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REPORT ON THE BENCHMARKING VISIT BY THE PORTFOLIO COMMITTEE ON BUDGET FINANCE AND ECONOMIC DEVELOPMENT TO THE PARLIAMENT OF KENYA (28 JULY- 3 AUGUST 2019 1

 · Web view7.1.2The 2010 Constitution further changed the public finance management architecture and made the budget process in Kenya more participatory. Chapter 12 of the Constitution

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Page 1:  · Web view7.1.2The 2010 Constitution further changed the public finance management architecture and made the budget process in Kenya more participatory. Chapter 12 of the Constitution

REPORT ON THE BENCHMARKING VISIT BY THE PORTFOLIO

COMMITTEE ON BUDGET FINANCE AND ECONOMIC DEVELOPMENT

TO THE PARLIAMENT OF KENYA (28 JULY- 3 AUGUST 2019

Presented by the Committee Chairperson, Hon F.T. Mhona

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1.0 INTRODUCTION

1.1 The Portfolio Committee on Budget, Finance and Economic Development conducted

a benchmarking visit to the Parliament of Kenya from the 28 th to 3rd of August 2019.

The benchmarking visit was fully funded by Parliament of Zimbabwe. The visit was

conducted during the first session of the 9th life of Parliament as part of capacity

building for the Committee as it strives to understand its mandate and improve on

how it conducts its business. The benchmarking visit was very fruitful as the

delegation was able to achieve its main objectives.

1.2 The delegation comprised of nine Honourable Members of Parliament and one

member of staff from the Budget, Finance and Economic Development Committee,

namely; Hon. Felix Mhona (Chair of the Committee); Hon. Ability Gandawa; Hon.

Alice Ndhlovu; Hon. Edwin Mushoriwa; Hon. Godfrey Dube; Hon. Tatenda

Mavetera; Hon. Torerai Moyo; Hon. Willias Madzimure; Hon. Zhemu Soda and Mrs.

Precious Mtetwa (Secretary to the Delegation).

2.0 CONTEXTUAL BACKGROUND

2.1 Zimbabwe and Kenya share a common history were both countries where once

colonised by Britain hence inherited a similar parliamentary system of governance.

Both parliaments are bicameral in nature comprising of the National Assembly and

the Senate. Kenya and Zimbabwe underwent some strong constitutional reforms in

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2010 and 2013 respectively, leading to the enactment of laws aimed at strengthening

of the role of Parliament in the public finance management system and the whole

budget process.

2.2 The Parliament of Kenya is administered by the Parliamentary Service Commission,

which is the parliamentary decision making body, independent from the Executive

and therefore an autonomous body. In executing its mandate, the Commission is

guided by the Parliamentary Service Act of November 28, 2000. On the other hand,

Parliament of Zimbabwe is administered through the Committee on Standing Rules

and Orders as provided for in the Constitution of Zimbabwe. The Committee on

Standing Rules and Orders is equivalent to the Parliamentary Service Commission of

Kenya. However, the two systems differ in terms of composition, staff complement

and the way they are administered.

2.3 The Constitution of Kenya further provides for the establishment of an Executive arm

of the state drawn completely from individuals outside of Parliament. Section 152 (3)

states that ‘A Cabinet Secretary1 shall not be a Member of Parliament.’ Prior to the

enactment of the Constitution in 2010, Ministers were part of the legislature. This new

provision ensures that there is complete separation of power among the three arms of

the state. This arrangement complies with the doctrine of separation of powers as it

allows each structure to supervise the other and ensuring checks and balances thereby

preventing abuse of public resources.

2.4 In Zimbabwe, while the law provides for separation of powers, there remains

challenges in terms of implementation due to various factors, in particular, who really

owns the power of the purse between the Executive and the Legislature.

2.5 The issue of devolution seems to be identical in the Constitutions of the two nations.

The Constitution of Kenya devolved power and responsibilities from the national

government to 47 elected county governments. Zimbabwe on the other hand is also in

the process of devolving power from the national government to provincial councils.

3.0 OBJECTIVES OF THE BENCHMARKING VISIT

3.1 The objectives of the benchmarking visit to the Parliament of Kenya were specifically

aimed at achieving the following;

1 In Kenya, a Minister is referred to as a Cabinet Secretary

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i. Learn the structure, role and activities of the equivalent and related

Committee/s to the Finance and Economic Development Committee;

ii. Appreciate the work and strategies of Committees in their legislative and

oversight roles; and

iii. Share lessons and experiences of the Committees in the budget cycle and the

functionality of the Budget Office.

4.0 PROGRAMME OF ACTIVITIES

4.1 During the one-week long benchmarking visit in Kenya, the delegation had the

opportunity of touring the two chambers of Parliament, namely; the National

Assembly and the Senate chambers. In addition to that, the delegation observed a

parliament sitting session in the National Assembly. The delegation also held

meetings with the Parliament Budget Office, Budget and Appropriation Committee

(BAC); and the Finance and Economic Planning Committee as it sought to establish

and understand their different roles in the budget process.

4.2 On the invitation by the Hon. Chairperson of the BAC, the Committee had the honour

to witness the issuance of birth certificates to the Shona community in Kikuyu

province, which has been part of the stateless community in Kenya. Last but not least,

the delegation paid a courtesy call to the Chairperson of African Parliamentarians

Against Corruption (APNAC) Kenya, Hon. Shakeel Shabbir Ahmed.

5.0 TOUR OF THE NATIONAL ASSEMBLY AND SENATE

5.1 The delegation toured both houses of Parliament, namely, the National Assembly and

Senate chambers. It was established that Kenya operated under a unicameral system

up to 1966 where a bicameral system which brought about the upper and lower houses

was introduced. However, the 2010 Constitution of Kenya brought additional changes

as it recognised the two houses as equal but with different roles and functions.

5.2 Currently, the National Assembly has a total of 349 seats, of which, about 290 are

elected from the constituencies, 47 women elected from the counties and 12

nominated representatives by parliamentary political parties according to their

proportion of members of the National Assembly. The National Assembly is mainly

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responsible for representing the people of the constituencies and guiding the national

purse in addition to their legislative and oversight function.

5.3 The Senate comprises of forty-seven (47) members each elected from the counties,

sixteen (16) women members who are nominated by political parties according to

their proportion of members of the Senate, two (2) members, being one man and one

woman, representing the youth; two (2) members, being one man and one woman,

representing persons with disabilities. The Senate represents the Counties and serves

to protect the interests of the counties and their governments in addition to their

legislative and oversight functions.

5.4 During the tours, the delegation made the following observations;

5.4.1 That Parliament of Kenya has gone paperless since both houses were now

computerised. All Members of Parliament receive the Order Paper and Hansard on the

tablets fixed on their tables in the Chamber.

5.4.2 The Parliament of Kenya has adopted the Biometric Registration for both houses,

which makes it easier to register attendance of the members in the House.

5.4.3 Both Chamber infrastructure is sensitive to persons with disability given that they

have reserved seats in the House specifically designed to accommodate them.

5.4.4 There is a Parliamentary Broadcasting Unit within Parliament, which operates full

time to broadcast all parliamentary business to the various radio and TV stations on a

commercial basis. The Unit is manned by staff of Parliament.

5.4.5 There is a Media Centre within the precinct of Parliament which is fully furnished and

equipped, where the media people use to prepare their stories for publication.

6.0 MEETING WITH THE PARLIAMENTARY BUDGET OFFICE

6.1 The delegation established that the Parliamentary Budget Office (PBO) was

established in 2007 as a non-partisan professional office of the Parliament of Kenya.

The primary function of the Office is to provide professional non-partisan advice in

respect of budget, finance and economic information to committees of Parliament, in

particular, the Budget and Appropriation Committee (BAC) and the Finance and

Planning Committee (FPC). The Office was established under the Directorate of

Information and Research by a resolution of Parliament pending the enactment of the

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requisite legislation. The decision to create the PBO came about on the realisation that

budget documents are bulky and complex hence the need to be synthesised and

highlight the salient issues for parliamentarians to take note and make quick

decisions.

6.2 The Delegation noted that the PBO of Kenya was established without any legal

backing until 2009 when the Fiscal Management Act (FMA) was enacted, which

established the PBO as a unit under the Parliamentary Service Commission. The

Office was subsequently elevated to a Directorate in 2010. The enactment of the

Public Finance Management Act in 2012 repealed the Fiscal Management Act and

also enhanced the operational independence of the PBO.

6.3 The PBO is headed by the Director, Mrs Phyllis Ndunge Makau, who reports

administratively to the Clerk of the National Assembly. She was among the 1st

employees to work for the PBO at establishment in 2007, having worked in the

Treasury department for close to 20 years. Currently, the Office comprises of 3

departments, headed by 3 Deputy Directors, namely;

Macroeconomic Analysis and Statistics Department, which specialises on

sectoral expenditure analysis and in-year expenditure tracking,

Budget Analysis and Sectoral Expenditure Department, which specialises on

macroeconomic modelling and forecasting, and

Tax Analysis and Inter-Fiscal Relations Department, which specialises on tax

analysis and revenue forecasting, money bill determination and costing as well as

inter-fiscal matters.

6.4 The PBO currently has a staff establishment comprising of 44 professional analysists

ranging from economists, statisticians, fiscal analysts and lawyers, among others. The

Head of Department has so far proposed for an expansion of the staff from the current

44 to 50 as measures to enhance the capacity of the office.

6.5 The PBO enjoys a cordial relationship with the Budget and Appropriation Committee,

Finance and Planning Committee and a supportive Parliament Administration from

both houses of Parliament. As a Department within Parliament, the operations of the

Office have been benchmarked to that of the Congressional Budget Office in the

United States of America.

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6.6 The PBO provides technical and support services to the Committee on a fulltime

basis.

6.7 The PBO provides both reactive and proactive analysis on all budgetary matters. The

key outputs of the PBO includes, among others the following;

Budget Options, whereby alternative fiscal framework for the annual budget are

proffered,

Budget Watch, which is a synthesis of the annual budget,

Money Bill Determination Certificates based on the review of the legislation in

accordance with Article 114 of the Constitution on ‘Money Bills’,

Analytical Briefs on the Budget Policy Statement (BPS),

Analytical Briefs on the Annual Estimates of Revenue and Expenditure,

Monthly Bulletins summarising the key economic and budget developments in the

economy.

7.0 THE BUDGET MAKING PROCESS IN KENYA

7.1 The delegation discussed the budget making process in Kenya with the officials from

the PBO. The presentation was made by Mrs Lucy Makara who highlighted the

following key issues;

7.1.1 The budget process in Kenya is shaped by its past history, being a British colony

hence adoption of the Westminster approach in its governance system. In order to

enhance the budgetary process and the public finance management system in the

country, several reforms were undertaken by the Government of Kenya from 1986.

The reforms aimed at addressing the gaps in the budget process and enhance the role

of Parliament in overseeing the utilisation of public resources for the betterment of the

people. Thus, in 1987, the issuance of Treasury Circular by the Cabinet Secretary in

charge of Finance begun and the introduction of the Medium Term Expenditure

Framework (MTEF).

7.1.2 The 2010 Constitution further changed the public finance management architecture

and made the budget process in Kenya more participatory. Chapter 12 of the

Constitution of Kenya sets out the principles of public finance management. It

emphasises the need for public involvement in the budget process, while the PFMA

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delegates that role to consult the people to the Budget and Appropriation Committee

of the National Assembly.

7.1.3 The delegation noted that the Parliament of Kenya has the ‘power of the purse’ in the

budget process.

7.1.4 It was also established that in Kenya, the financial year runs from July to June. Thus,

the budget making process begins in August when the Cabinet Secretary issues the

Treasury Circular in consultation with the Cabinet. Sector Working Groups (SWGs)

are also launched on the basis of key policy areas and issues raised in the circular to

focus on during the budget process. The SWGs comprises of ministries grouped

together depending on their functions and operations as measures to enhance

synergies among departments of Governments. All ministries are required to

participate in their respective sector working groups which review their priorities to

ensure they are consistent with the strategic national objectives as outlined in the

medium term plans and vision 2030. The SWGs then prepare reports that inform the

budget preparations.

7.1.5 The various SWGs reports inform the preparation of the Budget Strategy Paper (BSP)

which must be tabled by the National Treasury latest by 15 February each year.

Parliament has 14 days to review and approve the BSP. The National Standing

Orders require the Departmental Committees to deliberate upon the BSP based on

their respective mandate and make recommendations to the BAC. The BAC then

tables the consolidated report on the BSP to the National Assembly outlining the

recommended revenue projections, total expenditure and ceiling by vote for the

national government, the Judiciary and Parliament.

7.1.6 The National Treasury is required to take into account the resolutions of Parliament

on the BSP when preparing the final budget for the fiscal year. If the National

Treasury deviates from the resolutions made by Parliament, a statement explaining the

deviation must accompany the Budget Policy Statement. The Budget Statement must

be tabled not later than 30 April every fiscal year. In line with that, the Parliamentary

Service Commission and the Judiciary independently present their estimates for

expenditure to the National Assembly by the 30th of April each fiscal year.

7.1.7 Of importance to note, are the various institutions created by the Constitution which

are key and relevant to the budget process. The introduction of Sector Working

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Groups and public participation through budget hearings has been very pivotal in the

history of Kenya. The delegation noted that the consultative processes in Kenya are

quite comprehensive as it involves various stakeholders. The process involves both

the bottom up and up bottom approaches. Overall, the budget process is guided by the

Medium Term Plan (2018 – 2022) and Vision 2030 policy document of the country.

7.1.8 The delegation noted that the Constitution mandates the Executive to table the

National Budget Statement and the Estimates of Revenue and Expenditure at least two

months before the end of each financial year [Article 221(1) of the Constitution]. The

Leader of the Majority in Parliament tables the Budget in Parliament while the BAC

and the Finance and Planning Committee play a critical role in the budgeting

processes.

7.1.9 Kenya has adopted and is implementing programme based budgeting (PBB)

framework where it links national agenda and output.

8.0 ROLE OF DEPARTMENTAL COMMITTEES AND BUDGET AND

APPROPRIATION COMMITTEE (BAC) IN THE BUDGET PROCESS

8.1 Once the Budget Policy Statement is tabled in the National Assembly, it is

automatically referred to the Departmental Committees for review in accordance with

their respective mandates.

8.2 The Departmental Committees prepare and submit their recommendations to the BAC

within 21 days. The delegation learnt that all the Departmental Committees after their

consultations are expected to table their reports before the BAC, which has the powers

to scrutinise the reports and amend where necessary before adopting the reports and

finally tables the consolidated report. The BAC reviews the overall budget estimates,

taking into account the recommendations of the departmental committees, the content

of the BSP, the views of the public and the views of the Cabinet Secretary for the

National Treasury.

8.3 The BAC finally prepares a consolidated report with recommendations for

consideration and approval by the National Assembly.

8.4 The BAC is specifically mandated to deal with all budgetary matters. In order to

ensure that the people are involved in the process, the BAC is also mandated to

engage the people in the budget process through budget consultative meetings in the

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various counties. Kenya has 47 counties and the BAC is expected to visit all the

counties by the end of its 5-year life of Parliament. In line with that, the delegation

established that the Committee strives to visit on average, at least 8 or 9 counties per

year to solicit their views on the ensuing budget.

8.5 It was also highlighted that every year, Parliament sets aside a small budget

specifically targeted at addressing the needs and challenges raised by the people

during the budget consultative process in the counties. For example, if a particular

county requested for the construction of boreholes, or rehabilitation of clinics and

hospitals, the BAC then recommends Parliament to avail resources for that. This in

turn ensures that the National budget deals with bigger projects of national concern.

8.6 The delegation noted that the BAC comprises of 26 Members who then are divided

into smaller teams of 2 or 3 MPs and staff to visit the various counties to gather the

views of the people.

8.7 The delegation was informed that the Parliamentary Service Commission also appears

before the BAC to table and defend their estimates and proposed expenditure for

Parliament every year. The Committee on Justice also deliberates on the estimates and

proposed expenditure by the Judiciary and latter tables before the BAC for approval.

8.8 It was established that once the budget has been approved by Parliament, the

Constitution mandates the National Assembly to authorise withdrawal from the

Consolidated Fund the money needed for expenditure by the 2 arms of the state,

namely Parliament and Judiciary. Article 221 (6) states that; “When the estimates of

national government expenditure, and the estimates of expenditure for the Judiciary

and Parliament have been approved by the National Assembly, they shall be included

in an Appropriation Bill, which shall be introduced into the National Assembly to

authorise the withdrawal from the Consolidated Fund of the money needed for the

expenditure, and for the appropriation of that money for the purposes mentioned in

the Bill.”

8.9 Thus, Article 221 (6) enables Parliament and Judiciary to withdrew from the

Consolidated Fund and plan their own activities for the year without relying much on

piecemeal disbursements parcelled out by the Ministry of Finance as is the case in

Zimbabwe. This allows for complete separation of power and allows the 3 arms of the

state to execute their mandate effectively.

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9.0 ROLE OF THE CONTROLLER OF THE BUDGET

9.1 Part 6 of the Constitution of Kenya establishes the office of the Controller of the

Budget. The Office is responsible for all approval of the withdrawals and

disbursements at both the national and county levels from the Consolidated Fund. The

Controller of the Budget works closely with the National Treasury. He/She controls

all budget disbursements and submit quarterly reports on the implementation of the

budget to Parliament, highlighting all the achievements and challenges on

implementation of the budget on both the national and county level.

9.2 The Office is specifically aimed at promoting transparency and accountability by

ensuring that funds are released only for budgeted activities and thus any unauthorised

activity is not funded.

9.2 The Controller of the Budget only holds office for a term of eight years only and shall

not be eligible for re-appointment.

10.0 ROLE OF THE COMMISSION OF REVENUE ALLOCATION

10.1 The Constitution of Kenya also created the Commission of Revenue Allocation,

which is responsible for recommending the allocation of the national revenue between

the national government and the counties based on the principle of equitably sharing

of revenue by the government.

10.2 The delegation established that the Commission comprises of 9 members appointed

based on the political parties represented in both houses of Parliament and are not

Members of Parliament.

10.3 It was established that both houses must agree on the division of revenue between the

national government and the counties. However, the delegation also established that

during the 2019-2020 budget, both houses failed to agree on revenue allocation

thereby stalling the budget process. When such challenges happen, the President

through the presidential powers is expected to break the impasse and allocate the

revenue based on his own discretion.

11.0 MONITORING AND EVALUATION OF THE BUDGET

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11.1 The delegation noted that mechanisms for monitoring and evaluating the budget in

Kenya were already in place. It was established that monitoring of the budget

implementation is strictly done by the Executive through the State Department of

Planning.

11.2 It was highlighted that there were Planning and Monitoring Units in every Ministry

which directly reports to the State Department on Planning on all budgetary matters.

The reports submitted by the Planning and Monitoring Units to the State Department

on Planning are also forwarded to the Controller of the Budget and these reports feed

into his/her quarterly reporting to Parliament on budget implementation.

11.3 However, challenges were raised relating to Ministries and State Departments failing

to submit monthly and quarterly reports timeously or not reporting as effectively as

possible.

11.4 It was noted that there were cases of Non-Compliance with the legislative provisions

on public finance management leading to the Departmental Committees bringing to

book the Cabinet Secretaries for the relevant Ministries. Parliament of Kenya is

strongly involved in providing oversight on the work of the Executive and bringing

them to account.

11.5 The delegation observed that Parliament has the right to recommend for the dismissal

of a Cabinet Secretary once satisfied that he/she has failed to discharge the mandate of

the office represented or in the event that his/her performance is not satisfactory.

12.0 MEETING WITH THE BUDGET AND APPROPRIATION COMMITTEE

(BAC)

12.1 The delegation witnessed the BAC in session as it considers Private Member’s bills

which have financial implications to the national budget. Tabled before the

Committee was the Information Communication Technology (ICT) Practitioners Bill,

2019 and the National Construction Authority (NCA) (Amendment) Bill, 2019.

12.2 The ICT Practitioners Bill was sponsored by Hon. Godfrey Otsotsi with the support of

the leader of the majority in the National Assembly while the NCA Amendment was

sponsored by an individual Member of Parliament, Hon. David Gikaria.

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12.3 The delegation established that all Bills that have any financial implications to the

national budget are tabled before the BAC for analysis and bill costing. The PBO

plays a significant role in this regard. It provides an analysis of the Bills and costs

them in terms of their financial implications to the national budget.

12.4 The PBO submits to the Committee the bill analysis with THREE POLICY

OPTIONS for the Committee to consider based on what is called the ‘Three

Scenarios,’ as follows; (i) Accept the proposal as it is, or (ii) Pass with amendments,

or (iii) Reject the proposal.

12.4 The delegation was informed that the Committee Clerk to the BAC is from the PBO.

This has had greater impact on the production of minutes and reports for the

Committee.

13.0 MEETING WITH THE FINANCE AND PLANNING COMMITTEE

(OVERSIGHT COMMITTEE)

13.1 The delegation attended a committee session of the Finance and Planning Committee,

whose main mandate focusses on public finance, monetary policies, public debt,

financial institutions, investment, revenue policies, planning and national

development. The Committee oversees the work of the Ministry of Finance and

Planning and Kenya Revenue Authority, among other key government department. In

terms of implementation of the Budget, the Committee relies on the quarterly reports

tabled in the House by the Controller of the Budget. The Committee also relies

significantly on the work of the PBO in terms of analysis of key documents tabled

before the Committee.

13.2 The Committee comprises of 19 members drawn from the various political parties and

educational background. The delegation established that during the budget process,

the Committee is mainly seized with the analysis of the Budget Policy Statement, in

particular, the revenue raising measures, therein.

13.3 The delegation learnt that prior to the enactment of the Constitution, the BAC and the

Finance and Planning Committee used to operate as one Committee. However, it was

noted that the current status quo whereby the two Committee were split into two has

brought its own challenges. The members of the Committee felt that their role was

split hence they do not have a full appreciation of what is transpiring on both side of

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the public purse, i.e. the demand and supply side. Hence concurred that the Zimbabwe

set up was much better in terms of overseeing the national purse rather than the status

quo in Kenya.

13.4 On the revenue raising measures, the delegation noted that the Committee was very

powerful in terms of fixing the taxes to be levied on the people of Kenya each

financial year. It was established that no tax is levied on the people of Kenya without

the Approval of Parliament.

13.5 A case in point was the 16% Petroleum Tax that was proposed by the Executive in

2017. The tax stimulated a lot of debate as the people of Kenya were against the

levying of the tax. The Committee on Finance and Planning tabled a report proposing

that the tax remains at 0%. Therefore, in order to address the impasse, the President

intervened and eventually used his Presidential powers to enact the tax legislation.

Therefore, the Bill was eventually passed at 8% on the basis of the presidential

memorandum put to the House and voted for by the whole house. Thus, the delegation

was fully convinced of the powers of the Committee in terms of its representative and

legislative role.

13.5 The delegation also established that the Committee has the powers to change and

propose new revenue raising measures in consultation with key stakeholders. The

Executive has no right to levy a tax that has not been approved by Parliament.

14.0 CONSTITUENCY DEVELOPMENT FUND (CDF)

14.1 During the deliberations, the delegation was also interested in understanding how the

CDF is implemented in Kenya. The delegation was informed that the planning and

budgeting for CDF was done at the national level under the national government.

Counties only focus on the development of their respective areas, while CDF funds

are mainly aimed at infrastructure development. As set out in the Kenya Constitution,

the CDF funds are administered through a National Board and implemented through

the constituency offices.

14.2 The Delegation established that for the year 2018/2019, each Member of Parliament

got SH109 040 875.52 (equivalent of USD1 090 408.75) as CDF. The amount is not

fixed and it varies depending on the approved budget for the ensuing year.

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14.3 At the Constituency level, the Members of Parliament sits in the CDF Committee as a

Committee Member and does not chair the meeting due to conflict of interest.

However, the MP plays a pivotal role in the selection process of the committee

members.

15.0 COURTESY CALL ON THE CHAIRPERSON OF THE AFRICAN

PARLIAMENTARIANS NETWORK AGAINST CORRUPTION (APNAC)

KENYA

15.1 The delegation paid a courtesy call on the Chairperson of APNAC Kenya, Hon.

Shakeel Shabbir Ahmed. The purpose of the visit was to gain some insights on how

APNAC, Kenya has been operating as a lobby group of Parliamentarians fighting

corruption. Hon. Ahmed highlighted that APNAC has become Africa’s leading

network of parliamentarians working to strengthen Parliamentary capacity to fight

corruption and promote good governance.

15.2 The delegation established that the Kenya Chapter was initiated in February 2001,

through the efforts of the former Member of Parliament for Webuye Constituency,

Hon. Musikari Kombo (former Chairman of a Parliamentary Anti-Corruption Select

Committee). The delegation was informed that prior to the establishment of APNAC

Kenya in 2001, the Kenya Chapter of Parliamentary Caucus was formed to support

the work of the Parliamentary Select Committee on Anti-Corruption.

15.3 At its inauguration, APNAC secretariat was supported by Transparency International

Kenya. The current President of APNAC Africa, Hon. Justin B. Muturi, Speaker of

the National Assembly of the Republic of Kenya has been very supportive and has

strengthened the position of APNAC Kenya Chapter. The Hon. Speaker is also the

Chair of APNAC Africa Executive Council. Currently, the APNAC KENYA

Secretariat is served by 4 members of staff.

15.4 The delegation established that APNAC Kenya comprises of more than 40 Members

of Parliament drawn from all the political divide, including 2 senators. Membership to

the Kenyan Chapter is voluntary comprising of members passionate about fighting

corruption.

15.5 Hon. Ahmed highlighted that the Chapter has already developed a code of conduct

and membership guidelines in line with the provisions of the Leadership and Integrity

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Act of 2012, Public Officer Ethics Act 2003, Anti-Corruption and Economic Crimes

Act 2003 and the United Nations Convention Against Corruption (UNCAC). He

noted that as the Kenya Chapter, all APNAC members were made to read and sign the

Code of Conduct and Guidelines as commitment to serve the Chapter.

15.6 The delegation learnt that APNAC Kenya has had milestone achievements between

2001 and 2008, which included, among others, the following;

Spearheaded the drafting and enactment of the Anti-Corruption and Economic

Crimes Bill, Ethics and Anti-Corruption Commission (EACC), Leadership and

Integrity Act (LIA), Access to Information Act and Bribery Act.

Advocated for the country to ratify the United Nations Convention Against

Corruption (UNCAC) in 2003 and the establishment of the Anti-corruption

division of the High Court.

Currently pushing for the enactment of the whistle blowers and witnesses’

protection law and towards Kenya’s ratification of the African Charter on

Democracy, Election and Good Governance.

16.0 VISIT TO THE KIKUYU CONSTITUENCY

16.1 The Committee was invited to Kikuyu Constituency by Hon. Kimani Ichung’wa

(Chairperson of the BAC) to witness the issuing of birth certificates to the Shona

community from Zimbabwe, which has been part of the stateless community since

around 1960s when they entered Kenya as missionaries.

16.2 The delegation was informed that the Shona Community living in Kenya is estimated

to be more than 2000, of which some of them are living in Kinoo location of Chief. J.

Kimemia. The Government of Kenya facilitated for the issuance of the registration of

credentials as measures to integrate them into the Kenyan community so that they can

claim their rights as citizens of Kenya.

16.3 The Shona Community was living in Kenya illegally, without the proper

documentation to facilitate for the right to education and health or to seek

employment and many other benefits essential to citizens of a country.

16.4 It was a sombre moment for the delegation to witness the occasion.

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17.0 Key Committee Observations and Recommendations

Committee on Budget Finance and Economic Development

Observation Recommendation Responsibility Timeframe

17.1 There is no complete separation of

power between Parliament and the

Executive in Zimbabwe as is the case in

Kenya. Parliament of Kenya

completely owns the ‘Power of the

Purse.’

That the Executive completely surrenders the ‘power of

the purse’ to Parliament and allow the concept of

separation of power to dominate between the Executive

and Legislature especially on all budgetary matters.

Parliament and

Ministry of Finance

On going

engagements

17.2 During the budget process, all Portfolio

Committees of Parliament in

Zimbabwe table reports in the House,

while in Kenya, all the Departmental

Committees submits their budget

analysis reports to the BAC, which in

turns tables a consolidated report in

Parliament

That Parliament adopts the practice, whereby all Portfolio

Committees submit their reports to the Finance and

Economic Development Committee, which compiles a

consolidated report for tabling in the National Assembly.

This process will facilitate for presentation of one report

that speaks to all issues without contradictions that

usually arise from each committee presenting its own

report and ensure more time is left for debate of the

national budget.

Parliament

Administration

Beginning Third

Session of the 9th

Parliament

17.3 Parliament of Kenya through the

Budget and Appropriations Committee

and with the assistance of the

That the operation of the PBO be backed up by

legislation.

Parliament

Administration,

Committee on

By 31 December

2019

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Parliamentary Budget Office, has an

enhanced role in the budget cycle.

Increase the staff compliment of the PBO to adequately

support the work of the Budget, Finance and Economic

Development Committee and other committees of

Parliament.

Budget, Finance

and Economic

Development and

Ministry of Finance

17.4 The Portfolio Committee on Budget,

Finance and Economic Development

conducts budget consultations

throughout the country to traditional

city venues whereas the Budget

Consultations in Kenya are conducted

every year by the BAC, which ensures

that by the end of the 5 year life of

Parliament, all 47 counties have been

visited.

That the Budget, Finance and Economic Development

Committee strives to visit new centres every year for

budget consultations and avoid repeating the same old

venues. For the 5-year life of Parliament, the Committee

must have reached out to the grassroots.

Parliament

Administration and

Committee on

Budget, Finance

and Economic

Development

Third Session of

the 9th Parliament

17.5 There is no clear monitoring and

evaluation of government projects in

Zimbabwe throughout budget

implementation. The Government of

Kenya has in place adequate measures

for monitoring and evaluation of the

budget performance.

That the Government of Zimbabwe through the Ministry

of Finance establishes a Monitoring and Evaluation

mechanism to monitor government projects

Ministry of Finance

and Parliament

By 31 December

2019

17.6 The Secretariat serving the Committee That the Committee on Budget, Finance and Economic Parliament By 31 December

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on Budget, Finance and Economic

Development is inadequate. In Kenya,

the BAC is clerked by a Committee

Clerk who is a full time staff from the

PBO. In addition to that, the Committee

is served by staff permanently attached

from the PBO and a Researcher from

the Research Department.

Development Committee be adequately capacitated by

investing in more staff to serve the Committee on a full

time basis. The Committee Clerk must be selected from

the Parliament Budget Office.

Administration 2019

Other Recommendations

Observation Recommendation Responsibility Timeframe

17.7 While the two Parliaments are

administered by the Committee on

Standing Rules and Orders

(Zimbabwe) and the Parliamentary

Service Commission (Kenya), which

are equivalent in terms of their roles

and functions, the two differs in

terms of composition.

That the Committee on Standing Rules and Orders be

transformed in terms of its composition to strictly

comprise of Backbenchers in terms of its composition to

ensure complete separation of power between the

Executive and Parliament

CSRO

17.8 Parliament of Kenya owns a

Parliamentary Broadcasting Unit to

That Parliament seriously considers establishing a

Parliamentary Broadcasting Unit to be managed

Parliament

Administration

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broadcast all parliament business to

media houses

commercially.

17.9 Parliament of Zimbabwe manually

records attendance of MPs in the

House while Parliament of Kenya

uses biometric registration, which is

more efficient and cost-effective.

While Parliament has adopted biometric registration for

all Hon. Members attending Parliament and Committees

as measures to reduce human errors and enhance

operational efficiency of the institution, the equipment is

lying idle and not being used. It is recommended that the

implementation process be expedited.

Parliament

Administration

Immediately

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