Economy

MPs reject push by Treasury to scrap political parties fund

mps

A joint sitting of the National Assembly and Senate listen to President Uhuru Kenyatta delivering his State of the Nation Address at Parliament buildings on November 30, 2021. PHOTO | JEFF ANGOTE | NMG

Parliament has rejected the Treasury’s push to scrap a fund that offers political parties at least 0.3 percent of Kenya Revenue Authority collections.

The Treasury had proposed that a framework be worked out jointly with political parties that ensures funding is not pegged on a specific percentage that is anchored in law.

The Political Parties Act 2011 established the Political Parties Fund that is administered by the Registrar of Political Parties and requires that the fund should be allocated not less than 0.3 percent of the revenue collected by the national government.

The Treasury said the Constitution provides priority expenditures that require funding, which include health and education as well as national security organs that take the first charge in the budget.

“These includes pensions, allocations towards debt service, contingency fund, salary requirements across government and provision to constitutional commissions and independent offices, including Parliament and the Judiciary,” said Treasury Cabinet secretary Ukur Yatani.

Mr Yatani said in considering an allocation to Political Parties Fund, the Treasury is guided by the sharable revenue to county governments, provision of mandatory constitutional requirements such as health services, education, provision of security, safeguarding of national interests, provision of Equalisation Fund and other priorities including the National Government Constituencies Development Fund.

The MPs, however, rejected the Treasury’s plea arguing the fund is meant to promote the representation in Parliament and the county assemblies of women, persons with disabilities, youth, ethnic minorities and marginalised communities.

The Treasury had proposed that sections 23 and 24 of the Political Parties Act 2011 be amended to provide that a framework be developed in consultation with political parties to ensure that political parties are adequately funded.

“To ensure suitable funding of political parties, we propose that the allocation to political parties should not be based on a percentage of revenue collected as it compromises the prioritisation process during resource allocation,” Mr Yatani told MPs.

The Treasury in a memorandum on the Political Parties (Amendment) Bill 2021, argued that the allocation of 0.3 percent of the revenues collected to Political Parties Fund is in contravention of the Constitution

“The Constitution provided the manner and priority on which revenue collected by the national government shall be shared between the national and county governments,” he said.