Find other sources of revenue, Lusaka tells counties

Senate Speaker Kenneth Lusaka has asked county governments to widen their revenue generation bases by increasing wealth creation.

Mr Lusaka advised the devolved units against solely depending on funding from the national government, which is sometimes hit by delays.

DELAYS

"County governments should diversify their revenue bases to ensure development is not crippled when national government funds delay," Mr Lusaka said on Wednesday.

He spoke at Kabarak University's main campus in Nakuru County where he and Makueni Senator Mutula Kilonzo Jr lectured law students.

The Speaker said county governments should promote more businesses.

He revealed that the Senate is in the process of streamlining disbursement of funds to ensure counties get it on time.

A 2014 survey by the Institute of Certified Public Accountants of Kenya (Icpak) indicated that 15 out of the 47 counties rely on single business permits as their core source of revenue. Fourteen rely on user fees while the rest depend on property rates.

FINANCE BILL

Senator Kilonzo Jr lauded the High Court ruling that found the new tax scheme illegal.

The court earlier ruled that Finance Bill, 2018 or any part of it cannot become law before it is taken through the legislative process.

Justice Wilfrida Okwany noted a danger in implementing a bill that has not been subjected to public participation.

Judge Okwany declared that the Provisional Collection of Taxes and Duties Act is "unconstitutional and therefore invalid, null and void".

The Senator emphasised the need for public participation saying this must take place before the government makes any decision that directly affects the people.

He proposed sessions in vernacular at county level so the common mwananchi is fully involved.

“Public participation is a must; it should not be treated as an option. Any government is under obligation by the law to involve the public in anything it does that affects citizens,” he said.