Presentation on Functions of CRA, National and County Governments

7/30/2019 Presentation on Functions of CRA, National and County Governments

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PRESENTATION TO LAIKIPIA UNIVERSITY COLLEGE

BY

COMMISSION ON REVENUE ALLOCATION

ON TUESDAY, 07 JULY 2012


Promoting an equitable society




A RESOURCE RICH COUNTRY BUT

WITH LOTS OF POOR PEOPLE

KENYA: A LAND OF PARADOX

2



THE CONSTITUTION OF KENYA

ARRANGEMENT OF ARTICLES

PREAMBLE

CHAPTER ONE

SOVEREIGNTY OF THE PEOPLE AND SUPREMACY OF THIS CONSTITUTION 1 Sovereignty of the people.2 Supremacy of this Constitution.3 Defence of this Constitution.

CHAPTER TWOTHE REPUBLIC

4 Declaration of the Republic.5 Territory of Kenya.6 Devolution and access to services.7 National, official and other languages.8 State and religion.9 National symbols and national days.

10 National values and principles of governance.11 Culture.


3




CONTENTS OF THE CONSTITUTION OF KENYA, 2010

CHAPTERS ……………… . 18

ARTICLES ………………… 264

SCHEDULES …………… ... 6

4



IMPORTANT CHAPTERS OF THE CONSTITUTION OF KENYA, 2010

CHAPTERS

3 - CITIZENSHIP4 - BILL OF RIGHTS5 - LAND AND ENVIRONMENT6 - LEADERSHIP AND INTEGRITY 8 - THE LEGISLATURE9 - THE EXECUTIVE10 - JUDICIARY 11 - DEVOLVED GOVERNMENT12 - PUBLIC FINANCES14 - NATIONAL SECURITY 15 - COMMISSIONS AND INDEPENDENT OFFICES


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SCHEDULES OF THE CONSTITUTION OF KENYA, 2010

SCHEDULE

FIRST - LIST OF COUNTIES

SECOND - NATIONAL SYMBOLSTHIRD - NATIONAL OATHS AND AFFIRMATIONS

FOURTH - DISTRIBUTION OF FUNCTIONS BETWEEN THE

NATIONAL GOVERNMENT AND COUNTY

GOVERNMENTS

FIFTH - LEGISLATION TO BE ENACTED BY PARLIAMENT

SIXTH - TRANSITIONAL AND CONSEQUENTIAL PROVISIONS


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7




CHAPTER SIX - LEADERSHIP AND INTEGRITY

RESPONSIBILITIES OF LEADERSHIP

Art. 73. (1) AUTHORITY ASSIGNED TO A STATE OFFICER –

a) IS A PUBLIC TRUST TO BE EXERCISED IN A MANNER THAT –

i. IS CONSISTENT WITH THE PURPOSES AND OBJECTS OF THISCONSTITUTION.

ii. DEMONSTRATES RESPECT FOR PEOPLE

iii. BRINGS HONOUR TO THE NATION AND DIGNITY TO THE OFFICE ; AND

iv. PROMOTES PUBLIC CONFIDENCE IN THE INTEGRITY OF THE OFFICE;

AND

b) VESTS IN THE STATE OFFICER THE RESPONSIBILITY TO SERVE THE PEOPLE ,

RATHER THAN THE POWER TO RULE THEM.

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PROVISIONS ON GENDER EQUALITY IN THE NEW CONSTITUTION

ARTICLE 27

THE STATE SHALL TAKE LEGISLATIVE AND OTHER MEASURES TO

IMPLEMENT THE PRINCIPLE THAT NOT MORE THAN TWO-THIRDS OF THE

MEMBERS OF ELECTIVE OR APPOINTIVE BODIES SHALL BE OF THE SAME

GENDER .


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10

1. A COUNTY ASSEMBLY CONSISTS OF:-

2. MEMBERS ELECTED BY THE REGISTERED VOTERS OF THE WARDS, EACH WARD

CONSTITUTING A SINGLE MEMBER CONSTITUENCY;

3. THE NUMBER OF SPECIAL SEAT MEMBERS NECESSARY TO ENSURE THAT NO

MORE THAN TWO-THIRDS OF THE MEMBERSHIP OF THE ASSEMBLY ARE OF THE

SAME GENDER;

4. THE NUMBER OF MEMBERS OF MARGINALISED GROUPS, INCLUDING PERSONS WITH DISABILITIES AND THE YOUTH, PRESCRIBED BY AN ACT OF PARLIAMENT;

AND

5. THE SPEAKER, WHO IS AN EX OFFICIO MEMBER.

PROVISIONS ON GENDER EQUALITY IN THE NEW CONSTITUTION

MEMBERSHIP OF COUNTY ASSEMBLY ARTICLE 177




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COMMISSION ON REVENUE ALLOCATIONProvincial Premiers of South Africa

1. Eastern Cape

Premier:Noxolo Kiviet

2. Northern Cape

Premier:Hazel Jenkins

3. Western Cape

Premier:Helen Zille

4. North West

Premier:Thandi Modise

5. Gauteng

Premier:Nomvula Mokonyane

6. KwaZulu-Natal

Premier:Zweli Mkhize

7. Limpopo

Premier:Cassel Mathale

8. Mpumalanga

Premier:David Mabuza

9. Free State

Premier:Sekgobelo Magashule

Women 5, Men 4 (55% Women)

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EXTRA FINANCIAL COST OF GENDER INEQUALITY

COUNTY ‘A’ COUNTY ‘B’ Elected - men

- Women2010

30-

Total elected 30 30

ARTICLE 77 (I) (b)Nomination of women - 15Total County Assembly 30 45

SHS. MILLION SHS. MILLION Monthly remuneration

assuming Shs.300,000 permember 9 14

Annual Wage Bill 108 162 Gender Penalty (162-108)

- Annually - Five years (54x5 yrs)

- 54270

ARTICLE 177 (1)( b )

13

MAXIMUM ADDITIONAL WAGE BILL IF WOMEN ARE NOT ELECTED TO ALL COUNTY ASSEMBLIES

1,450 ÷ 1/3 = 484 X 150% = 726 x KSHS. 300,000 = 218Million MONTH, = 2.6 Billion YEAR, = 13.1Billion, OVER 5 YEARS



NATIONAL

CONSTITUENCY

COUNTY

PRESIDENT + DEPUTY

PRESIDENT (2)

MPs (290)

WOMENCOUNTYREP (47)

CABINETMAX (24)

PARLIAMENT(350)

NOMINATEDMP (12 )

CABINETSEC Max (22)

ELECTED, NOMINATED AND APPOINTED OFFICESUNDER KENYA’S NEW CONSTITUTION

NOMINATED APPOINTED

NEW POSITIONSKEY

1

3

2


14



COUNTY

COUNTY

COUNTY

SENATOR (47)

GOVERNOR +DEPUTY

GOVERNOR (2)

WARD REP (1)

SENATE (68)

COUNTYEXEC (12)

COUNTY ASS.MIN. 25

NOMINATED(21)

EXECUTIVEMEMBERS (10)

NOMINATEDMEMBERS

ELECTED, NOMINATED AND APPOINTED OFFICESUNDER KENYA’S NEW CONSTITUTION

NOMINATED APPOINTED

NEW POSITIONS

4

5

6

4* NUMBER OR MINIMUM NOT YET CONFIRMED BY AN ACT OF PARLIAMENT

AT TIME OF PUBLICATION OF THIS SLIDE


15



1. INDEPENDENT, IMPARTIAL, LONG-TERM ADVISOR TO THE

LEGISLATURE AND THE EXECUTIVE.

2. LINKING COUNTY GOVERNMENTS TO NATIONAL DECISION MAKING

ON THEIR FINANCES.

3. FAITHFULLY APPLY THE LAID DOWN CRITERIA FOR SHARING

REVENUE.

RATIONALE FOR THE FORMATION OF THE



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1. RECOMMEND THE BASIS OF EQUITABLE SHARING OF REVENUE

RAISED NATIONALLY BETWEEN NATIONAL AND COUNTY

GOVERNMENTS (ART.216)(1)(B).

2. RECOMMEND THE BASIS OF EQUITABLE SHARING OF REVENUERAISED BY NATIONAL GOVERNMENT AMONG COUNTY GOVERNMENTS

(ART.216)(1)(B).

3. RECOMMEND ON MATTERS CONCERNING THE FINANCING OF

COUNTY GOVERNMENTS (ART.216)(2).

4. RECOMMEND ON MATTERS CONCERNING FINANCIAL MANAGEMENT

OF COUNTY GOVERNMENTS (ART. 216) (2)

CRA FUNCTIONS AS PER THE CONSTITUTION


17



5. DEFINE AND ENHANCE REVENUE SOURCES OF NATIONAL

GOVERNMENT (ART. 216) (3) (B).

6. DEFINE AND ENHANCE REVENUE SOURCES OF NATIONAL AND CUNTY

GOVERNMENTS (ART. 216) (3) (B)

7. ENCOURAGE FISCAL RESPONSIBILITIY BY NATIONAL GOVERNMENT

(ART. 216) (3) (C)

8 . ENCOURAGE FISCAL RESPONSIBILITY BY COUNTY GOVERNMENTS

(ART. 216) (3) (C)

CRA FUNCTIONS AS PER THE CONSTITUTION – CONT.


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9. BE CONSULTED AND RECOMMENDATIONS BE CONSIDERED BEFORE

PARLIAMENT PASSES ANY BILL APPROPRIATING MONEY OUT OF THE

EQUALIZATION FUND (ART. 204) (4)

10 BE CONSULTED ON ANY BILL THAT INCLUDES PROVISIONS DEALING

WITH SHARING OF REVENUE (ART. 205)

11 BE CONSULTED ON ANY BILL THAT INCLUDES PROVISIONS DEALING

WITH ANY FINANCIAL MATTER CONCERNING COUNTY GOVERNMENTS

(ARTICLE. 205)



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12. PUBLISH AND REVIEW THE POLICY THAT SETS OUT CRITERIA FOR IDENTIFYING

MARGINAL AREAS IN ACTUALIZATION OF THE EQUALIZATION FUND (ART. 206)

13. A CRA COMMISSIONER TO PARTICIPATE , BUT SHALL NOT VOTE, IN THE

MEETINGS OF THE COMMISSION FOR IMPLEMENTATION OF CONSTITUTION

(SCHEDULE 6 PART 5 (5)

14. CRA SHALL BE CONSULTED AND THEIR RECOMMENDATIONS CONSIDERED BY

PARLIAMENT FOR ALL LAWS BEING ENACTED RELATING TO DEVOLVED

GOVERNMENT (SCHEDULE 6 PART 14 (1)

NOTE:

RECOMMENDATIONS ARE SUBMITTED TO SENATE , THE NATIONAL ASSEMBLY, THE

NATIONAL EXECUTIVE, COUNTY ASSEMBLY AND COUNTY EXECUTIVE (ART. 216)



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1. FOREIGN AFFAIRS

2. IMMIGRATION AND CITIZENSHIP

3. NATIONAL DEFENCE4. PRIMARY SCHOOLS, SECONDARY SCHOOLS,

TERTIARY EDUCATION AND UNIVERSITIES

5. NATIONAL REFERRAL HEALTH FACILITIES

6. HEALTH POLICY

7. AGRICULTURAL POLICY

FUNCTIONS OF THE NATIONAL GOVERNMENT AS PER THE FOURTH SCHEDULE OF THE CONSTITUTION


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1. AGRICULTURE

2. COUNTY HEALTH SERVICES

3. CONTROL OF POLLUTION

4. CULTURAL ACTIVITIES

5. COUNTY TRANSPORT

6. ANIMAL CONTROL AND WELFARE

7. TRADE DEVELOPMENT AND REGULATION

FUNCTIONS OF THE COUNTY GOVERNMENTS

AS PER THE FOURTH SCHEDULE OF THE CONSTITUTION


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8. COUNTY PLANNING AND DEVELOPMENT

9. PRE-PRIMARY EDUCATION

10. IMPLEMENT SPECIFIC NATIONAL GOVERNMENT POLICIES

11. COUNTY PUBLIC WORKS

12. FIRE FIGHTING SERVICES AND DISASTER MANAGEMENT

13. CONTROL OF DRUG AND PORNOGRAPHY

14. ENSURING AND COORDINATING COMMUNITIES PARTICIPATION INGOVERNANCE

FUNCTIONS OF THE COUNTY GOVERNMENTS

AS PER THE FOURTH SCHEDULE OF THE CONSTITUTION – CONT.


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AGRICULTURE is the backbone of Kenya’s economy and is a COUNTY FUNCTION

Failed Maize Crop - Kenya

Mrs. Mwende Wambua FarmKilala Makueni County

Maize Irrigation – S. Africa

Mr. Roy Van Kruger FarmOrange Free State

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Health for all is paramount for healthy andproductive society. It is a COUNTY Function exceptfor National Referral facilities.

HOSPITALS

b. .

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EXPECTED BENEFITS OF DEVOLUTION

1. EQUITABLE ALLOCATION OF RESOURCES.

2. IMPROVED DELIVERY OF PUBLIC SERVICES

3. INCREASED ECONOMIC ACTIVITY IN THE COUNTY GOVERNMENTS.

4. REDUCED POLITICAL TENSIONS IN THE COUNTRY.


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POOR SERVICES IN PUBLIC HOSPITALS IMPROVED SERVICES IN PUBLIC HOSPITALS


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POTENTIAL CHALLENGES TO A DEVOLVED SYSTEM OFGOVERNMENT

1. INADEQUATE PREPARATION .

2. HUGE WAGE BILL AND OTHER ADMINISTRATIVE EXPENSES.

3. INADEQUATE HUMAN CAPACITY IN COUNTY GOVERNMENTS.

4. POOR GOVERNANCE .

5. OVER-DEPENDENCY ON ALLOCATION FROM NATIONAL GOVERNMENT.


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29




100%

> 15%

REVENUERAISED NATIONALLY

100%

COUNTIES SHARE


< 84.5%

NATIONAL SHARE

0.5%

EQUALIZATIONFUND

FORMULA

SHARING AMONG 47 COUNTY GOVERNMENTS

SHARING OF REVENUE RAISED NATIONALLY

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BASIS (FORMULA) OF DIVISION OF REVENUE RAISED NATIONALLY

PROCESS OF APPROVING THE FORMULA BY (SENATE,) NATIONAL ASSEMBLY

31




RECOMMENDATIONS ON SHARING REVENUE RAISED NATIONALLY BETWEEN THENATIONAL AND COUNTY GOVERNMENTS FOR FINANCIAL YEAR 2012-2013

SHAREABLE AUDITED REVENUE FOR 2010-2011 = SHS.610 BILLION

COUNTY GOVERNMENT SHS.203

BILLION

33%

NATIONAL GOVERNMENTSHS.407 BILLION

67%

32



1. GIVES EFFECT TO THE PROVISIONS OF THE CONSTITUTION

2. AS SIMPLE AS POSSIBLE ;

3. BASED ON AVAILABLE OFFICIAL DATA ;

4. HAS INCENTIVES FOR EFFICIENT FISCAL MANAGEMENT;

5. MINIMISE INEQUALITIES AMONG COUNTIES.


ATTRIBUTES OF A GOOD REVENUE SHARING

FORMULA AMONG COUNTY GOVERNMENTS

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1. POPULATION

2. POVERTY INDEX

3. LAND AREA

4. BASIC SHARE

5. FISCAL RESPONSIBILITY


PARAMETERS CHOSEN FOR SHARING AMONG

COUNTY GOVERNMENTS

34




POPULATION

• USE OFFICIAL DATA FROM K.N.B.S

• THE SELECTION IS BASED ON TWO FACTORS:-

COST OF SERVICES DEPEND ON POPULATIONSIZE

PROMOTION OF EQUITABLE SOCIETY ON PER CAPITA BASIS

35




POVERTY

• USE OFFICIAL DATA FROM K.N.B.S

• SELECTION OF POVERTY INDEX IS BASEDON:-

POVERTY COMPONENT TREATS EVERY POOR KENYAN EQUALLY IRRESPECTIVEOF LOCATION

36





MAMA EKAI

37





URBAN POVERTY

38





URBAN DECAY

39




BASIC EQUAL SHARE

• EVERY COUNTY HAS FIXED EXPENSESIRRESPECTIVE OF SIZE, POPULATION AND POVERTY LEVELS

40




LAND SIZE• USE OFFICIAL DATA FROM K.N.B.S• COST OF SERVICE DELIVERY DEPENDS ON

THE SIZE OF A COUNTY • TO ENSURE EQUITY,PLACED MINIMUM

AND MAXIMUM CONTRIBUTION TO TOTALLAND MASS AT 1% AND 10% RESPECTIVELY

• BINDING INTRODUCES AFFIRMATIVE ACTION IN FAVOUR OF VERY SMALLCOUNTIES

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FISCAL RESPONSIBILITY

• BUILDS FINANCIAL PERFORMANCEINCENTIVE MECHANISM THAT WILLENSURE;

FISCAL MANAGEMENT

EXPLOITATION OF REVENUE POTENTIAL

• INITIAL EQUAL WEIGHT SINCE THERE ARENO HISTORICAL FISCAL PERFORMANCEEVALUATION MEASURES

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HOW ARE WEIGHTS ASSIGNED?

1. EXTENT TO WHICH A PARAMETER GIVES

EFFECT TO THE PROVISIONS OF THECONSTITUTION ;

2. SIMULATIONS – RUN SEVERAL SCENARIOS

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SUMMARY

PARAMETER %

POPULATION 60

EQUAL SHARE 20

POVERTY 12

LAND AREA 6

FISCAL RESPONSIBILITY 2

TOTAL 100

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PARAMETER, WEIGHTS AND AMOUNTS A SAMPLE YEAR: KSH.200 BILLION


PARAMETER % KSHS1. POPULATION 60% 120,000,000,000

2. EQUAL SHARE 20% 40,000,000,000

3. LEVELS OF POVERTY 12% 24,000,000,000

4. LAND AREA 6% 12,000,000,000

5. FISCAL RESPONSIBILITY 2% 4,000,000,000

TOTAL 100 200,000,000,000

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COMMISSION ON REVENUE ALLOCATIONTOTAL EQUITABLE SHARE TO EACH COUNTY GOVERNMENT

A SAMPLE YEAR: 200 BILLION

COUNTY ALLOCATIONBASED ONPOPULATIONKSHS.MILLION

EQUALSHAREKSHS.MILLION

POVERTY KSHS.MILLION

LAND AREA KSHS.MILLION

FISCAL RES-PONSIBILITY KSHS.MILLION

TOTAL ALLOC.KSHS.MILLION

1 NAIROBICITY 9,754 851 904 107 85 11,702

2 KAKAMEGA

5,161 851 1,133 107 85 7,3383 BUNGOMA 5,069 851 1,115 107 85 7,2284 NAKURU 4,983 851 877 139 85 6,936

44 TAITA-

TAVETA 885 851 204 317 85 2,343

45 SAMBURU 696 851 228 390 85 2,25146 ISIOLO 445 851 118 471 85 1,97147 LAMU 316 851 41 117 85 1,409

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COMMISSION ON REVENUE ALLOCATIONPER CAPITAL ALLOCATION FOR EACH COUNTY GOVERNMENT

A SAMPLE YEAR: KSHS.200 BILLION

COUNTY TOTALPOPULATIONTHOUSAND

TOTAL ALLOC.KSHS. MILLION KSHS PER HEAD ALLOCATION

1 LAMU 102 1,409 13,8762 ISIOLO 143 1,971 13,752

3 MARSABIT 291 3,223 11,0704 TANA-

RIVER 240 2,633 10,969

44 NAKURU 1,603 6,936 4,32645 MERU 1,356 5,769 4,25346 KIAMBU 1,623 6,574 4,05047 NAIROBI

CITY 3,138 11,703 3,729

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COMMISSION ON REVENUE ALLOCATIONBAR CHARTS OF ALLOCATION TO EACH COUNTY

0

2,000,000,000

4,000,000,000

6,000,000,000

8,000,000,000

10,000,000,000

12,000,000,000

14,000,000,000

N A I R O B I C I T Y

K A K A M E G A

B U N G O M A

N A K U R U

T A I T A - T

A V E T A

S A M B U R U

I S I O L O

L A M U

LAND AREA

POVERTY

POPULATION

FISCAL RESPONSIBILITY

EQUAL SHARE

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COMMISSION ON REVENUE ALLOCATIONBAR CHARTS OF PER CAPITAL ALLOCATION BY COUNTY

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

L A M U

I S I O L O

M A R S A B I T

T A N A - R

I V E R

N A K U R U

M E R U

K I A M B U

N A I R O B I C I T Y

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THANK YOU

Presentation on Functions of CRA, National and County Governments

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