Senate · Morning Sitting

Wednesday, 2 October 2024

Session Summary

Sen. Tabitha Mutinda outlined the legal debate over county revenue transfers, citing Attorney‑General advice that permits up to 50 % of the previous year’s allocation and detailing recent payments and a Ksh 42 billion absorption shortfall. The Cabinet Secretary for National Treasury responded with revised development budget figures for FY 2022/23, explained the complexity of tracking pending bills and conditional grants, and referenced supporting appendices. Both speakers emphasized the need for timely fund absorption and clearer reporting to counties and Parliament. The Treasury Cabinet Secretary defended the introduction of a variable convenience fee on the e‑Citizen platform, citing service provider costs and an inter‑ministerial decision. Senators questioned the justification for the fees, the government’s control over the e‑Citizen system, whether it operates under a BOT or lease arrangement, and called for audit details of the service provider. The exchange combined explanatory remarks with critical inquiries, reflecting a mixed tone. Senators raised concerns about integrating a new pension management information system with the Integrated Financial Management Information System (IFMIS) to avoid past delays and rent‑seeking practices. The Cabinet Secretary outlined plans to automate pension transfers, centralise statutory deductions, and accelerate IFMIS development to be rolled out by the end of the fiscal year, while also noting public participation in the budgeting process.

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The Speaker (Hon. Kingi)

Clerk, do we have quorum? Serjeant-at-Arms, Kindly ring the Quorum Bell for 10 minutes. Hon. Senators, we do have quorum now. Clerk, you may proceed to call the first Order.

[(The Quorum Bell was rung)]

Aaron Kipkirui Cheruiyot
Sen. CheruiyotUnited Democratic Alliance

Mr. Speaker, Sir, I beg to lay the following Papers on the Table of the Senate, today, Wednesday, 2nd October, 2024.

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The Speaker (Hon. Kingi)

Let us go to the next Order.

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The Speaker (Hon. Kingi)

Hon. Senators, we expected three Cabinet Secretaries this morning for purposes of responding to the Questions as contained in the Order Paper today. However, the question addressed to the Cabinet Secretary for the East African

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The Speaker (Hon. Kingi)

Community (EAC), the Arid and Semi-Arid Lands (ASALs) and Regional Development shall be deferred, pursuant to a letter addressed to the Clerk and made available to the Senate Business Committee (SBC) yesterday when we met. We did deliberate on that particular letter and found it reasonable that the Cabinet Secretary will not be in a positon to attend to this session for purposes of responding to …

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The Speaker (Hon. Kingi)

(The Cabinet Secretary for National Treasury and Economic Planning

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The Temporary Speaker (Sen. Abdul Haji)

Cabinet Secretary, you may proceed. The Cabinet Secretary for the National Treasury and Economic Planning : Thank you, Mr. Temporary Speaker, Sir. I thank Sen. Lemaletian for asking the questions on behalf of the Senator for Kisumu County. I will respond to the questions raised. This is the final question. My answer to Question No.096 (a) is as follows- The annual budgeting processes that are t…

[(Hon. John Mbadi)]

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The Temporary Speaker (Sen. Abdul Haji)

(RBA), Ministry of Investment and Trade Industry. We have a number of them. I have mentioned a few. The reviewed proposals were then submitted to the Cabinet Secretary for consideration and approval. After approval, the proposals were used to develop the Finance Bill, 2024. The National Treasury submitted to the National Assembly the Finance Bill, 2024 for publication in the Kenya Gazette by 30th…

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The Temporary Speaker (Sen. Abdul Haji)

behind target by Kshs18.5 billion. The total revenue collection including Ministerial Appropriation-in-Aid for the period ending August, 2024, that is for the two months, was Kshs373.5 billion, which is 2.3 percent of GDP, against a target of Kshs403.1 billion. This recorded a shortfall of Kshs29.6 billion as shown in the table which I have provided, and I will not read the table because it is a l…

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The Temporary Speaker (Sen. Abdul Haji)

steps taken to stabilise the economy, restore investor confidence and improve the credit rating? I would state as follows: That the credit trading agencies downgraded our country during the peak of the demonstrations and stated that Kenya's fiscal strength is weakening with the loss of Finance Bill, 2024, given the country's high debts and interest payment burdens. They started large fiscal defi…

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The Temporary Speaker (Sen. Abdul Haji)

Thank you, Cabinet Secretary. Sen. Lemaletian, do you have any supplementary questions?

Hezena M. Lemaletian
Sen. LemaletianOrange Democratic Movement

Mr. Temporary Speaker, Sir, I do not have any supplementary questions. I only want to congratulate the Cabinet Secretary for answering these questions satisfactorily. I have a lot of pride and hope that you are going to steer this country forward through the National Treasury. I have no doubt that you are going to reform and revamp that institution. I am sure that you are going to be proudly cel…

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The Temporary Speaker (Sen. Abdul Haji)

Sen. Oketch Gicheru, you have a supplementary question.

Oketch Eddy Gicheru
Sen. Oketch GicheruOrange Democratic Movement

Thank you, Mr. Temporary Speaker, Sir. The Cabinet Secretary has presented a number of questions, including the last submission on the procurement of this e-to-e system that will ensure that there is some prudence in terms of financial management in the country. Facing a lot of audit queries in the counties, we have had several concerns where sometimes the requests at the Controller of Budget (Co…

Oketch Eddy Gicheru
Sen. Oketch GicheruOrange Democratic Movement

If there is any voiding in the system, both IB and IFMIS, sometimes it is very difficult for Senators to understand where the voiding is happening that gives controversy or variances between payments that are requested at the CoB level and the finally audited reports by the Auditor General. I just want to know the case for the impact of this system, if there is any preliminary report in anticipat…

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The Temporary Speaker (Sen. Abdul Haji)

Cabinet Secretary. The Cabinet Secretary for the National Treasury and Economic Planning : Thank you, for the very generous comments from Sen. Lemaletian and the other Senators. Let me address the issues raised by Sen. Oketch Gicheru on the procurement of the e-to-e system and the impact assessment. Yes, there is impact assessment. Maybe, if need be, we may make available information regarding h…

[(Hon. John Mbadi)]

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The Temporary Speaker (Sen. Abdul Haji)

at will. General understanding of how these systems operate is desirable, and that can be dealt with.

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The Temporary Speaker (Sen. Abdul Haji)

Thank you. Hon. Senators, we have reached the end of the Question and answers. Cabinet Secretary, Hon. CPA John Mbadi, let me also take this opportunity to congratulate you for your new appointment as the Cabinet Secretary for National Treasury and Economic Planning, and wish you all the best in your new role. I also thank you for appearing today and having given a very detailed response to the q…

[(The Cabinet Secretary for the National Treasury and Economic Planning (Hon. Mbadi)]

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The Temporary Speaker (Sen. Abdul Haji)

Next Order.

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The Temporary Speaker (Sen. Abdul Haji)

Mover, you may reply.

Margaret Kamar
Sen. (Prof.) KamarJubilee Party

Thank you, Mr. Temporary Speaker, Sir. I start by thanking the Members who contributed to this Motion. The Commonwealth Parliamentary Conference is a very important occasion for members of the Commonwealth to discuss many issues on governance, democracy, and status of various countries. I am very happy that the Members have captured this also in their discussions. I mentioned that out of a presen…

Margaret Kamar
Sen. (Prof.) KamarJubilee Party

Mr. Temporary Speaker, Sir, I do not want to add more because Members contributed very well. Therefore, I beg to move and request that you defer the putting of the question to a later date.

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The Temporary Speaker (Sen. Abdul Haji)

Thank you, Senator. We shall defer putting the question to tomorrow. Next Order.

[(Putting of the Question on the Motion deferred)]

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The Temporary Speaker (Sen. Abdul Haji)

The Motion is deferred. (Motion deferred) Next Order.

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The Temporary Speaker (Sen. Abdul Haji)

Next Order.

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The Temporary Speaker (Sen. Abdul Haji)

respect to whether or not public monies have been applied lawfully and in an effective manner by the county government; NOW THEREFORE, the Senate resolves that -