The Intergovernmental Relations (amendment) Bill (senate Bill No. 12 Of 2024)

REPUBLICOFKENYA

PARLIAMENT

SENATE BILLS

(Bill No. 12 of 2024)

THE INTERGOVERNMENTAL RELATIONS (AMENDMENT) BILL, 2024

ss t t s d by the Senate, with amendments, on 5th December, 2024.)

INTERGOVERNMENTALRELATIONS(AMENDMENT)BILL,2024

A Bill for

ANACTofParliament toamend theIntergovernmentalRelations Act and for connected purposes.

ENACTED by theParliament of Kenya, as follows--

1.This Actmaybe cited as theIntergovernmentalRelations

(Amendment) Act,2024.

2. The Intergovernmental Relations Act, in this Act referred

Amendment of section2 to as "the Principal Act", is amended in section 2 by-of Cap. 265F.

• (a)insert the following new definitions--

"agency" means the Intergovernmental Relations Agency established under section 11;

"Administrator" has the meaning assigned to it undertheRetirementBenefitsAct;

"existing scheme" means a retirement benefit pension scheme which existed prior to the setting up of county governments and meets the criteria stipulated underSection22AofthisAct;

"liabilities" means pension debts owing to a retirementbenefit scheme as aresultofunremitted contributions, and may include principal debt, actuarial deficits, interests or penalties and profits;

"Pension Scheme" means a retirement benefit scheme for the payment of regular or periodical payments of benefits to the members or employees when they leave employment or to the dependants of membersor employeesonthedeathofthose

Short title.

Amendment of section 11 of Cap. 265F.

employees;

"scheme rules" means regulations made under section 22Dprovidingfor establishment of a pension scheme for county government employees and related purposes;

"Trustees" means the trustees of the Scheme;

"Umbrella Scheme" means a retirement benefits scheme grouping with members employed by several employers, in which employees and employer's contributions arepaid into thefund established for that purpose;

• (b) deleting the definition of "secretariat"; and
• () deleting the definition of"technical committee".

3. Section 11 of the principal Act is amended —

• , ( n ) Committee" appearing immediately after the words "Intergovernmental Relations" and substituting therefor the word "Agency";
• (b) in subsection (2) by -
• i deleting the words "Technical Committee" the introductory clause and substituting therefor the word "Agency"; and
• (ii) deleting paragraph (c);
• Committee" appearing immediately after the word "The" and substituting therefor the words "members of the Agency";
• (d) by deleting subsection (4) and substituting therefor the followingnew subsection-
• (4) A person shall be qualified for appointment

as a chairperson of the Agency if such person—

• (a) holds a Master's degree in law,humanities or social sciences from a university recognized in Kenya;
• (b)meets therequirements of Chapter Sixof the Constitution;
• (c)has had a distinguished career in their respective fields; and
• (d) hasatleastfifteenyearsworking experience, ten of which should have been in a managerial position;
• (e) by deleting subsection (5) and substituting therefor the following new subsections -
• (5) A person shall be qualified for appointment as a member of the Agency if such person—
• (a) holds a degree from a university recognized in Kenya;
• b) has knowledge and experience of at least ten years in matters relating to—
• (i) law;
• (ii) public administration;
• (iii) alternative disputeresolution;
• (iv) economics;
• (v) finance;
• (vi) human rights;
• (vii) management; or
• (vii) social sciences;
• ()meets the requirements of Chapter Sixof the Constitution;and
• (d) has had a distinguished career in their respective fields.
• (5A) The chairperson and members of the Intergovernmental Agency shall serve on a full-time

Amendment tosection 12ofCap 265F

basis and shall holdoffice for a single nonrenewable term of six years.

• (f) in subsection (6) by deleting the words "Technical Committee" appearing immediately after the words "member of the" in the introductory phrase to and substituting therefor the word"Agency".

4. Section 12 of the principal Act is amended—

• (a) by deleting the introductory clause and paragraph (a) and substituting therefor the following new paragraph --

The Agency shall -

• (a) be responsible for the day to day administration of the Summit and in particular—
• (i) facilitate the activities of the Summit; and
• (ii) implement the decisions of the Summit.
• (b) by inserting the following newparagraphs immediately after paragraph (c)—
• (ca) analyse the resolutions of the Summit with regard to the performance of national and county governments in the provision of services andrecommend totheSummit theappropriate promotive, preventive or corrective action where necessary;
• (cb) facilitate dispute resolution between the national government and county governments within the framework provided under this Act;
• (cc) provide technical assistance on emerging issues intheimplementation of thetransferof functions as contemplated under Article 187 of the Constitution including unbundling, costing and assignment of functions;
• (cd) provide a platform for exchange of information andcoordinationofpoliciesbetweenthetwo levels of government;

Insertion of section12A of Cap 265F

• (ce)receive and transmit to the Summit,reports from sectoral forums,joint committees and any other intergovernmental structures or mechanisms established under this Act;
• (cf)establish 1and maintain a repository information and knowledge on intergovernmentalmatters;
• (cg) coordinate the development of a standardized costingframeworkforthetransferredfunctions in line with Article 187 of the Constitution;
• (ch) witness the execution of all relevant legal instruments pertaining to the transfer of functions;
• (ci) provide a repository for the legal instruments for transfer of functions;and
• (cj) undertake researchonintergovernmental matters.

5. The principal Act is amended by inserting the following new section immediately after section 12—

12A.Powers of the Agency

• (1)The Agency shall have all the powers necessary for the performance of its functions under this Act and, in particular, shall have the power to, on its own motion—-
• (a) gather, by such means as it considers appropriate, any relevant informationincluding requisition of reports, including any State organ, and to compel the production of such information where it considers necessary;
• (b) hold inquiries for the purposes of performing its functions under this Act;
• (c) take any measures it considers necessary to ensure compliance with the principles of cooperation between the national and county governments set out in Articles 6 and 189 of the Constitution;

Amendment ofsection 13ofCap 265F

Amendment ofsection 14ofCap 265F

Amendment ofSection 15ofCap 265F

• (d) issue directions with respect to intergovernmental disputes under this Act; and
• performing its functions under this Act.
• (2)In the exercise ofits powers and the discharge of its functions, the Agency——
• (a) may receive written or oral statements; and
• (b) is not bound by the strict rules of evidence.

6. Section 13 of the principal Act, is amended-

• (i) in subsection (1) by deleting the words "Technical Committee" appearing at thebeginning of the subsection and substituting therefor the word "Agency";
• (ii) by inserting the following new subsection immediately after subsection (1)—
• (1A) The Council of Governors may establish andconvene sector forums on sectoral issues of common interest among county governments.

7. Section 14 of the principal Act is amended in—

• (a) by deleting the words "technical committee" appearing immediately after the word "The" in the introductory phrase and substituting therefor the word "Agency";
• (b) paragraph (a) by deleting the words "the Council" appearing immediately after the words "and to" and substituting therefor the word "Parliament"; and
• ? paragraph(b)by deleting the words "and tothe Council" appearing immediately after the words "to the summit".

8. Section 15 of the principal Act is amended in—

• appearing immediately after the words "secretariat of the" and

Amendment ofSection 16ofCap 265F

Amendment ofSection 17ofCap 265F

Amendment ofSection 18ofCap 265F

substituting therefor the word"Agency";

• (b) subsection (2) by deleting the words "Technical Committee" substituting therefor the word"Agency";
• (c)subsection (4) by deleting paragraph (b) and substituting therefor the following new paragraph-
• (b) responsible to the Agency for the day to day administrationof the affairs of the secretariat and implementation of the decisions of the Summit;
• (d) in subsection (5) -
• (a) by deleting the words "the Council and the Technical Committee"" appearing immediately after the words "of the Summit" in paragraph (a) and substituting therefor the words "and the Agency;"';
• (b) by deleting the words "the Council and the Technical Committee" appearing immediately after the words "expenses of the Summit" in paragraph (e) and substituting therefor the words "and the Agency"; and
• (c) by deleting the words "the Council and the Technical Committee" appearing immediately after the words "by the Summit" in paragraph (f) and substituting therefor the words "and the Agency".

9. Section 16 of the principal Act is amended in the appearing immediately after the words "office by the" and substituting therefor the word "Agency". 10. The principal Act is amended by deleting section 17 and substituting therefor the following new section-

Staffofthe summit.

17. The Agency may employ staff as are necessary for the proper discharge of the

functions of the Agency under this Act.

11. The principal Act is amended in section 18 by deleting the words "Technical Committee" appearing immediately after the words

Amendment ofsection 20 of Cap. 265F.

Insertionof a new Section 20AofCap 265F

Insertion of new sections.

12. The principal Act is amended in section 20(1) by inserting the following new paragraphs immediately after paragraph (i) — 2. Gj) coordinate the appointment of Trustees to schemes upon receipt of nominationbyrelevant stakeholders and appoint independent trustees in accordance with the Retirement Benefits Act; 3. (k) perform such other coordination functions as may be necessary for the efficient functioning of the schemes; and 4. (l) ensure the respective counties perform their responsibilities as sponsors of the scheme effectively for the best interest of their employees and in accordance with the Retirement BenefitsAct. 5. 13.The principal Act is amended by inserting the following new section immediately after section 20—

20A. Funding of the Council

• (1) The funds of the Council shall consist of

2. (a) annual subscriptions by county governments; 3. (b) monies allocated annually by Parliament for the purposes of the Council; and 4. (c)such monies as may be lawfully granted or donated to the Council. 5. (2)The Council shall determine bi-annually the amounts to be paid by county governments as subscriptions. 14. The principal Act is amended by inserting the following new sections immediately after section 22 -

22A.Establishment ofpension scheme

• (1) Employees and staff of a county government shall subscribe to an existing pension scheme for officers and staff of county governments prescribed under this Act.
• (2) The pension scheme shall be one which is-

3. (a) established under irrevocable trusts or under regulations made under section 19D; 4. (b) registered under the Retirement Benefits Act prior to

thecommencementofthisAct;

• (t) a retirement benefit scheme which offers lifetime periodical pension;
• (d) a defined contribution (umbrella) pension scheme;
• ( county governments in Kenya as at the coming into force of this section; and
• (f)not a defined benefits pension scheme.
• (3) The Scheme shall be one administered by an administrator of the scheme appointed by the Trustees.
• (4)The benefits entitlement shall not be less than those provided for under a Scheme existing at the commencement of thisAct.

22B.TrusteesoftheScheme

• (1) There shall be a Board of Trustees which shall be a body corporate registered as such under the Trustees (Perpetual Succession)Act.

(2) The Scheme shall have at least four and not more than nine trustees.

• (3)The Council shall ensure that at least one of the nine trustees is an independent trustee who-
• (a) shall be sourced through a competitive recruitment process by the Council; and
• (b) possesses all relevant qualifications required of trustees undertheRetirementBenefitsAct.

22C.Portability of benefits

The Schemes shall have reciprocal arrangements for purposes of portability of benefits with a contributory Scheme for national government public service and any other registered pension Scheme in Kenya and compatible schemes in any foreign country.

22D. Amendment of Existing Laws and regulations

Any law or regulation on retirement benefits for counties whichexisted at thecommencementof thisActshallwithinone year be amended to conform to thisAct.

Insertion of new sections.

15. The principal Act is amended by inserting the following new sections immediately after section 23—

23A.EstablishmentoftheCouncil Secretariat

(1)There shall be a secretariat to the Council which shall be headed by a chief executive officer.

(2) The chief executive officer shall be competitively recruited and appointed by the Council.

(3) A person is qualified to be appointed as the chief executive officer if that person——

• (a) holds a degree from a university recognised in Kenya;
• (b) has at least ten years relevant professional experience;
• (t) has demonstrable competence in administration of not less than five years; and
• (d) satisfies the requirements of leadership and integrity provided under Chapter Six of the Constitution.
• (4) The chief executive officer shall be-
• (a) the accounting officer of the secretariat;
• (b) the Secretary to the Council; and
• (c) responsible to the Council for the day to day administration of the affairs of the Secretariat.

(5) Without prejudice to the generality of the provisions of subsection (4), the chief executive officer shall be responsible for—-

• (a) the implementation of decisions of the Council;
• (b) the establishment and development of an efficientadministrationoftheSecretariat;
• (c) the organization, control and management of staff of the Secretariat;
• (d) maintaining accurate records on financial

matters and resource use;

• (e)ensuring the preparation andapprovalof the budgetfor the requiredfunding of the operational expenses of the Council; and
• (f) performing any other duties as may be assigned by the Council.

(6) The chief executive officer shall be appointed for a single term of six years and shall not be eligible for reappointment.

23B.Removal from office of thechief executive officer

The chief executiveofficermaybe removed from officeby the Council in accordance with the terms and conditions of service, for—

• (a) inability to perform the functions of the office arising out of physical or mental incapacity;
• (b) gross misconduct or misbehaviour;
• (c) incompetence or negligence of duty; or
• under the terms and conditions of service.

23C.StaffoftheCouncil

The Council may employ staff as are necessary for the proper discharge of its functions.

23D.Transition of Staff

The staff serving in the Council shall at the commencement of this Act be deemed to be staff of the Council as provided for under section 23C.

23E.Remuneration of staff

TheChief Executive Officer and staffoftheSecretariatshall be paid such salaries,benefits and allowances for expenses as may be determined by the Council,in consultation with the Salaries and Remuneration Commission.

23F. Establishment of County Assemblies Forum

• (1)There is established a County Assemblies Forum which shall consist of all the members of County Assemblies and speakers of the forty-seven county assemblies.
• (2) The forum shall be managed by a National Executive Board.
• (3) The members of the National Executive Board shall elect-
• (a) a chairperson who shall be a speaker of a County assembly;
• (b) a vice-chairperson;
• (t) a Secretary General who shall be a member of a County Assembly; and
• (d) six other members from amongst its members.
• (4)Notwithstanding the generality of subsection under (3)membersof Countyassembliesshallhaveat least 5 members in the National Executive Board.
• (5) No County Assembly shall have more than two board members.
• (6)The National Executive Board of the forum shall serve for a term of two years and shall be eligible for reelectionforonefurtherterm.

23G.FunctionsoftheForum

• (1) The Forum shall provide an avenue for-

2. (a) consultation amongst county assemblies; 3. (b) sharing of information on the performance of the CountyAssembliesin the executionof their functions with the objective of learning and promotion of best practice and where necessary, initiating preventive or corrective action;

• (c) facilitating disputes resolution within County Assemblies;
• (d) considering matters of common interest to County Assemblies;
• (e) facilitating capacity building for members of the forum;
• representing County Assemblies in all engagements withIntergovernmentalForums;and
• (g) considering reports from other intergovernmental forums on matters affecting County Governments.
• (2) The Forum may establish working groups or committees for the better carrying out ofitsfunctions.

23H.Fundingof theForum

• (1)The funds of the Forum shall consist of
• (a) mandatory annual subscriptions by County Assemblies;
• (b)monies allocated annually byParliament for the purposes of the Forum; and
• (c)such monies as maybe lawfullygranted or donatedtotheForum.
• (2) The Board shall determine bi-annually the amounts to be paid by County Assemblies as subscriptions.

231. Meetings of the Forum

• (1) The Forum shall meet at least once every year.
• (2) The Forum shall prescribe its own procedures.

23J.Reports by theForum

• (1) The Forum shall submit an annual report to the Senate.
• (2) The report under subsection (1) shall be transmitted to the county assemblies within three months after the end of every financial year.

23K.EstablishmentoftheForumSecretariat

• (1)There shall be a Secretariat ofthe Forum which shall be headed by a chief executive officer.
• (2) The Chief Executive Officer shall be the Secretary to the Forum.
• (3) Thechief executive officer shallbe competitively recruited and appointed by theNational ExecutiveBoard.
• (4) A person is qualified to be appointed as the chief executive officer if that person—
• (a) holds a degree from a university recognised in Kenya;
• (b) has at least ten years relevant professional experience;
• () has demonstrable competence in administration of not less than five years; and
• (d) satisfies the requirements of leadership and integrityprovidedunderChapterSix of the Constitution.
• (5) The chief executive officer shall be
• (a) the accounting officer to the Forum;
• (b) the Secretary to the forum; and
• (t) responsible to the Forum for the day to day administration of the affairs of the Secretariat.
• (6) Without prejudice to the generality of the provisions of subsection (5), the Chief Executive Officer shall be responsible for-
• (a) the implementation of decisions of the Forum;
• (b) the establishment and development of an efficient administration of the Secretariat;
• (c) the organization, control and management of staffoftheSecretariat;
• (d) maintaining accurate records on financial mattersandresource use;
• (e) ensuring the preparation and approval of the

Amendment ofSection 26ofCap 265F

• budget for the required funding of the operational expenses of theForum; and
• (f) performing any other duties as may be assigned to them by the Forum.
• (7) The chief executive officer shall be appointed for a term of three years and shall be eligible for reappointment once.

23L.Removal fromoffice of the ChiefExecutive Officer

The chief executive officer may be removed from office by the NationalExecutiveBoard in accordancewith the terms and conditions ofservice.

• (a) inability to perform the functions of the office arising out of physical or mental incapacity;
• (b) gross misconduct or misbehaviour;
• (c) incompetence or negligence of duty; or
• (d)anyotherground thatwould justifyremovalfrom officeunder the terms and conditions of service.

23M.StaffoftheForum

The Forum may employ staff as are necessary for the proper discharge ofitsfunctions.

23N.Remuneration of staff

The Chief Executive Officer and staff of theForum shall be paid such salaries,benefits and allowances for expenses as may be determined bytheNational ExecutiveBoard,inconsultationwith the Salaries andRemuneration Commission.

16. Section 26 of the principal Act is amended in - 2. (a) subsection (4) by inserting the words "and the Senate" immediately after the words "The National Assembly"; and 3. (b) subsection (5) by deleting the words "A County

Assembly" appearing at the beginning of the subsection and substituting therefor the words "The Senate and respective county assembly".

Amendment 17. Section 30 of the principal Act is amended in subsection ofSection (2) by— 33of Cap 265F

• (a) deleting the word "may" appearing immediately after the words "party to the dispute" and substituting therefor the word "shall"; and
• (b) deleting the words "Summit, the Council" and substituting therefor the word "Agency".

I certifythat thisprinted impression is a true copy of theBill aspassed by the Senate, with amendments, on Thursday, 5th December, 2024.

ClerkoftheSenate

Endorsedforpresentationto theNationalAssemblyin accordancewith theprovisions ofstandingorder161of theSenateStandingOrders.

SpeakeroftheSenate

PRINTEDBYTHECLERKOFTHESENATE