PRESENTATION TO THE 20 TH I.C.P.A.K ECONOMIC · PDF file · 2015-09-19presentation...
Transcript of PRESENTATION TO THE 20 TH I.C.P.A.K ECONOMIC · PDF file · 2015-09-19presentation...
COMMISSION ON REVENUE ALLOCATION
PRESENTATION TO THE 20TH I.C.P.A.K ECONOMIC
SYMPOSIUM ON 22ND FEBRUARY, 2012
BY
MICAH CHESEREM
CHAIRMAN, CRA
STRUCTURES AND CHALLENGES
OF KENYA’S
COMMISSION ON REVENUE ALLOCATION
OF KENYA’S
DEVOLVED GOVERNMENT
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COMMISSION ON REVENUE ALLOCATION
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) DEMONSTRATES RESPECT FOR PEOPLE
(ii) BRINGS HONOUR TO THE NATION AND DIGNITY TO THE OFFICE;
ANDAND
(iii) 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
COMMISSION ON REVENUE ALLOCATION
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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MEMBERSHIP OF COUNTY ASSEMBLY
ARTICLE 177
(1) A COUNTY ASSEMBLY CONSISTS OF :-
a) MEMBERS ELECTED BY THE REGISTERED VOTERS OF THE WARD
COMMISSION ON REVENUE ALLOCATION
b) 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;
c) THE NUMBER OF MEMBERS OF MARGINALISED GROUPS.
d) THE SPEAKER, WHO IS AN EX OFFICIO MEMBER.
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NATIONALPRESIDENT +
DEPUTY PRESIDENT (2)
CABINET MAX (24)
CABINET SEC Max (22)
ELECTED, NOMINATED AND APPOINTED OFFICES UNDER KENYA’S NEW CONSTITUTION
NOMINATED APPOINTED
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COMMISSION ON REVENUE ALLOCATION
CONSTITUENCY
COUNTY
MPs (290)
WOMEN COUNTY REP (47)
PARLIAMENT (350)
NOMINATED MP (12)
NEW POSITIONSKEY
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2
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COUNTY SENATOR (47) SENATE (68)NOMINATED
(21)
ELECTED, NOMINATED AND APPOINTED OFFICES UNDER KENYA’S NEW CONSTITUTION
NOMINATED APPOINTED
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COMMISSION ON REVENUE ALLOCATION
COUNTY
COUNTY
GOVERNOR + DEPUTY
GOVERNOR (2)
WARD REP (1)
COUNTY EXEC (12)
COUNTY ASS. MIN. 25
EXECUTIVE MEMBERS (10)
NOMINATED MEMBERS
NEW POSITIONS
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4* NUMBER OR MINIMUM NOT YET CONFIRMED BY AN ACT OF PARLIAMENT
AT TIME OF PUBLICATION OF THIS SLIDE
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1. INDEPENDENT, IMPARTIAL, LONG-TERM ADVISOR TO THE
LEGISLATURE AND THE EXECUTIVE.
2. TO PROVIDE TECHNICAL ADVICE ON COMPLEX FINANCIAL MATTERS
RATIONALE FOR THE FORMATION OF THE
COMMISSION ON REVENUE ALLOCATION
COMMISSION ON REVENUE ALLOCATION
2. TO PROVIDE TECHNICAL ADVICE ON COMPLEX FINANCIAL MATTERS
IN A DEVOLVED SYSTEM
3. LINKING COUNTY GOVERNMENTS TO NATIONAL DECISION MAKING
ON THEIR FINANCES.
4. FAITHFULLY APPLY THE LAID DOWN CRITERIA FOR SHARING
REVENUE.
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1. RECOMMEND THE BASIS OF EQUITABLE SHARING OF REVENUE
RAISED NATIONALLY BETWEEN NATIONAL AND COUNTY
GOVERNMENTS (ART.216)(1)(B).
CRA FUNCTIONS AS PER THE CONSTITUTION
COMMISSION ON REVENUE ALLOCATION
2. RECOMMEND THE BASIS OF EQUITABLE SHARING OF REVENUE
RAISED BY NATIONAL GOVERNMENT AMONG COUNTY GOVERNMENTS
(ART.216)(1)(B).
3. RECOMMEND ON MATTERS CONCERNING THE FINANCING OF
COUNTY GOVERNMENTS (ART.216)(2).
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4. RECOMMEND ON MATTERS CONCERNING FINANCIAL MANAGEMENT
OF COUNTY GOVERNMENTS (ART. 216) (2)
CRA FUNCTIONS AS PER THE CONSTITUTION Cont…
COMMISSION ON REVENUE ALLOCATION
5. DEFINE AND ENHANCE REVENUE SOURCES OF NATIONAL AND
COUNTY GOVERNMENTS. (ART. 216) (3)(C)
6. RECOMMEND ON APPROPRIATING OF MONEY OUT FO THE
EQUALIZATION FUND
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1. FOREIGN AFFAIRS.
2. IMMIGRATION. AND CITIZENSHIP.
3. NATIONAL DEFENCE.
FUNCTIONS OF THE NATIONAL GOVERNMENT
AS PER SCHEDULE 4 OF THE CONSTITUTION
COMMISSION ON REVENUE ALLOCATION
3. NATIONAL DEFENCE.
4. MONETARY POLICY.
5. PRIMARY SCHOOLS, SECONDARY SCHOOLS, TERTIARY EDUCATION
AND UNIVERSITIES.
6. NATIONAL REFERRAL HEALTH FACILITIES.
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7. NATIONAL ELECTIONS.
8. HEALTHY POLICY.
FUNCTIONS OF THE NATIONAL GOVERNMENT
AS PER SCHEDULE 4 OF THE CONSTITUTION
COMMISSION ON REVENUE ALLOCATION
9. AGRICULTURAL POLICY.
10. CAPACITY BUILDING AND TECHNICAL ASSISTANCE TO THE COUNTIES.
11. PUBLIC INVESTMENT.
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1. AGRICULTURE
2. COUNTY HEALTH SERVICES
3. CONTROL OF POLLUTION
4. CULTURAL ACTIVITIES
FUNCTIONS OF THE COUNTY GOVERNMENTS
AS PER SCHEDULE 4 OF THE CONSTITUTION
COMMISSION ON REVENUE ALLOCATION
4. CULTURAL ACTIVITIES
5. COUNTY TRANSPORT
6. ANIMAL CONTROL AND WELFARE
7. TRADE DEVELOPMENT AND REGULATION
8. COUNTY PLANNING AND DEVELOPMENT
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9. PRE-PRIMARY EDUCATION
10. IMPLEMENT SPECIFIC NATIONAL GOVERNMENT POLICIES
11. COUNTY PUBLIC WORKS
FUNCTIONS OF THE COUNTY GOVERNMENTS
AS PER SCHEDULE 4 OF THE CONSTITUTION
COMMISSION ON REVENUE ALLOCATION
11. COUNTY PUBLIC WORKS
12. FIRE FIGHTING SERVICES AND DISASTER MANAGEMENT
13. CONTROL OF DRUGS AND PORNOGRAPHY
14. ENSURING AND CORDINATING COMMUNITIES PARTICIPATION IN
GOVERNANCE.
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COMMISSION ON REVENUE ALLOCATION
PROPOSED CRITERIA FOR SHARING REVENUE
EQUAL SHARE 15 - 20% 1 OF 5
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HOMA-BAY
KISUMU
KITUI
MANDERA
MACHAKOS
KILIFI
KISII
MERU
NAKURU
KIAMBU
BUNGOMA
KAKAMEGA
NAIROBI
Counties
COMMISSION ON REVENUE ALLOCATION
PROPOSED CRITERIA FOR SHARING REVENUE
0 0.5 1 1.5 2 2.5 3 3.5
NANDI
KERICHO
TRANS-NZOIA
SIAYA
NAROK
TURKANA
MAKUENI
UASIN-GISHU
MIGORI
MOMBASA
MURANG'A
HOMA-BAY
Population (Millions)
Counties
POPULATION 50 – 70% 2 OF 5
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EMBU
KIRINYAGA
VIHIGA
BARINGO
NYANDARUA
NYAMIRA
GARISSA
KWALE
WAJIR
KAJIADO
NYERI
BOMET
Counties
COMMISSION ON REVENUE ALLOCATION
PROPOSED CRITERIA FOR SHARING REVENUE
0 0.5 1 1.5 2 2.5 3
LAMU
ISIOLO
SAMBURU
TANA-RIVER
TAITA-TAVETA
MARSABIT
THARAKA-NITHI
ELGEYO-MARAKWET
LAIKIPIA
BUSIA
WEST POKOT
EMBU
Population(Millions)
Counties
2 OF 5POPULATION 50 – 70%
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ISIOLO
BUSIA
WEST POKOT
TANA-RIVER
MARSABIT
MANDERA
Counties
COMMISSION ON REVENUE ALLOCATION
PROPOSED CRITERIA FOR SHARING REVENUE
3 OF 5
0 10 20 30 40 50 60 70 80 90 100
BOMET
TRANS-NZOIA
BUNGOMA
TAITA-TAVETA
MACHAKOS
KISII
Poverty Rate(%)
Counties
LEVELS OF POVERTY 10 – 20%
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MOMBASA
KERICHO
EMBU
VIHIGA
NAKURU
HOMA-BAY
UASIN-GISHU
KISUMU
MIGORI
NYAMIRA
NANDI
LAIKIPIA
Counties
COMMISSION ON REVENUE ALLOCATION
PROPOSED CRITERIA FOR SHARING REVENUE
3 OF 5
0 10 20 30 40 50 60 70 80 90
KAJIADO
NAIROBI
KIAMBU
KIRINYAGA
MERU
LAMU
NYERI
MURANG'A
NAROK
SIAYA
THARAKA-NITHI
MOMBASA
Poverty rate(%)
Counties
LEVELS OF POVERTY 10 – 20%22
KILIFI
TAITA-TAVETA
NAROK
SAMBURU
KAJIADO
ISIOLO
MANDERA
KITUI
TANA-RIVER
GARISSA
WAJIR
TURKANA
MARSABIT
Counties
COMMISSION ON REVENUE ALLOCATION
PROPOSED CRITERIA FOR SHARING REVENUE
4 OF 5
0 2 4 6 8 10 12 14
UASIN-GISHU
BUNGOMA
MACHAKOS
LAMU
MERU
NAKURU
MAKUENI
KWALE
WEST POKOT
LAIKIPIA
BARINGO
KILIFI
Land Area(%)
Counties
LAND AREA 3 - 8%
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KIAMBU
MIGORI
EMBU
ELGEYO-MARAKWET
HOMA-BAY
NYERI
Counties
COMMISSION ON REVENUE ALLOCATION
PROPOSED CRITERIA FOR SHARING REVENUE
4 OF 5
0 2 4 6 8 10 12
MOMBASA
NAIROBI
BUSIA
KIRINYAGA
BOMET
TRANS-NZOIA
Land Area(%)
Counties
LAND AREA 3 - 8%
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COMMISSION ON REVENUE ALLOCATION
PROPOSED CRITERIA FOR SHARING REVENUE
5 OF 5FISCAL RESPONSIBILITY 1% - 3%
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EXPECTED BENEFITS OF DEVOLUTION
1. EQUITABLE ALLOCATION OF RESOURCES.
2. IMPROVED DELIVERY OF PUBLIC SERVICES
COMMISSION ON REVENUE ALLOCATION
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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COMMISSION ON REVENUE ALLOCATION
POOR SERVICES IN PUBLIC HOSPITALS IMPROVED SERVICES IN PUBLIC HOSPITALS
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POTENTIAL CHALLENGES TO A DEVOLVED SYSTEM OF
GOVERNMENT
1. INADEQUATE PREPARATION.
2. HUGE WAGE BILL AND OTHER ADMINISTRATIVE EXPENSES.
3. INADEQUATE HUMAN CAPACITY IN COUNTY GOVERNMENTS.
COMMISSION ON REVENUE ALLOCATION
3. INADEQUATE HUMAN CAPACITY IN COUNTY GOVERNMENTS.
4. POOR GOVERNANCE.
5. OVER-DEPENDENCY ON ALLOCATION FROM NATIONAL GOVERNMENT.
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KENYA TZ UG S. KOREA
NATIONALPOPULATION
41.1 M 43.2 M 32.4 M 62.3 M
GDP(PPP) $ 70.57 B $ 57.40 B $ 42.19 B $ 1.56 T
GOVERNMENT WAGE BILL AS A PERCENTAGE OF GDP
COMMISSION ON REVENUE ALLOCATION
GDP(PPP) $ 70.57 B $ 57.40 B $ 42.19 B $ 1.56 T
Civil Service wage bill as a % of GDP
8.4% 4.3 % 5.7% 3.4 %
• The average for Sub- Saharan Africa is 6%• Source-World Bank
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MPs, GOVERNORS AND SENATORS –Is Cost of Kenya’s leadership burden sustainable?
KENYA USA
POPULATION 41,000,000 311,000,000
COMMISSION ON REVENUE ALLOCATION
POPULATION 41,000,000 311,000,000
MPs / HOUSE OF
REPRESENTATIVES350 - 400 435
SENATORS 70 100
GOVERNORS 47 51
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POTENTIAL CHALLENGES TO A DEVOLVED SYSTEM OF
GOVERNMENT
6. CONFLICTS AMONG/BETWEEN NATIONAL AND COUNTY GOVERNMENTS.
- INSIDE THE CABINET.
- PRESIDENT VS PARLIAMENT/SENATE.
- PARLIAMENT VS SENATE.
COMMISSION ON REVENUE ALLOCATION
- PARLIAMENT VS SENATE.
- PRESIDENT VS GOVERNORS
7. TENSIONS INSIDE COUNTY GOVERNMENTS.
- INSIDE THE COUNTY EXECUTIVE
- COUNTY EXECUTIVE VS COUNTY ASSEMBLIES
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OUTSTANDING ACTIONS IN PREPARATION FOR COUNTY
GOVERNMENTS
1. PROPOSED NEW REMUNERATION FOR SENIOR PUBLIC
OFFICIALS.
2. DECISIONS ON FUNCTIONS TO BE DEVOLVED OVER THREE
COMMISSION ON REVENUE ALLOCATION
2. DECISIONS ON FUNCTIONS TO BE DEVOLVED OVER THREE
YEARS.
3. IDENTIFICATION AND RENOVATION OF OFFICES FOR COUNTY
EXECUTIVE.
4. IDENTIFICATIO AND RENOVATION OF COUNTY ASSEMBLY
HALLS
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OUTSTANDING ACTIONS IN PREPARATION FOR COUNTY
GOVERNMENTS cont’d
5. SELECT AND TRAIN KEY STAFF TO BE SECONDED TO
COUNTIES:
•COUNTY HEADS OF PUBLIC SERVICE
• CLERKS TO COUNTY ASSEMBLIES
• COUNTY TREASURERS
COMMISSION ON REVENUE ALLOCATION
• COUNTY TREASURERS
• COUNTY I.C.T. MANAGERS
• COUNTY AUDITORS
6. COMMENCE RESTRUCTURING OF THE PROVINCIAL
ADMINISTRATION.
7. SET UP I.T. SYSTEMS FOR FINANCIAL AND OTHER SERVICES.
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OUTSTANDING ACTIONS IN PREPARATION FOR COUNTY
GOVERNMENTS cont’d
8. COMMENCE COUNTRYWIDE CIVIC EDUCATION, INCLUDE FOR
CIVIL SERVANTS.
9. BRIEF CIVIL SERVANTS WHO WILL BE TRANSFERRED TO
COUNTIES
COMMISSION ON REVENUE ALLOCATION
COUNTIES
10.DECISION TO BE MADE ON COUNTY CAPITALS WHERE
DISPUTES PERSIST.
11. AGREE PROCESS OF ABSORBING LOCAL GOVERNMENT STAFF
TO COUNTIES.
NOTE: TRANSITION TO DEVOLVED GOVERNMENT BILL 2011
(PROPOSED TRANSITIONAL AUTHORITY))
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