KENYA GAZETTE SUPPLEMENT

Transcription

1 SPECIAL ISSUE Kenya Gazette Supplement No. 59 (Senate Bills No. 14) REPUBLIC OF KENYA KENYA GAZETTE SUPPLEMENT SENATE BILLS, 2018 NAIROBI, 15th May, 2018 CONTENT Bill for Introduction into the Senate PAGE The Division of Revenue (Amendment) Bill, PRINTED AND PUBLISHED BY THE GOVERNMENT PRINTER, NAIROBI

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3 279 THE DIVISION OF REVENUE (AMENDMENT) BILL, 2018 A Bill for AN ACT of Parliament to amend the Division of Revenue Act, No. 1 of 2018, to provide for additional conditional allocations to the county governments for financial year 2018/2019; and for connected purposes. ENACTED by Parliament of Kenya, as follows- PART I PRELIMINARY This Act may be cited as the Division of Revenue (Amendment) Act, Short title. The Division of Revenue Act, 2018, is amended by deleting the Schedule and substituting therefor the following new Schedule SCHEDULE Amendment of the Sch. to No. 1 of (s.4) Allocation of revenue raised nationally between the national and county governments for the Financial Year 2018/19 Type/Level of Allocation Amount in KSh. A. Total Shareable Revenue 1,688,492,000,000 B. National Government* 1,369,792,000,000 Of which: Leasing of Medical Equipment 9,400,000,000 Compensation for user fees forgone 900,000,000 Level 5 hospitals 4,326,000,000 Supplement for construction of county headquarters 605,000,000 Percentage (%) of 2013/14 audited and approved Revenue i.e. KSh. 935,653 Millions Rehabilitation of Youth Polytechnics 2,000,000,000 C. Equalization Fund 4,700,000,000 05% D. County equitable share 314,000,000, %

4 280 The Division of Revenue (Amendment) Bill, 2018 Type/Level of Allocation Amount in KSh. Percentage (%)of 20 13/14 audited and approved Revenue i.e. KSh. 935,653 Millions Memo items County Equitable Share 314,000,000,000 Additional conditional allocations (National Government share of Revenue) of which: 17,231,000, Leasing of Medical Equipment 9,400,000, Compensation for user fees forgone 900,000, Level 5 hospitals 4,326,000, Supplement for construction of county headquarters 605,000, Rehabilitation of Youth Polytechnics 2,000,000,000 Allocation from Fuel Levy Fund (15%) 8,269,000,000 Conditional allocations (loans & grants) of which: 36,981,384, IDA- Kenya Devolution Support Program (KDSP) 2,300,000, IDA- Kenya Devolution Support Program(KDSP)(Level 2 Grant) 4,000,000, IDA- Transforming Health Systems for Universal Care Project 3,636,589, DANIDA- Universal Healthcare For Devolved System Program 1,012,500, DA- National Agriculture and Rural Inclusive Growth Project (NARIGP) 2,949,138, EU- Instruments for Devolution Advice and Support (IDEAS) 1,040,000, IDA (World Bank)- Kenya Climate Smart Agriculture Project (KCSAP) 3,039,000, JDA(World Bank) credit: Kenya Urban Support Project(KUSP)- Urban Development Grants (UDG) 11,464,702, IDA- Water and Sanitation Development Project (WSDP) 3,800,000, Sweden- Agriculture Sector Development Programme II (ASDP H) 1,005,453, EU- Water Tower Protection and Climate Change Mitigation and Adaptation Programme (WaTER) 880,000, IDA (World Bank) credit: Kenya Urban Support Project (KUSP)- Urban Institutional Grants (UIG) + Bal c/fin FY2017/18 1,854,000,000 Total County Allocations= ( ) 376,481,384, % *The National Government share includes KSh. 4, 300 million which is a special grant to the National Health Insurance Fund (NHIF) for free Maternal health care, to be disbursed as a reimbursement to county governments.

5 The Division of Revenue (Arnendment, 3i11, MEMORANDUM OF OBJECT AND REASONS The principal object of this Bill is to provide for three additional conditional allocations to county governments in FY 2018/19 to be financed by loans and grants from donors. These additional conditional allocations had not been provided for in the Division of Revenue Act, No. 1 of Clause 1 of the Bill provides for the short title f the Bill. Clause 2 of the Bill provides for the replacement of the current Schedule in the Division of Revenue Act, No. 1 of 2018, with a new Schedule. The new Schedule provides for the following additional items- Item 4.10: Agricultural Sector Development Support Programme (ADSP) II- (KSh. 1,005,453,370): Item 4.11: EU Water Tower Protection and Climate Change Mitigation and Adaptation Programme (WaTER) - (KSh. 880 million): and Item 4.12: IDA (World Bank) credit: Kenya Urban Support Project (KUSP) (KSh. 1,854 million). Statement on the delegation of legislative powers and limitation of fundamental rights and freedoms The Bill does not delegate legislative power and does not limit fundamental rights and freedoms. Statement on how the Bill concerns county governments This Bill seeks to amend the Division of Revenue Act, 2018, a Bill enacted pursuant to Article 218 of the Constitution, to provide for additional conditional allocations to the county governments. The Bill is therefore one that concerns county governments in terms of Article 110 (1) (c) of the Constitution. Statement that the Bill is not a money Bill, within the meaning of Article 114 of the Constitution This Bill is not a money Bill within the meaning of Article 114 of the Constitution. Dated the 11th May, MOHAMED M. MAHAMUD, Chairperson, Standing Committee on Finance and Budget.

6 282 The Division of Revenue (Amendment) Bill, 2018 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE (AMENDMENT) BILL, 2018 Background This memorandum has been prepared as an attachment to the Division of Revenue (Amendment) Bill, 2018, in fulfilment of the requirements of Article 218 (2) of the Constitution and section 191 of the Public Finance Management Act, No. 18 of The Memorandum explains the additional conditional allocations to county governments, that this Bill seeks to provide for. These allocations were not provided for in the Division of Revenue Act, 2018 and therefore their purpose vas not explained in the Bill preceding the Division of Revenue Act, No.1 of Additional Conditional Allocations to Counties Article 202 (2) of the Constitution provides for additional allocation to County Governments from the National Government's share of revenue, either conditionally or unconditionally. Pursuant to this Article, the National Government proposes to allocate the following additional conditional allocations from development partners to support specific national policy objectives to be implemented by County Governments. The additional conditional allocations are as follows (1) Agricultural Sector Development Support Programme (ADSP) II (KSh. 1,005,453,370): The Agricultural Sector Development Support Programme II (ASDSP II) follows ASDSP I which concluded in June ASDSP II is part of the implementation strategy of the Agricultural Policy (AP) for the national and county governments. In line with the AP, the overall goal of ASDSP II is to contribute to "transformation of crop, livestock and fishery production into commercially oriented enterprises that ensure sustainable food and nutrition security". The purpose of the programme is "to Develop Sustainable Priority Value Chains (PVCs) for improved income, food and nutrition security". ASDSP II addresses four key problems that hinder commercialization of agriculture i.e. low productivity along the entire PVC, inadequate entrepreneurial skills along PVCs and among service providers, low access to markets by Value Chain

7 The Division of Revenue (Amendment) Bill, Actors (VCAs) and weak and inadequate structures and capacities for consultation, co-operation and coordination within the sector. EU- Water Tower Protection and Climate Change Mitigation and Adaptation Programme (WaTER) - (KSh. 880 million): The objective of this programme is to facilitate the implementation of the national climate change action plan and the master plan for the conservation of water catchment areas of Cherangany Hills and Mount Elgon. The program will improve the quality and quantity of ecosystem services provided by the two water towers, through increased forest cover, improved landscape and natural resource management or waste management systems that will lead to increased benefits to communities from forest, agriculture and agro-forestry land use systems. The program will be implemented in Cherangany Hills and Mount Elgon ecosystems and will include Lake Victoria and Turkana basins. It will also address a number of cross-cutting issues such as climate change, gender equality, good governance and human rights and will benefit the eleven counties, that is, Bungoma, Busia, Elgeyo Marakwet, Kakamega, Kisumu, Nandi, Siaya, Trans Nzoia, Uasin Gishu, Vihiga and West Pokot. IDA (World Bank) credit: Kenya Urban Support Project (KUSP): Urban Institutional Grants (UIG) 2018/19 + Bal c/f in FY 2017/18 (KSh. 1,854 million) - The main purpose of this programme is to provide support to participating County Governments for the formulation of urban development plans including the establishment and operation of urban institutional arrangements such as charters, boards, administrations and operation of urban institutional arrangements and for the initial preparation of urban infrastructure investments.

8 284 The Division of Revenue (Amendment) Bill, 2018 The Schedule of Act No.] of 2018 which it is proposed to amend- Allocation of revenue raised nationally between the national and county governments for the financial year 2018/19 Percentage (%) of 2013/14 audited and Type/level of allocation Amount in KSh. approved Revenue i.e. KSII. 935,653 Millior. A. Total Shareable Revenue 1,688,492,000,000 B. National Government * 1,369,792,000,000 Of which: Leasing of Medical Equipment 9,400,000,000 Compensation for user fees forgone 900,000,000 Level 5 hospitals 4,326,000,000 Supplement for construction of county headquarters 605,000,000 Rehabilitation of Youth Polytechnics 2,000,000,000 C. Equalization Fund 4,700,000, % D. County Equitable Share 314,000,000, % Memo items County equitable share 314,000,000,000 Additional conditional allocations (National Government share of Revenue) of which; Leasing of Medical Equipment 9,400,000, Compensation for user fees forgone 900,000, Level 5 hospitals 4,326,000, Supplement for construction of county headquarters 605,000, Rehabilitation of Youth Polytechnics 2,000,000,000 Allocation from Fuel Levy Fund (15%) 8,269,000,000 Conditional allocations (Loans & grants) of 33,241,930,77 which: IDA-Kenya Devolution Support Program (KDSP) 4.2 ida-kenya Devolution Support Program (KDSP) (Level 2 Grant) 2300,000,000 ' 4000,000,000 ' 4.3 IDA-Transforming Health Systems for ,847 Universal Care Project ' ' 4.4 DANIDA-Universal Healthcare For ,000 Devolved System Program, ' 4.5 ida-national Agriculture & Rural Inclusive ,423 Growth Project (NARIGP) ' ' 4.6 EU-Instruments for Devolution Advice and Support (IDEAS) 1040,000,000 '

9 The Division of Revenue (Amendment) Bill, Percentage (%) of 2013/14 audited and Type/level of allocation Amount in KSh. approved Revenue i.e. KSh. 935,653 Millions 4.7 IDA (World Bank) - Kenya Climate Smart Agriculture_Project_(KCSAP) 3,039,000, World Bank- Kenya Urban Support 11,464,702,50 Program(KUSP) IDA- Water and Sanitation Development 3,800,000,000 Project_(WSDP) Total County Allocations= ( ) 1 372,741,930, % *The National Government share includes KSh. 4,300 million which is a special grant to the National Health Insurance Fund (NHIF) for free Maternal health care, to be disbursed as a reimbursement to county governments. j

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