In a significant move towards enhancing legislative efficiency, the Mediation Committee on Division of Revenue (Amendment) Bill, (National Assembly Bill No. 38 of 2024) held its second meeting on Tuesday, 12th November 2024, in a meeting where Kenya’s bicameral parliament is gaining momentum on the Amendment of the Appropriations Bill, which aims to reshape the budgetary process and strengthen the Senate’s role in financial governance. The proposed changes are encapsulated in the Constitution of Kenya (Amendment) (No. 2) Bill, 2024, which seeks to amend several articles to facilitate a more collaborative approach between the National Assembly and the Senate.
Mandera Senator Ali Roba (right) alongside Kiharu MP Ndindi Nyoro (left) co-chairing an 18-member Mediation Committee on the Division of Revenue (Amendment) Bill, 2024
The proposed amendments primarily focus on the procedural aspects of how appropriation bills are handled within parliament. Currently, appropriation bills originate in the National Assembly, but under the new proposal, both houses would have equal authority to amend these bills. This change ensures that county interests are adequately represented in budget allocations. One of the pivotal changes includes amending Article 114 of the Constitution to clarify the definition of a money bill, limiting it strictly to tax-related matters. This amendment aims to eliminate ambiguities that have previously led to disputes over what constitutes a money bill, thereby streamlining legislative processes.
Kiharu MP and National Assembly Budget and Appropriations Committee chairperson Ndindi Nyoro during the Mediation Committee on the Division of Revenue (Amendment) Bill, 2024
Another significant provision is the introduction of a new Article 111A, which outlines that an Appropriation Bill or Supplementary Appropriation Bill will follow similar procedures as other bills. This includes provisions for amendments and vetoes by both houses, requiring a two-thirds majority from county delegations in the Senate for any changes to be enacted. If either house fails to pass a resolution regarding amendments, the bill will be sent directly to the President for assent.
Mandera Senator Ali Roba during the Mediation Committee on the Division of Revenue (Amendment) Bill, 2024
The implications of these amendments are profound. By allowing both houses to participate more actively in budgetary processes, the reforms aim to foster a sense of ownership among senators regarding national revenue distribution. This collaborative approach is expected to enhance transparency and accountability in how public funds are allocated and spent. Moreover, these changes come at a time when Kenya faces significant fiscal challenges. The recent Supplementary Appropriation (No. 2) Act, signed into law by President William Ruto on August 5, 2024, reflects a need for adjustments in government spending due to a revenue shortfall of approximately KShs. 344.3 billion. The Act introduced reductions across various sectors while reallocating funds to critical areas such as agriculture and education.
The proposed amendments have elicited varied responses from stakeholders. Supporters argue that empowering the Senate will lead to more equitable resource distribution among counties, addressing long-standing grievances regarding marginalization in budget allocations. They believe that this reform could significantly improve service delivery at the county level. Conversely, critics express concerns about potential gridlock between the two houses if disagreements arise over budgetary decisions. They fear that increased power for the Senate might complicate what is already a challenging legislative environment.
As discussions continue in both houses, parliamentary committees are set to review the proposed amendments further. Lawmakers are expected to engage with constituents and interest groups to gather feedback on how these changes might affect various sectors. The timeline for passing these amendments remains uncertain; however, proponents are optimistic that with bipartisan support, they can navigate through potential hurdles and achieve consensus on this critical issue.
The Amendment of the Appropriations Bill represents a crucial step towards enhancing Kenya’s legislative framework concerning budgetary processes. By fostering collaboration between the National Assembly and Senate, these reforms aim not only to improve governance but also to ensure that all Kenyans benefit equitably from national resources. As Kenya navigates its fiscal challenges, these legislative changes could pave the way for more responsive and accountable governance that meets the needs of its citizens effectively.
As this legislative journey unfolds, all eyes will be on Kenya’s parliament as it seeks to redefine its approach to financial management and governance amidst evolving economic realities.