The 13th Parliament’s Must-Do List for Efficient and Effective Legislative Function
Category: Accountability
By: Leo Kipkogei Kemboi,
The 12th Parliament has had its share of successes and setbacks. The sheer volume and diversity of legislation passed by the 12th Parliament demonstrate the effort made by legislators and committees in enacting both consequential and inconsequential government policies. The problem with increased volume is that it adds legal obligations to the already existing legal code, and could lead to inefficiencies. The legislation creates an information access problem that can harm businesses and discourage public understanding of government aims and priorities.
The Kenyan Parliament, established by Article 93 of the Constitution of Kenya 2010, is made up of the National Assembly and the Senate(1).
By debating and passing county-related bills defined in Articles 109 to 113, the Senate serves to represent counties, protect their interests, and enact laws. The Senate also participates in State officer oversight by debating and voting on any resolution to remove the President or Deputy President from office, as provided in Article 145, as well as exercising oversight over national revenue given to county governments and allocating national revenue among counties, as provided in Article 217. The National Assembly, National Assembly represents the constituents and special interests of the people and decides how much money should be appropriated for use by the national government and other national State organs. They are in charge of overseeing the nation’s finances and how they are spent, as well as investigating the President, Deputy President, and other state officials’ conduct while in office and initiating the removal process. The National Assembly also approves war declarations and state of emergency extensions[i].
One of the outstanding issues is the volumetric approach by the 12th Parliament where a specific number of bills were passed without significant oversight or contributions by both members of the Public and the respective stakeholders in each respective field. The consequential bills from that Parliamentary regime were legislations that obviously emanated from the fiscal policy especially spending and taxation proposals.
As shown below, I propose three proposals to help improve the legislative action of the National Assembly and the Senate. These include incorporating evidence into its decision-making processes, focusing its efforts on high-level legislation, and having fewer and more effective statutes.
- Evidence-Based Policy
Changing/improving/establishing a policy must be approached from an evidence-based standpoint. The political economy of policy changes in Kenya over the last few decades confirms the dominance of normative and untested ideas. However, the 2010 Constitution granted Parliament unassailable powers of checks and balances, implying that Parliament retained its role as the primary economic policymaker. However, this role has not been fully utilized, and Parliament has largely ignored its responsibilities, allowing the primary implementation agency, whether it is the National Treasury, Revenue Service, Ministry of Energy, or Health, et al, to dictate the finer details of the policy without providing the evidence required in the Constitution of Kenya and subsequent laws.
A good example is a progressive increase in excise duty on formal sector alcohol, despite the fact that the resulting action raises the cost of alcohol and clearly forces consumers to substitute with informal sector alcohol, the safety of which cannot be guaranteed. While aggressive proposals are still being made, marginal increases in excise duty revenue are becoming scarce. Another example is imposing excise taxes on financial transactions in an economy where financial inclusion and product use are still low in comparison to income. Another example is the lamentations by members of Parliament on the high taxation
Parliament has retained only a small portion of its primary role in fiscal policy, including the approval of spending and taxation proposals. However, one example of how parliament dropped the ball is the failure to thoroughly investigate the relationship between budgets and productivity and economic growth prior to considering estimates of expenditure and revenue, which has resulted in significant policy problems. In any case, the unintended consequences of any fiscal decisions made by Parliament have not been considered. Parisi and Klick (2004) emphasize that the primary hypothesis advanced by positive economic analysis of law is that efficiency is the primary factor shaping common law rules, procedures, and institutions[ii]. As a result, because fiscal policy is primarily driven by the appropriations law and the finance bill, efficiency should be the primary factor shaping its enactment and implementation.
- Concentrate on Big Tier Legislation
Each resource has an opportunity cost and this includes the lawmaking resources. Whenever lawmaking makes better use of its resources, they are choosing efficient trade-offs. Given the lengthy process of lawmaking, it is important for the leadership of Parliament to prioritize the consequential decisions (bills) that will improve efficiency in the economy, and generate positive outcomes more quickly. Building consensus on fewer but more important policy decisions is far easier and allows Parliamentary leadership to accomplish more than the latter route.
- Fewer and Effective Statutes
The statute books have become more voluminous and complex in text. Ordinarily, the legal text used in most of these legislations is not easy to read for even literate people. when the legislations become dense, complex and voluminous, its utility value reduces. Its imperative to always simplify this kind of legislation. A simple scan of all tax laws in their entirety, for example, reveals that there are 1266 pages, with custom taxes accounting for the majority of them.
It is critical to review legislation with the goal of increasing efficiency and producing better outcomes for Kenyans, as well as improving overall compliance. Other countries’ statute books have also been systematically simplified. The Australian government recently issued new guidelines for simpler and clearer legislation. Almost every administration in the United States has made deregulation a top priority since the Nixon administration.
Conclusion
Kenya’s parliament has largely ignored its role as the country’s primary economic policymaker. The failure to thoroughly investigate the relationship between budgets, productivity, and economic growth has resulted in serious policy issues. It is critical for Parliament to prioritize consequential decisions that will improve economic efficiency. Having fewer and more effective statutes, focusing on major legislation, and bringing evidence into daily parliamentary decision-making will improve Kenyan lawmaking
[i] Kemboi, Leo Kipkogei. “Are the Interests of the Counties Being Protected in the Fiscal Policy Process Without the Senate’s Input?.” Available at SSRN 4193660 (2022).
[ii] Parisi, Francesco, and Jonathan Klick. “Chicago-Kent Law Review Chicago-Kent Law Review Principles of Lawmaking Principles of Lawmaking,” 2004. https://scholarship.kentlaw.iit.edu/cgi/viewcontent.cgi?article=3898&context=cklawreview.
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The 13th Parliament’s Must-Do List for Efficient and Effective Legislative Function
| Post date: Fri, Dec 9, 2022 |
| Category: Accountability |
| By: Leo Kipkogei Kemboi, |
The 12th Parliament has had its share of successes and setbacks. The sheer volume and diversity of legislation passed by the 12th Parliament demonstrate the effort made by legislators and committees in enacting both consequential and inconsequential government policies. The problem with increased volume is that it adds legal obligations to the already existing legal code, and could lead to inefficiencies. The legislation creates an information access problem that can harm businesses and discourage public understanding of government aims and priorities.
The Kenyan Parliament, established by Article 93 of the Constitution of Kenya 2010, is made up of the National Assembly and the Senate(1).
By debating and passing county-related bills defined in Articles 109 to 113, the Senate serves to represent counties, protect their interests, and enact laws. The Senate also participates in State officer oversight by debating and voting on any resolution to remove the President or Deputy President from office, as provided in Article 145, as well as exercising oversight over national revenue given to county governments and allocating national revenue among counties, as provided in Article 217. The National Assembly, National Assembly represents the constituents and special interests of the people and decides how much money should be appropriated for use by the national government and other national State organs. They are in charge of overseeing the nation’s finances and how they are spent, as well as investigating the President, Deputy President, and other state officials’ conduct while in office and initiating the removal process. The National Assembly also approves war declarations and state of emergency extensions[i].
One of the outstanding issues is the volumetric approach by the 12th Parliament where a specific number of bills were passed without significant oversight or contributions by both members of the Public and the respective stakeholders in each respective field. The consequential bills from that Parliamentary regime were legislations that obviously emanated from the fiscal policy especially spending and taxation proposals.
As shown below, I propose three proposals to help improve the legislative action of the National Assembly and the Senate. These include incorporating evidence into its decision-making processes, focusing its efforts on high-level legislation, and having fewer and more effective statutes.
- Evidence-Based Policy
Changing/improving/establishing a policy must be approached from an evidence-based standpoint. The political economy of policy changes in Kenya over the last few decades confirms the dominance of normative and untested ideas. However, the 2010 Constitution granted Parliament unassailable powers of checks and balances, implying that Parliament retained its role as the primary economic policymaker. However, this role has not been fully utilized, and Parliament has largely ignored its responsibilities, allowing the primary implementation agency, whether it is the National Treasury, Revenue Service, Ministry of Energy, or Health, et al, to dictate the finer details of the policy without providing the evidence required in the Constitution of Kenya and subsequent laws.
A good example is a progressive increase in excise duty on formal sector alcohol, despite the fact that the resulting action raises the cost of alcohol and clearly forces consumers to substitute with informal sector alcohol, the safety of which cannot be guaranteed. While aggressive proposals are still being made, marginal increases in excise duty revenue are becoming scarce. Another example is imposing excise taxes on financial transactions in an economy where financial inclusion and product use are still low in comparison to income. Another example is the lamentations by members of Parliament on the high taxation
Parliament has retained only a small portion of its primary role in fiscal policy, including the approval of spending and taxation proposals. However, one example of how parliament dropped the ball is the failure to thoroughly investigate the relationship between budgets and productivity and economic growth prior to considering estimates of expenditure and revenue, which has resulted in significant policy problems. In any case, the unintended consequences of any fiscal decisions made by Parliament have not been considered. Parisi and Klick (2004) emphasize that the primary hypothesis advanced by positive economic analysis of law is that efficiency is the primary factor shaping common law rules, procedures, and institutions[ii]. As a result, because fiscal policy is primarily driven by the appropriations law and the finance bill, efficiency should be the primary factor shaping its enactment and implementation.
- Concentrate on Big Tier Legislation
Each resource has an opportunity cost and this includes the lawmaking resources. Whenever lawmaking makes better use of its resources, they are choosing efficient trade-offs. Given the lengthy process of lawmaking, it is important for the leadership of Parliament to prioritize the consequential decisions (bills) that will improve efficiency in the economy, and generate positive outcomes more quickly. Building consensus on fewer but more important policy decisions is far easier and allows Parliamentary leadership to accomplish more than the latter route.
- Fewer and Effective Statutes
The statute books have become more voluminous and complex in text. Ordinarily, the legal text used in most of these legislations is not easy to read for even literate people. when the legislations become dense, complex and voluminous, its utility value reduces. Its imperative to always simplify this kind of legislation. A simple scan of all tax laws in their entirety, for example, reveals that there are 1266 pages, with custom taxes accounting for the majority of them.
It is critical to review legislation with the goal of increasing efficiency and producing better outcomes for Kenyans, as well as improving overall compliance. Other countries’ statute books have also been systematically simplified. The Australian government recently issued new guidelines for simpler and clearer legislation. Almost every administration in the United States has made deregulation a top priority since the Nixon administration.
Conclusion
Kenya’s parliament has largely ignored its role as the country’s primary economic policymaker. The failure to thoroughly investigate the relationship between budgets, productivity, and economic growth has resulted in serious policy issues. It is critical for Parliament to prioritize consequential decisions that will improve economic efficiency. Having fewer and more effective statutes, focusing on major legislation, and bringing evidence into daily parliamentary decision-making will improve Kenyan lawmaking
[i] Kemboi, Leo Kipkogei. “Are the Interests of the Counties Being Protected in the Fiscal Policy Process Without the Senate’s Input?.” Available at SSRN 4193660 (2022).
[ii] Parisi, Francesco, and Jonathan Klick. “Chicago-Kent Law Review Chicago-Kent Law Review Principles of Lawmaking Principles of Lawmaking,” 2004. https://scholarship.kentlaw.iit.edu/cgi/viewcontent.cgi?article=3898&context=cklawreview.
More Blogs
Unintended Consequences of Excise Tax on Tobacco and Nicotine Delivery Products in Kenya
In principle, Excise taxes are levied on goods and services whose consequences are considered socially undesirable. Most developing countries, including Kenya, rely on excise taxes for revenue. Furthermore, it can be used to achieve public health goals by discouraging the consumption of harmful products such as alcohol and tobacco, thereby addressing negative externalities of that […]
An Alternative Medium-Term Strategy for Kenya’s Central Bank
The Central Bank of Kenya Act, (Cap 491) created the Central Bank as one of its autonomous agencies. The Central Bank’s mandate is to develop Kenya’s monetary policy, foster price stability, print money, and carry out other tasks assigned by a parliamentary act. The Constitution stipulates that the Central Bank of Kenya shall not be […]
A Regulated Kenyan
A look at the total income taxes collected by the government of Kenya in the Financial Year 2020/21 shows that collectively, working Kenyans paid a total of Ksh 694.1 billion for personal income taxes. While this is easy to compute, many Kenyan citizens are aware of how much of their income goes into taxes on […]
How China Escaped The Poverty Trap (Part 6)
What Are Six Policy Lessons that Prof. Yuen Yuen Ang Thinks China’s Experience has Offered the World? Yuen Yuen Ang identifies six policy lessons that China has offered the world. The six lessons are Experiment, within boundaries, Induce incremental changes broadly and in an interconnected way In the first case, define success narrowly. Give all […]
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What Might The Kenyan Supreme Court Decisions Have to Do With Economic Growth? This entry is part of a series exploring the propositions made by Yuen Yuen Ang in her book “How China Escaped the Poverty Trap”. Yuen Yuen Ang’s arguments hinge on principles of the Darwinian coevolutionary model applied to economic theory. Kenya is, […]