MEMORANDUM

The principal object of this Bill is to provide for the equitable division of revenue raised nationally among the national and county levels of government as required by Article 218 of the Constitution, and to provide for additional resources to facilitate the proper functioning of county governments and to ensure on-going services are provided for.

Clauses 1 and 2 of the Bill provide for the short title of the Bill and the interpretation of terms used in the Bill.

Clause 3 of the Bill contains the provisions on the objects and purpose of the Bill.

Clause 4 of the Bill prescribes the allocations from the national government to the county governments in 2013/14 financial year.

Clause 5 of the Bill deals with mechanisms for adjusting for variations in revenues.

Clause 6 of the Bill contains general provisions which emphasize on dispute resolution before instituting court proceedings and includes provisions on personal liability on public officers who cause a State Organ to incur costs because of referring disputes relating to division of revenue to courts prior to exhausting available alternative dispute resolution mechanism.

Article 218 (2) of the Constitution requires that the Bill be submitted to Parliament together with a memorandum that:

explains the proposed revenue allocation set out in the Bill;

evaluates the extent to which the Bill has taken into account the provisions of Article 203 (1) of the Constitution; and

explains any significant deviation from the recommendations of the Commission on Revenue Allocation.