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Kenya: Senators to extend life of Equalisation Fund

By Rédaction Africa Links 24 with Daily Nation
Published on 2024-01-23 06:00:00

The Equalisation Fund, which is designed to uplift marginalised counties, is under scrutiny by the Senate Finance and Budget committee, as they seek to extend its implementation period. The proposed extension would last more than 10 years, in order to make up for the delays that have hindered the fund’s roll out.

Kakamega Senator Boni Khalwale highlighted that the fund, established after the 2010 Constitution, was intended to last 20 years but faced significant delays in its implementation, only beginning last year. As a result, the committee is considering extending the sunset clause to rectify the lost time and fulfill its purpose of leveling the development playing field between marginalised and other regions.

According to Dr Khalwale, the legal framework permits Parliament to extend the fund’s sunset clause by up to 13 years to compensate for the years lost between 2010 and 2023. The provision under Article 204 of the constitution suggests an initial closure date for the fund in August 2030, but also allows for legislative action to suspend this timeline.

The committee’s vice chairperson, nominated Senator Tabitha Mutinda, emphasized that the extension would ensure that ongoing projects funded by the Equalisation Fund continue until completion, addressing concerns about projects being cut short due to the fund’s expiration.

A total of 1,424 marginalised areas in 34 counties have already benefited from the fund, with plans to utilize the money for basic services such as water, roads, health facilities, and electricity. However, the fund’s disbursement has been slow, with only a portion of the entitled amount being allocated and released in previous years.

The original plan was to benefit 14 counties, but the Commission on Revenue Allocation later expanded the beneficiary list to 34 counties, indicating a broader reach of the fund’s impact. As the Parliament contemplates the extension of the fund’s implementation period, the focus remains on ensuring its efficacy in addressing the developmental gaps between the various regions.

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