If a Kenya Citizen, religious leader and media person asked any County Governor or County Representatives, “What bills have you passed so far in 6 months?” I doubt any of the 47 Counties would say, “These are the 17 County bills we have passed from the constitutional powers: (1.) Resource Development based on Constitution Article 185, (2.) Property Rates & Entertainment Taxes based on Constitution article 209 (3) (a) and (b), (3.) Agriculture, (4.) Heath Services, (5.) Pollution, (6.) Culture & Public Entertainment, (7.) County Transport, (8.) Animal Control & Welfare, (9.) Trade development & Regulation, (10.) County Planning & Development, (11.) Pre-Primary Education, (12.) Natural Resources & Environmental conservation, (13.) County public works, (14.) Fire fighting Services & Disaster management, (16.) Control of drugs and pornography, (17.) The (3 – 17) bills based on constitution forth schedule functions and powers of County.
15% minimum allocation to County Government is not the reason millions of Kenyans continue to be trapped in poverty and are jobless. The main reasons are: Not knowing the right direction as reflected in the differing views of leaders like this reported statement, “Taita-Taveta County Governor John Mruttu and Voi MP Jones Mlolwa differed over calls for a referendum to increase funding to the counties.” Second, is not working hard toward finding the right direction.
Diaspora Develop Kenya 2013 – 2017 group would like to urge the Senate and County Governments to first apply the constitution in building up of revenue. We would also like to ask the Kenya Citizens, religious leaders and media to ask their Senators and County Governments to pass the 17 bills as mentioned above before putting the referendum option on the table.
Article 209 creates National Government and County Governments sources of revenue. The national government sources are in Article 209. (1) (a) income tax; (b) value-added tax; (c) customs duties and other duties on import and export goods; and (d) excise tax. The County Government sources are in 209 (3) (a) property rates; (b) entertainment taxes.
Parliament through Senate can have a bill that can freeze additional taxes sourced from income, excise and other taxes by national government. The bill can at the same time empower County Government to start developing their property rates and entertainment taxes through a minimum standard on property rates.
In such a scenario by the end of 2013/2014 National Government can collect Kshs 900 billion through Income tax, VAT, Custom, Excise taxes and other income by national government. The counties through 17 bills passed could end up collecting even Kshs 700 billion from fees, property rates and entertainment taxes as economies in their counties expand.
Developing devolution using this approach where property rates and entertainment taxes grow could mean by 2017-2018 year if the total revenue collection is Kshs 3 trillion, Kshs 900 billion would be by National government and the 47 counties collectively would collect Kshs 2.1 trillion through property rates and entertainment taxes. The national government as required by the constitution would part with 15% and the counties combined revenue would be Kshs 2.235 billion and National Government would be at Kshs 765 billion. Devolution at this point would be developed where an average Kenyan family paying Kshs 1 in taxes would pay 70 cents to the County Governments and further devolved unit of City and Town Government and 30 cents to National Government. Kenya needs development not referendum at this moment.
By Diaspora Develop Kenya 2013-2017 (Chairman, Donald Mwawasi)
(Diaspora Develop Kenya 2013 – 2017 Group advances Diaspora Investment and Development of Kenya ideas. The current Chairman is Donald Mwawasi who was a former aspirant for Taita-Taveta County Senate seat. Email diasporadevelopkenya@gmail.com )
