SPECIAL ISSUE

Kenya Gazette Supplement No. 208 (Bills No. 96)

REPUBLIC OF KENYA
KENYA GAZETTE SUPPLEMENT
BILLS, 2012
NAIROBI, 31st December, 2012
CONTENT
Bill for Introduction into the National Assembly
PAG E
The Transition County Allocation of Revenue Bill, 2012 6177
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PRINTED AND PUBLISHED BY THE G OVERNMENT PRINTER, NAIROBI
6177
THE TRANSITION COUNTY ALLOCATION OF REVENUE
BILL, 2012
ARRANG EMENT OF CLAUSES
Clause
1Short title.
2Interpretation.
3Object and purpose of the Act.
4Allocation of revenue.
5Transfer made in error or fraudulently.
6Application of the Public Finance -Management Act, 2012.
7Report on actual transfers.
8Books of accounts to reflect national government transfers.
9Resolution of disputes and payment of wasteful expenditure.
10Financial misconduct.
11Regulations.
SCHEDULE
6178 The Transition County Allocation of Revenue Bill, 2012
Short ti tle.
Interpretati on.
No. 16of 2011.
No. 1of 2012.
No. 18of 2012.
Object and purpose
of theAct.
Allocati on of
revenue.
A Bill for
AN ACT of Parliament to provide for allocations
for wages and administration costs for the
county executive and county assemblies for the
period commencing March to June, 2013 and
the responsibilities of national and county
governments in relation thereto and for
connected purposes
ENACTED by the Parli ament of Kenya, as follows-
1. (1) Thi s Act may be ci ted as The Transi ti on County
Allocati on of Revenue Act, 2012.
2. In thi s Act, unless the context otherwi se requi res
"Cabi net Secretary" means the Cabi net Secretary
responsi ble for fi nance;
"revenue" has the meani ng assi gned to i t i n secti on 2
of the Commi ssi on on Revenue Allocati on Act, 2011;
"State Organ" has the meani ng assi gned to i t i n Arti cle
260 of the Consti tuti on;
"Transi ti on Authori ty" means the Transi ti on Authori ty
establi shed under secti on 4 of the Transi ti on to Devolved
Government Act, 2012; and
"Wasteful expendi ture" has the meani ng assi gned to i t
i n secti on 2 of the Publi c Fi nance Management Act, 2012.
3. The object and purpose of thi s Act i s to provi de for
the shari ng of revenue rai sed nati onally among the county
governments
(a) for the purpose of wages and admi ni strati on costs
for the county executi ve and county assembli es;
and
(b) to faci li tate the transfer of county allocati ons i n
thi s Act fromthe Consoli dated Fund to the
relevant County Revenue Fund,
for the peri od commenci ng March to J une, 2013.
4. (1) Each county government allocati on for wages
and admi ni strati on costs shall be as set out i n Column B of
the Schedule.
The Transition County Allocation of Revenue Bill, 2012 6179
(2) Each county government's allocation under sub-
section (1), shall be transferred to the respective County
Revenue Fund in accordance with a payment schedule
prepared by the National Treasury in consultation with the
Transition Authority.
(3) Thd allocation for county government functions to
be performed by the national government shall be as set out
in column C of the Schedule.
5. (1) Notwithstanding the provisions of any other
law, where it is determined that the transfer of funds to a
county government or county public entity was done in
error or fraudulently, such a transfer shall be regarded as
not legally due to that county government or county
government public entity, as the case may be.
(2) An erroneous transfer contemplated in sub-section
(1) may be recovered immediately, or may be set-off
against future grant transfers to that county government or
county government public entity.
6. For the avoidance of doubt, the duties of the
National Treasury and County Treasuries shall be as
provided for in the Public Finance Management Act, 2012.
7. The National Treasury shall publish a monthly
report on actual transfers of all allocations to county
governments under this Act.
8. (1) The Transition County Treasury or County
Treasury, as the case maybe, shall reflect all transfers from
the national government in its books of accounts.
(2) A Transition County Treasury or County Treasury
shall, as part of its consolidated quarterly and annual
reports as required by the Public Finance Management Act,
2012, in the format prescribed by the National Treasury,
report on
(a) actual transfers received by the county government
from the national government; and
(b) actual expenditure relating to the transfers, up to
the end of that quarter or year as the case may be.
9. (1) Any State Organ involved in an
intergovernmental dispute regarding any provision of this
Act or any division of revenue or allocation shall, before
Transfers made in
error or
fraudulently.
Application of the
Public Finance
Management Act.
2012.
Report on actual
transfers.
Books of accounts to
reflect national
government
transfers.
No. 18 of 2012.
Resolution of
disputes.
6180 The Transition County Allocation of Revenue Bill, 2012
No.2 of 2012.
Regulations.
instituting court proceedings to resolve such dispute, make
every effort to settle the dispute with the other State Organ
concerned, including exhausting all intergovernmental
alternative mechanisms provided for resolving disputes i n
relevant legislation.
(2) If a court is satisfied that a State Organ, in an
attempt to resolve a dispute has not exhausted all the
mechanisms for alternative dispute resolutions as
contemplated in section 35 of the Intergovernmental
Relations Act, 2012 and refers ,the dispute back for the
reason that the State Organ has not complied with
subsection (1), the expenditure incurred by that State Organ
in approaching the court shall be regarded as wasteful
expenditure.
(3) The costs in respect of wasteful expenditure
referred to in subsection (2) shall, in accordance with a
prescribed procedure, be -recovered without delay from the
person who caused the State Organ not to comply with the
requirements of subsecti on (1).
10. Despi te anythi ng to the contrary contai ned i n any
law, any seri ous or persi stent non-compli ance wi th
provi si ons of thi s Act shall consti tute a fi nanci al
mi sconduct under the Publi c Fi nance Management Act,
2012.
11. The Cabinet Secretary may, by notice in the Kenya
G azette, make regulation regarding
(a) anything which may be prescribed in terms of this
Act; and
(b) any subsidiary or incidental administrative or
procedural matter that it is necessary to prescribe
for the proper implementation or administration of
this Act.
Financial
Misconduct.
No. 18 of 2012.
The Transition County Allocation of Revenue Big 2012 6181
SCHEDULE ( s . 4 )
Co u n t y A l l o c a t i o n s f o r t h e 2 0 1 2 1 1 3 f i n a n c i a l y e a r ( F i g u r e s i n I Cs i t . )
Col umn A Col umn B
Column C = (A-
B)
Count y
Tot al Cost of
Devol ved
Funct i ons
Al l ocat i ons t o be
Transferred t o
Count y
Government s
Immedi at el y Aft er
El ect i ons-
Al l ocat i ons for
Count y
Funct i ons t o be
Peformed by
t he Nat i onal
Government
Baringo 3,105,094,964 144,871,942 2,960,223,022
Bomet 2,429,033,638 127,048,513 2,301,985,125
Bungoma 5,027,062,509 188,056,513 4,839,005,995
Biala 3,338,337,752 159,264,799 3,179,070,953
Elgeyo/Marakwet 2,676,747,712 109,225,085 2,567,522,627
Embu . 3,566,734,212 109,225,085 3,457,509,127
G arissa 3,586,016,332 144 871 942
.
3,441,144,390
Homa Bay 4,799,786,349 173,661,656 4,626,124,693
Isiolo 1,895,411,010 73,578,227 1,821,832,782
Kajiado 2,784,066,116 127,048,513 2,657,617,603
Kakamega 6,416,368,415 231,241,085 6,185,127,330
Kericho 3,487,813,885 144,871,942 . 3,342,941,943
Kiambu 7,531,807,961 231,241,085 7,300,566,876
Kilifi 4,123,451,591 159,266,799 3,964,184,793
Kirinyanga 2,953,052;138 109,225,085 2,843,827,054
Kisii 5,092,748,627 188,06,513 4,904,692,113
Kisumu 5,557,337,405 159,266,799 5,398,070,606
Kitui 4,308,536,527 173,661,656 4,134,874,871
Kwale 2,661,478,334 109,225,085 2,552,253,249
Laildpia - 2,331,998,317 91,401,656 2,240,596,661
Lamu 1,787,192,540 73,578,227 1,713,614,312
Mackiakos 4,937,835,141 173,661,656 4,764,173,485
IvIakueni 3,441,106,487 144,871,942 3,296,234,545
Mandera 2,407,785,507 144,871,942 2,262,913,565
6182 The Transition County Allocation of Revenue Bill, 2012
Column A Column B
Column C = (A-
B)
County
Total Cost of
Devolved
Functions
Allocations to be
Transferred to
County
Governments
Immediately After
Elections
Allocations for
County
Functions to be
Performed by
the National
Government
Marsabi t 2,409,299,308 109,225,085 2,300,074,223
Meru 6,141,982,836 188,056,513 5,953,926,323
Mi gori 4,242,180,870 173,661,656 4,068,519,214
Mombasa 6,094,711,507 144,871,942 5,949,839,565
Muranga 5,049,618,087 159,266,799 4,890,351,288
Nai robi 16,994,802,069 303,215,371 16,691,586,699
Nakuru 7,692,448,399 216,846,228 7,475,602,171
Nandi 2,871,788,615 144,871,942 2,726,916,673
Narok 2,499,805,783 144,871,942 2,354,933,841
Nyami ra
2,394,362,395 109,225,085 2,285,137,310
Nyandarua 3,430,545,508 127,048,513 3,303,496,994
Nyeri 6,835,136,596 144,871,942 6,690,264,655
Samburu 1,725,317,233 91,401,656 1,633,915,577
Si aya
3,786,648,146 144,871,942 3,641,776,204
Tai ta/Taveta 2,203,492,193 109,225,085 2,094,267,108
Tana Ri ver
2,137,955,801 91,401,656 2,046,554,145
Tharaka-Ni thi 1,936,658,603 91,401,656 1,845,256,947
Trans Nzoi a 2,415,478,218 127,048,513 2,288,429,705
Turkana
2,567,173,841 144,871,942 2,422,301;899
Uasi n Gi shu 3,876,401,164 144,871,942 3,731,529,222
Vi hi ga
2,215,009,063 127,048,513 2,087,960,549
Waji r 3,269,410,145 144,871,942 3,124,538,203
West Pokot
2,518,190,841 109,225,085 2,408,965,756
GRAND
TOTAL
185,555,220,690 6,783,568,694 178,771,651,996
The Transition County Allocation of Revenue Hill, 2012 6183
MEMORANDUM OF OBJECTS AND REASONS
The principal object of this Bill is to make provision for allocations
for wages and administration costs for the county executive and county
assemblies for the period March to June, 2013 and the responsibilities of
national and county governments in relation thereto.
Clause 1 of the Bill provides for the short title while clause 2 defines
the various terms used in the Bill.
Clause 3 of the Bill contains the objects and the purpose of the Bill
which is to provide for the sharing of revenue raised nationally among the
county governments and to facilitate the transfer of county allocations in
this Act from the Consolidated Fund to the releVant County Revenue Fund
for the period. March to June 2013.
Clause 4 of the Bill provides for the allocation of revenue to county
govenunents for the purposes of wages and administration costs.
Clauses 5 of the Bill sets out provisions affecting the transfers made
in error or fraudulently.
Clause 7 of the Bill provides for the publishing of monthly reports on
actual transfers of all allocations to county governments by the national
government.
Clause 9 of the Bill provides for the mechanism for resolution of
disputes arising from the provision of this Act or any issue on division or
allocation of revenue to county governments.
Clause 10 of the Bill provides for what constitutes financial
misconduct.
The enactment of this Bill shall occasion additional expenditure of
public funds to be provided for in the annual estimates.
Dated the 31stDecember, 2012.
ROBINSON NJERU G ITHAE,
Minister for Finance.