that:- “The amount referred to in clause (2) shall be calculated on the basis of the most recent audited accounts of revenue received, as approved by the National Assembly.” Mr. Temporary Speaker, Sir, if you look at the Schedule we have on page 8 of the Report, you will see that the last audited and approved accounts are for the Financial Year 2012/2013. The revenue in that financial year was Kshs776 billion. When you take the total amount of the equitable share which is Kshs259.774 billion that we have allocated, you will see it is a percentage of Kshs776 billion. If you take the total of Kshs291 billion, that is the percentage of Kshs776 billion for the purpose of ensuring 15 per cent which is set on that basis. Members should not confuse that figure which is the actual revenue we expect to collect in the next financial year. That is a different matter. We intend to collect Kshs1.2 trillion in the next financial year, according to the Government, out of which county governments will get Kshs291 billion.

Mr. Temporary Speaker, Sir, I want to advise Members that with regard to contingencies, some of the counties have already passed Bills in their assemblies. These are County Emergency and Disaster Preparedness Bills. There are template Bills that had been developed by the Kenya Red Cross and shared with most counties which empower counties to develop disaster responsiveness. It involves emergencies of accidents which may include fire, drought, floods and other kinds of things. The basis for application of that money would be in the context of such legislation in our view.

Otherwise, I beg to move.

Nonetheless, the governors’ concern was that they were not fully consulted. Presuming what we read in the media is correct, then I think they have a point because priorities can differ. In a county like Nyandarua, we do not even have two hospitals and maybe this issue would have been remodeled differently. Having said that, let me also in the same breath raise an issue that the Kshs293 billion will be very useful, but there are some four counties like Nyandarua County which are very unfortunate because when devolution cam,e we found ourselves with no previous local authority offices to inherit or even the provincial administration because of certain historical circumstances.

Mr. Temporary Speaker, Sir, I have proposed an amendment to support the four counties which found themselves in those very unfortunate circumstances and that is Nyandarua, Tharaka Nithi, Tana River and Lamu. The other issue is the Emergency Disaster Fund. I think it is a good idea to provide some funds for it, but our experience---

Order! Your time is up. Sen.

Mr. Temporary Speaker, Sir, I want to thank all the Senators for their contributions because I am a Member of the Committee that came up with this Report and that is why I would have not felt bad even if I was not going to speak. They have agreed with our proposals and we are most grateful.

This Government has been in office for about two years, and I am sure that governors and MCAs have now started to realize that there are auditors who audit expenditure. I think we should not keep on crying about what the governors are doing. In this country, we have all institutions which have been empowered by law to decide for the county governments. We can pass any law provided we do not conflict with the current Constitution.

Mr. Temporary Speaker, Sir, governors have realized that without the Senate, they will be working in futility. For example, when we suggested adding them more money, one of the governors stood before us and said that he is satisfied with the allocation because he has no problem and we wished he understood the problem of the people who elected him because none of them would dare do that.

Mr. Temporary Speaker, Sir, thank you for the opportunity. I am very grateful as a Member of this Committee to all the Senators who have supported our Report. This is also a big lesson to the CRA and IBEC because they had overstepped their mandate and sought Kshs250 billion while not involving the Senate. As far as the county allocations are concerned, the Senate has the final say. I would like to urge governors to use this money in a transparent manner. This money is not meant for them to do their private businesses.

Thank you.

I call upon the Mover to reply.

Order, Senators! The results of the Division are as follows:-

cent. Let me just read for you because this matter always raises issues. Even last year, we had the same issue.

Article 203(2) says:- “For every financial year, the equitable share of the revenue raised nationally that is allocated to county governments shall be not less than fifteen per cent of all revenue collected by the national government.” Article 203(3) states that:- “The amount referred to in clause (2) shall be calculated on the basis of the most recent audited accounts of revenue received, as approved by the National Assembly.” Mr. Temporary Speaker, Sir, if you look at the Schedule we have on page 8 of the Report, you will see that the last audited and approved accounts are for the Financial Year 2012/2013. The revenue in that financial year was Kshs776 billion. When you take the total amount of the equitable share which is Kshs259.774 billion that we have allocated, you will see it is a percentage of Kshs776 billion. If you take the total of Kshs291 billion, that is the percentage of Kshs776 billion for the purpose of ensuring 15 per cent which is set on that basis. Members should not confuse that figure which is the actual revenue we expect to collect in the next financial year. That is a different matter. We intend to collect Kshs1.2 trillion in the next financial year, according to the Government, out of which county governments will get Kshs291 billion.

Mr. Temporary Speaker, Sir, I want to advise Members that with regard to contingencies, some of the counties have already passed Bills in their assemblies. These are County Emergency and Disaster Preparedness Bills. There are template Bills that had been developed by the Kenya Red Cross and shared with most counties which empower counties to develop disaster responsiveness. It involves emergencies of accidents which may include fire, drought, floods and other kinds of things. The basis for application of that money would be in the context of such legislation in our view.

Otherwise, I beg to move.

Before I put the Question, I order that the Division Bell be rung for five minutes.

An Act of Parliament is a matter affecting counties. No Bill can come here if it does not affect counties, so we have to vote. That rule you are contemplating pertains only to Motions and not Bills.

Are we ready? We are going to take one minute to vote. You may vote now. Assisted voters will wait for the print-out.

SCHEDULE

(s.4)

The “Ayes” have it.

Order, Senators! You will recall that when I gave the Communication from the Chair, I did mention that we are here for only one business. We have dealt with Order No.3. Before we move to Order No.4, which is the Committee of the Whole, may I just remind you that we have one more very important vote to make and we must have the threshold of 24 Senators. I request that all of us are here so that we can finalize the business of today.

Next Order!

Mr. Temporary Chairperson Sir, on behalf of the Senate Majority Leader, Sen. (Prof.) Kindiki, I beg to move that the Bill be amended by deleting the Schedule and substituting therefor the following new Schedule-

SCHEDULE

(s.4)

Point of order. The Temporary Chairperson (Sen. Murkomen) : Anyone who has a point of order will have to wait. There is no point of order during voting. What I did for the Senate Minority Leader was exceptional. Schedule

I put the question that the Schedule be amended as proposed by the Senate Majority Leader. This was moved by the Chairman of the Committee.

Point of order. The Temporary Chairperson (Sen. Murkomen) : Hon. Senators, I have said that there is no point of order unless you have a problem with the way the question is framed.

What is the justification?

Mr. Temporary Chairperson, Sir, the reason is as we mentioned earlier; we have amended by increasing the amount of money that will go to the county governments. The equitable share has increased from Kshs258 billion to Kshs259.7 billion. The conditional allocation will increase from Ksh25.773billion to Kshs31.669 billion. We increased Kshs1.6billion to allow for additional money to help in payment of salaries and allowances as per the requirement of the Commission on Revenue Allocation (CRA) circular. We have increased the county conditional allocation by providing for the county emergency funds of Kshs4.4billion and an additional kshs1.6 billion to Level Five hospitals. That brought the total of the whole allocation of revenues to the counties to Kshs291,444,185,204 billion which represents 37 per cent. (Question of the amendment proposed) The Temporary Chairperson (

Point of order. The Temporary Chairperson (Sen. Murkomen) : Order, Senators. I will rule accordingly. Let us maintain order.

Let me explain, Mr. Temporary Chairman. There is an amendment from the Senate Majority Leader that four county headquarters; Nyandarua, Tharaka- Nithi, Lamu and Tana River County - that do not have headquarters - be provided an additional Kshs1.6 billion for construction of county headquarters. This will bring the conditional allocation to Kshs33.2 billion and the total to Kshs293 billion.

The Temporary Chairperson (Sen. Murkomen) : Order, Senators. Sen. (Dr.) Khalwale.

The Bell should ring for another two minutes. (The Division Bell was rung for a further two minutes) Order, hon. Senators. Take your seats so that you vote. We have three votes. The first one is on Clause 3, 4, 5 and 6. I will put the question. Clause 3, 4, 5 and 6 We will first vote on Clause 3, 4, 5 and 6 which have no amendments then we move to the ones with amendments. We will vote for 30 seconds starting now.

Order, Senators. Chairman, I

Mr. Temporary Chairman, Sir, I want to appeal to the House, through the Chair, that the four counties that are appealing for the support of the House---

On point or order, Mr. Temporary Chairman, Sir. If you allow me to raise an issue about the Nairobi Delegation; the Senator for Nairobi is on record as saying that he has stepped aside – whatever that means – he said that he will not attend sessions, he is no longer a Deputy Whip and he will wait until whatever is going on is over. Can, therefore, the Nairobi Delegation have a proxy to vote for that Senator because I believe the distinguished Senator who is the Chief Whip for the Majority side is voting as a Nairobi proxy. If the voter has stepped aside, can there be a proxy?The Temporary Chairperson (

You have not even listened to me.

You said you are appealing, but under which Standing Order?

Mr. Chairman, Sir, even the Chair should take judicial notice of the happenings in the country. That is why he is not here. This is a special sitting and you have not seen him. He has said so very clearly, un- contradicted, that he has stepped aside. It may be a political gimmick but we take it for what it is.The Temporary Chairperson (

Order, Sen. (Eng.) Muriuki. We are in Division and the bars have not been drawn. We have a way out for Sen. (Eng.) Muriuki, but we have not reached there yet. We will finish and at the time we are reporting to the House, it can be subject for your recommittal to the Committee for that reason and it would be the House to decide at that stage. So, you need to work with the necessary people.

Obure, Kisii County; Sen. Okong’o, Nyamira County; Sen.Wako, Busia County and; Sen. Wetangula, Bungoma County.

NOES: Sen. Hassan, Mombasa County.

April 9, 2015 SENATE DEBATES NOES: Nil ABSENTIONS: 1

I put the Question, that the Schedule be amended as proposed by the Senate Majority Leader and be part of the Bill. That is the amendment as initially proposed by the Chair.

You have 30 seconds to vote, starting now.

Anyone who has a point of order will have to wait. There is no point of order during voting. What I did for the Senate Minority Leader was exceptional. Schedule I put the question that the Schedule be amended as proposed by the Senate Majority Leader. This was moved by the Chairman of the Committee.

Point of order. The Temporary Chairperson (

Clause 2, Title, Clause 1

The Temporary Chairperson (Sen. Murkomen): I now put the question; that Clause 2, the Title and Clause 1 be part of the Bill. You have 30 seconds to vote, starting now.

Mr. Temporary Chairman, there is a further amendment to the Schedule from the Senate Majority Leader that has just been approved by the Speaker. I seek your guidance on how to go about it. The Temporary Chairperson (

On a point of order, Mr. Temporary Chairman, Sir. The Temporary Chairperson (Sen. Murkomen) : What is it Sen. (Dr.) Khalwale, you have been very agitated for too long.

Can I explain, Mr. Temporary Chairman? The Temporary Chairperson (

Mr. Temporary Chairman, Sir, I am not agitated, for the record, I just want to bring to the attention of the House that while the House was in Session the Chair was making calls on his cell phone. If we want to be taken seriously as a Senate and if the Chair wants to call for order in this House, how will he call for order when he is disorderly?

Mr. Temporary Chairman, Sir, we would like you to rule. The Temporary Chairperson (Sen. Murkomen) : Order Sen. (Dr.) Khalwale. The Mover should now move. Open the door and draw the Bar. Proceed, Sen. Billow.

Yes, proceed.

Mr. Chairman, I beg to move that the Committee do report to the Senate its consideration of the Division of Revenue Bill (National Assembly Bill No.11 of 2015) and its approval thereof with amendments.

Sen. Murungi seconded.

Order, Senators. I will rule accordingly. Let us maintain order.

Let me explain, Mr. Temporary Chairman. There is an amendment from the Senate Majority Leader that four county headquarters; Nyandarua, Tharaka- Nithi, Lamu and Tana River County - that do not have headquarters - be provided an additional Kshs1.6 billion for construction of county headquarters. This will bring the conditional allocation to Kshs33.2 billion and the total to Kshs293 billion. The Temporary Chairperson (

Order, I am in control of the House. I do not think that it is fair that we address the Chairman that aggressively. Mr. Chairman, you were moving that the House doth agree with the Committee on the said Report.

Seconded.

Mr. Deputy Speaker, Sir, I beg to support.

At the same time, I beg to move: THAT,t the Motion be amended by inserting the following words at the end thereof-

“subject to the recommital of the schedule to the committee of the whole.” This amendment relates to the debate and discussion we have just had here. For all intents and purposes, the only argument I have heard from my senior, Sen. Amos Wako, is about a past decision, a past speaker, about ambush.

The issue of the counties where headquarters do not have any facilities at all; where county assemblies are operating from tents; where the Governor is operating from a prefab---. This issue was before this Senate last year. It is something that is well known countrywide. We are not saying that every other county has perfect headquarters but, at least, in most counties, there are some structures to house the governor and the county assemblies; the former local authority premises.

I am pleading with my colleagues, hon. Senators, to kindly help these four counties; Tana River, Lamu, Nyandarua and Tharaka-Nithi. I am begging so that an amount of about Kshs400 million is not too much. I am begging once again that if we intend to give some dignity of Government, indeed, in these counties, that we approve these amendments.

I beg to move.

Hon. Senators, you understand why it is becoming a little bit complicated, but I am sure you are going to bear with me because on the second amendment, the Committee of the Whole decided what it has decided and it has been moved by the Senate Majority Leader.

I am now going to propose a Question which is that the Senate Majority Leader begs to move that the Motion be amended by inserting the following words at the end thereof “subject to the re-committal of the Schedule to the Committee of the Whole”.

This is an unusual procedure because the Chairman of the Committee of the Whole ruled. What it means is that you are going to debate whether or not it should be re- committed to the Committee of the Whole. This Motion does not need to be seconded.

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

Please, Sen. (Dr.) Khalwale, let us try and follow the procedure. I am certain we are going to finalize this sooner than later. Let us not skip any of the steps because the record will show that we skipped certain steps in the procedure.

You said you are appealing, but under which Standing Order?

Thank you Mr. Deputy Speaker, Sir. I support this amendment. In doing so, allow me to bring the House to the status that some of the counties like Nyandarua find themselves in. Whereas today we are going to send a reasonable amount of money - much better than last year - to the counties, some counties, due to historical reasons, found themselves in situations that they are unable to operate because of not having premises from where to operate. When devolution came, the counties were expected to inherit units which were former offices or premises that belonged to the defunct local authorities; the municipal councils and the county councils. To some extent they even inherited offices of the former provincial administration.

What happened is that counties like Nyandarua did not inherit any of those because the historical circumstances were that during era of the provincial administration, for one reason or the other, the Government had established the headquarters of the district in another county. When the counties were started, we found ourselves having to vacate from Nyahuru which is in Laikipia County to a shopping centre in Ol Kalou. The end result of that is that if you attempt to build the headquarters from the funds ordinarily allocated to a county through the formula or the Bill, that county, be it Nyandarua, Tharaka-Nithi, Tana River or Lamu County would then be using funds which are supposed to be for development; what other counties are doing with roads, water and so on.

My appeal to the House is that we should help the four counties. At the moment, our county assembly operates from a church. The Governor rented space in the shopping center above some shops. The end result is that even some services like water, sewerage and so on--- We do not have our county headquarters. Even the investors who would otherwise come to our county will not come to a place where---.

Mr. Deputy Speaker, Sir, I beg and appeal to Members to support the small amendment so that we include a small amount to help the four counties to at least be like other counties. With that, we can move on as one nation.

I do not know how long you want us to debate this particular issue. The originator of this amendment has taken a very short time. I will give each of you two minutes, so that we can be done with this.

Sen. Wako.

Mr. Deputy Speaker, Sir, this problem has been a subject of a Motion passed by this House. When we passed that Motion, the idea was that most of county governments would inherit property of the former provincial administrations. Now, an amendment has been made and passed to state that all properties of the former provincial administrations remain the property of the national government, with a consequence that all counties are in a similar position, but in varying degrees. It appears to me that this is an issue which should be looked into thoroughly. It may very well be that particular counties will get more allocations, while others may get fewer allocations. With that amendment to the legislation, every county including Busia County is suffering.

Mr. Deputy Speaker, Sir, I object.

Order, Senator!

They should have submitted during the Second Reading. The Temporary Chairperson (

Order, Senators! Can you resume your seats and vote? Let me make it clear that for purposes of the amendment provided by Sen. (Eng.) Karue, during reporting we can provide a mechanism for the House to vote to go back to the Committee stage. That is provided for in the Standing Orders. But as at now, let us vote.

I put the Question, that the Schedule be amended as proposed by the Senate Majority Leader and be part of the Bill. That is the amendment as initially proposed by the Chair.

You have 30 seconds to vote, starting now.

Clause 2, Title, Clause 1The Temporary Chairperson (

I now put the question; that Clause 2, the Title and Clause 1 be part of the Bill. You have 30 seconds to vote, starting now.

On a point of order, Mr. Deputy Speaker, Sir. Am I in order, seeing the mood of the House, under Standing Order No.98, to call for the Mover to reply so that we can vote.

Order! I hear you, but I will allow a few more. You can make that application after we have heard a few more.

Sen. Bule.

What is it Sen. (Dr.) Khalwale, you have been very agitated for too long.

Mr. Temporary Chairman, Sir, I am not agitated, for the record, I just want to bring to the attention of the House that while the House was in Session the Chair was making calls on his cell phone. If we want to be taken seriously as a Senate and if the Chair wants to call for order in this House, how will he call for order when he is disorderly? Mr. Temporary Chairman, Sir, we would like you to rule. The Temporary Chairperson (

Order Sen. (Dr.) Khalwale. The Mover should now move. Open the door and draw the Bar. Proceed, Sen. Billow.

Mr. Chairman, I beg to move that the Committee do report to the Senate its consideration of the Division of Revenue Bill (National Assembly Bill No.11 of 2015) and its approval thereof with amendments.

Sen. Murungi seconded.

Sen. G.G. Kariuki, you have two minutes.

Thank you very much, Mr. Deputy Speaker, Sir. This matter is very clear, as it has been said by Sen. Murungi because we passed a resolution here sometimes ago and we all agreed as a House that we shall give Nyandarua and other counties some money to build their headquarters. We all agreed on that issue. But even now, the situation needs not change unless--- Not all county headquarters are up to date; but there are some counties which do not have county headquarters. Therefore, the issue of Nyandarua and Tharaka-Nithi is very disturbing and the public will not understand. Today, we are passing about Kshs291 billion to be distributed to all the counties and here they are looking for Kshs1.8 billion. That is very little money.

Seconded.

Mr. Deputy Speaker, Sir, I beg to support.

At the same time, I beg to move: THAT,t the Motion be amended by inserting the following words at the end thereof-

“subject to the recommital of the schedule to the committee of the whole.” This amendment relates to the debate and discussion we have just had here. For all intents and purposes, the only argument I have heard from my senior, Sen. Amos Wako, is about a past decision, a past speaker, about ambush.

The issue of the counties where headquarters do not have any facilities at all; where county assemblies are operating from tents; where the Governor is operating from a prefab---. This issue was before this Senate last year. It is something that is well known countrywide. We are not saying that every other county has perfect headquarters but, at least, in most counties, there are some structures to house the governor and the county assemblies; the former local authority premises.

I am pleading with my colleagues, hon. Senators, to kindly help these four counties; Tana River, Lamu, Nyandarua and Tharaka-Nithi. I am begging so that an amount of about Kshs400 million is not too much. I am begging once again that if we intend to give some dignity of Government, indeed, in these counties, that we approve these amendments.

I beg to move.

Hon. Senators, you understand why it is becoming a little bit complicated, but I am sure you are going to bear with me because on the second amendment, the Committee of the Whole decided what it has decided and it has been moved by the Senate Majority Leader.

I am now going to propose a Question which is that the Senate Majority Leader begs to move that the Motion be amended by inserting the following words at the end thereof “subject to the re-committal of the Schedule to the Committee of the Whole”.

This is an unusual procedure because the Chairman of the Committee of the Whole ruled. What it means is that you are going to debate whether or not it should be re- committed to the Committee of the Whole. This Motion does not need to be seconded.

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

Hon. Senators, I will now put the Question. This issue does not affect counties, so it is going to be an “aye” or “nay” vote.

An

What about the original question on the report of the Committee?

That is the one I will deal with further on. I will put the Question, which is that, the House do agree with the Committee in the said Report. You would argue that it affects counties but this is intercessory, so it

does not affect counties. Therefore, we do not have to go to Division, unless you ask for the Division after this vote is taken.

The Senate Minority Leader (Sen.Wetangula): On a point of order, Mr. Deputy Speaker, Sir.

Order, Members. I request that you allow us to listen to each other particularly because you are given two minutes only.

Mr. Deputy Speaker, Sir, what I saw was not good. For example, the Governor’s office was rented on top of a bar. In fact, what the hon. Senator has said about the county assembly being in a church compound is true. That is what I saw and believe that they still operate from there.

So, whatever they are asking, even though it is quite late, it is upon this honourable House to see that each and every county functions properly. If we can, at least, through any amendment, assist the four counties, I do not see any harm in that.

Thank you, Mr. Deputy Speaker, Sir, I beg to support that.

Mr. Deputy Speaker, Sir, with all due respect, I rise to oppose. The reason is that the former President, hon. Kibaki and the former Prime Minister, hon. Raila, actually designed a model county assembly and a model county headquarters for the governor. At that time, it was not clear what we would do for the provincial administration. But, as soon as the Jubilee Government came to power, it brought back the provincial administration that was to be done away with. Counties that had hoped that those structures would be inherited are not different from what is obtaining in Tana River and the other three counties.

Mr. Deputy Speaker, Sir, I have physically gone to Homa Bay, Siaya, Taita Taveta headquarters and many other and actually the governors are operating from makeshift structures. In the other counties, there was the start off fund of Kshs62 million through the Transition Authority (TA) , some counties decided to use that money to refurbish the would-be headquarters. All counties require money and the next financial year, let us agree as the Senate and vote money for all the 47 counties.

I oppose.

Sen. Abu Chiaba.

Asante sana, Bw. Naibu Spika, kwa kunipa nafasi hii na mimi katika sauti ya kuomba kwa marafiki zangu kama Sen. Juma Boy Juma ambao walikuwa na bahati ya siku za nyuma, kwamba Kaunti ya Lamu ni ile imekuwa marginalized kwa miaka yote. Governor hana mahali pa kukaa na kwa sasa amekodesha mahali. Mimi niko na ushahidi kamili. Nimeenda na Kamati ya Energy ikiongozwa na Sen. Moi, tulimtembelea governor akiwa na sitting room, room moja, na juu ni mahali analala.

Jambo la kusikitisha ni county assembly. County assembly ni nyumba ya akina mama ambao ni maskini. Hivi sasa wametoa ilani kwa county assembly waondoke. Kwa hivyo msiangalie kwamba siku zilizopita watu wamejenga upande wao. Sisi ambao hatukuwa na uwezo tusaidiane.

Bw. Naibu Spika, Kaunti ya Tana River, mnajua vile ilivyo, watu wakienda kule wanasema hii si Kenya. Kwa hivyo tunaomba kwa unyenyekevu hizi kaunti nne na mimi najua kwamba rafiki yangu, Sen. Wetangula, atapiga kura kuniunga mkono, nitamtangaza

kule ya kwamba yeye ni mmoja katika wale. Akipiga Nyuma ya hapo, basi asahau mambo mengine.

Asante sana.

now. So, I am personally confident that we have done the correct thing as pertains to procedure.

Let me say this for the sake of good order. I am sure you understand my outlook towards these things. As far as I am concerned, I am sure we have dealt with the issue of recommital. The issue of recommital is over. So, we will not recommend that amendment to the Committee of the Whole. So, now we are an open house where we are dealing with the issue of the main Report so that we either pass the Bill or not pass it. That is the position as I see it.

I had proposed a question that the House doth agree with the Committee in the said Report. If there is no debate, I will put the question.

Mr. Deputy Speaker, Sir, I propose that the Division of Revenue Bill be now read a Third Time.

Who is seconding you?

Seconded.

The Senate Minority Leader (Sen. Wetangula) : Thank you Mr. Deputy Speaker, Sir. This is now time for real debate. Now that we are passing this Bill, I want to urge Senators, particularly the oversight committee chaired by Sen. (Dr.) Khalwale and whose Vice Chairperson is Sen. Hassan, that the level of preferage, theft, corruption – we shall not tire in saying this – is very high. Two weeks ago, I met all committees from my county assembly.

Who wants to listen to him? The Senate Minority Leader (Sen. Wetangula) : Sen. Murkomen, you may appear very clever but you have a duty to listen.

The Senate Minority Leader (Sen. Wetangula) : On a point of order, Mr. Deputy Speaker, Sir. Did you hear Sen. Murkomen asking; who wants to listen to him?” That kind of behavior---

I proposed the question. Therefore, the floor is open for debate. As I told you when I communicated to you earlier, you can go on until midnight. The only thing you cannot do is to go beyond midnight.

The Senate Minority Leader (Sen. Wetangula) : We gazetted this day so that we are here to debate.

On a point of order, Mr. Temporary Speaker, Sir. We do agree that this was a Special Sitting and, indeed, Members are entitled to debate, but we are now at the Third Reading Stage and the debate at this stage should not be like the debate on the Second Reading. We should just make one or two comments and sit down. We are begging the Senate Leader of Minority to respect the traditions of the House and not debate as if it is on the Second Reading.

In view of this hour and the biological forces that are operating, I move that the contributors be limited to one minute.

Sen. Wetangula, I will allow you to finish, but you have noted the mood of the House.

The Senate Leader of Minority (Sen. Wetangula) : Mr. Deputy Speaker, Sir, I was not even going to take more than three minutes. I do not know why there is this impatience. Let not our cry for accountability be a ritual. We must make the governors accountable. Our Committee of oversight must liaise with the oversight committees at the counties and find a way of telling them to track the budgets that are implemented so that thefts are stopped.

I finish by advising young Murkomen that as you grow up you will realize the value of listening to others because your right to speak must be equal to your duty to listen to others. You may be too clever by half, but you will find that it does not work.

Thank you, Mr. Deputy Speaker, Sir. I want to confirm that I know the conditions of the headquarters of Tana River because I was a District Commissioner there. We were in Lamu the other day with Sen. Moi; I know about Nyandarua because I was the District Commissioner in Laikipia for many years, and Tharaka-Nithi are my neighbours.

But having said that, Mr. Deputy Speaker, Sir, I want hon. Senators to know that these conditions are not unique to those four counties. Kitui County rents a building from the Ministry of Water and, in fact, you recall that even the Governor had been evicted at one time by the former Minister for Water. All of us here need money to build headquarters and, therefore, I can only support that Motion if there is a further amendment to include all the 47 counties.

Therefore, Mr. Deputy Speaker, Sir, I beg to oppose.

Could the Bars be drawn and the Doors closed?

Hon. Senators, could you log in and vote? This is the final vote for the day. You have one minute to vote. Any Senator who wishes to be assisted can proceed to the Clerk’s Desk.

Thank you very much, Mr. Deputy Speaker, Sir. This matter is very clear, as it has been said by Sen. Murungi because we passed a resolution here sometimes ago and we all agreed as a House that we shall give Nyandarua and other counties some money to build their headquarters. We all agreed on that issue. But even now, the situation needs not change unless--- Not all county headquarters are up to date; but there are some counties which do not have county headquarters. Therefore, the issue of Nyandarua and Tharaka-Nithi is very disturbing and the public will not understand. Today, we are passing about Kshs291 billion to be distributed to all the counties and here they are looking for Kshs1.8 billion. That is very little money.

Hon. Members, I think you better bear with them and we start with them and then in the next budget, we can also appoint a Committee which will go round the county to see all the headquarters and bring a recommended structure which will be agreed by everybody. This is because I am not so sure that there is anyone here who will be saying that he or she is satisfied. Laikipia is in a new place; we have no headquarters there where this House decided it should be the headquarters.

So, Mr. Deputy Speaker, Sir, I beg to---

Order, hon. Senator! Your time is up. Sen. (Dr.) Kuti, are you on a point of order?

Yes, Mr. Deputy Speaker, Sir. Will I be in order to ask the Mover to reply, because the mood is very clear and we cannot change the minds of the people? So, we better just end this matter.

Thank you, Sen. (Dr.) Kuti. I would agree that the position seems to be the position that people are taking, either or. In any case, most of you have now sought the Floor. So, can the Mover reply?

Mr. Deputy Speaker, Sir, this matter has been with this Senate. This is now the third year, if I recall; so, it is not something that is being crafted now by anybody or imagined. These counties have consistently pleaded with this House because this is the House of equalization and the case has been made. I do not think there is need to waste any time, trying to regurgitate the very compelling reasons that have been given for these four cases.

Secondly, Mr. Deputy Speaker, Sir, let me make my last plea to honourable Senators. I plead with you, once more as House of equity and equalization, to approve the request for Nyandarua, Tharaka-Nithi, Tana River and Lamu to put up a modest place with the belief that going forward, we will require a comprehensive overview of the entire country so that, going forward, we can continue to equalize the rest of the counties so that each county can have a place where the organs of its government can sit and deliberate on the issues at the local level.

Mr. Deputy Speaker, Sir, I beg to move.

Hon. Senators, I will now put the Question. This issue does not affect counties, so it is going to be an “aye” or “nay” vote.

An

What about the original question on the report of the Committee?

That is the one I will deal with further on. I will put the Question, which is that, the House do agree with the Committee in the said Report. You would argue that it affects counties but this is intercessory, so it

does not affect counties. Therefore, we do not have to go to Division, unless you ask for the Division after this vote is taken.

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

Sen. Wetangula, I am on my feet. You know you are not supposed to interrupt the Speaker when he is on his feet but I would like us to move on this together so that we understand each other. There is a Motion because the Chairman of the Committee begged to move that the House do agree with the Committee on the said Report. That is what we are dealing with. I proposed the Question that the House do agree with the Committee on the same Report. Then there is the debate on this issue.

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

Order! That is the point at which we are now because we are going to debate or vote on the Motion that we adopt the Report of the Committee. Are we together so far? That is the point at which we are at the moment.

On a point of order, Mr. Deputy Speaker, Sir. I know we are all fatigued but I am concerned that we seem to be losing out on the important issue of procedure. The procedure is, for a Motion to be debated, there must be Notice of Motion given. I am not challenging what has happened but I just wanted us to remember that indeed, there was no Notice of Motion given for us to go ahead to do what we did.

Order Sen. (Dr.) Khalwale, please sit down. I was not here when you were at the Committee Stage. The amendment that has to do with what you are debating, which was like a further amendment to the one that came from the Committee which was given earlier and which we debated and passed, then the Motion that we have been debating by the Senate Majority Leader but from Sen. (Eng.) Muriuki Karue indirectly. Now, that is what you debated.

You debated on an amendment not a Notice of Motion. I do not agree that a Notice of Motion ought to have been given because that time we were at the Committee Stage. I got a Report from the Committee that there was a Motion to re-commit that specific aspect of it again to the Committee of the Whole. That is the point at which we are.

Mr. Deputy Speaker, Sir, would I be in order to request Sen. (Dr.) Khalwale to read Standing Order No.174 (2) , it will answer him.

If you allow me, hon. Senators, as pertains to what we have been dealing with, we have done it procedurally. Since the recommital has been defeated, we will go back to the Report that was made to the Speaker on the decision of the Committee of the Whole. That is the position we are at

now. So, I am personally confident that we have done the correct thing as pertains to procedure.

Let me say this for the sake of good order. I am sure you understand my outlook towards these things. As far as I am concerned, I am sure we have dealt with the issue of recommital. The issue of recommital is over. So, we will not recommend that amendment to the Committee of the Whole. So, now we are an open house where we are dealing with the issue of the main Report so that we either pass the Bill or not pass it. That is the position as I see it.

I had proposed a question that the House doth agree with the Committee in the said Report. If there is no debate, I will put the question.

Mr. Deputy Speaker, Sir, I propose that the Division of Revenue Bill be now read a Third Time.

Who is seconding you?

Seconded. (Question proposed) The Senate Minority Leader (

Thank you Mr. Deputy Speaker, Sir. This is now time for real debate. Now that we are passing this Bill, I want to urge Senators, particularly the oversight committee chaired by Sen. (Dr.) Khalwale and whose Vice Chairperson is Sen. Hassan, that the level of preferage, theft, corruption – we shall not tire in saying this – is very high. Two weeks ago, I met all committees from my county assembly.

Who wants to listen to him? The Senate Minority Leader (

Sen. Murkomen, you may appear very clever but you have a duty to listen. The Senate Minority Leader (

On a point of order, Mr. Deputy Speaker, Sir. Did you hear Sen. Murkomen asking; who wants to listen to him?” That kind of behavior---

I proposed the question. Therefore, the floor is open for debate. As I told you when I communicated to you earlier, you can go on until midnight. The only thing you cannot do is to go beyond midnight. The Senate Minority Leader (

We gazetted this day so that we are here to debate.

On a point of order, Mr. Temporary Speaker, Sir. We do agree that this was a Special Sitting and, indeed, Members are entitled to debate, but we are now at the Third Reading Stage and the debate at this stage should not be like the debate on the Second Reading. We should just make one or two comments and sit down. We are begging the Senate Leader of Minority to respect the traditions of the House and not debate as if it is on the Second Reading.

In view of this hour and the biological forces that are operating, I move that the contributors be limited to one minute.

Sen. Wetangula, I will allow you to finish, but you have noted the mood of the House. The Senate Leader of Minority (

Mr. Deputy Speaker, Sir, I was not even going to take more than three minutes. I do not know why there is this impatience. Let not our cry for accountability be a ritual. We must make the governors accountable. Our Committee of oversight must liaise with the oversight committees at the counties and find a way of telling them to track the budgets that are implemented so that thefts are stopped. I finish by advising young Murkomen that as you grow up you will realize the value of listening to others because your right to speak must be equal to your duty to listen to others. You may be too clever by half, but you will find that it does not work.

Mr. Temporary Speaker, Sir, personally I very disappointed for the fact that we were not given enough time to ventilate on this Bill. I hope next year we shall have ample time to debate and ventilate on this matter.

Could the Bars be drawn and the Doors closed?

Hon. Senators, could you log in and vote? This is the final vote for the day. You have one minute to vote. Any Senator who wishes to be assisted can proceed to the Clerk’s Desk.

AYES: Sen. Billow, Mandera County; Sen. Boy Juma Boy, Kwale County; Sen. Bule, Tana River County; Sen. Chiaba, Lamu County; Sen. Elachi, Nairobi County; Sen.

Hon. Senators, the results are as follows:-

Hon. Senators, we have come to the end of business this afternoon and tonight. Therefore, the House shall stand adjourned until Tuesday, 28th April, 2015, at 2.30 p.m.

The Senate rose at 9.00 p.m.