MPs move to unlock Sh4.2b for sports

What you need to know:

  • The fund was established to support the aims of the Sports Act which are to harness sports for development, encourage and promote drug free sports and recreation to provide for the establishment of sports institutions, facilities, administration and management of sports in Kenya.
  • The amendments have been a source of tension between the Ministries of Sports and National Treasury with the former accusing the later of engineering the changes with a view of controlling the fund, forcing the Sports PS James Kaberia to one time come out and deny the existence of the tension.

The National Assembly’s Sports, Culture and Tourism committee has okayed the proposed amendments to the Sports Act, paving the way for the House to debate the Sports (Amendments) Bill 2018, and possibly unlock nearly Sh4.2 billion for the management of sport in Kenya.

The Bill seeks to amend the provisions relating to the establishment and the operation of the National Sports Fund (NFS) in order to provide for a comprehensive approach to financing of the sports sector through the establishment of the Sports, Arts and Social Development Fund under the Public Finance Management Act.

The Bill creates the Sports, Arts and Social Development Fund, which will take over the functions of the National Sports Fund which identified its sources of funds as all proceeds of any sport lottery, investments and any other payments required by the Act to be paid in the fund.

However, the objectives of the Social, Arts and Social Development Fund relate to supporting programmes and initiatives from sports, arts and social development which are broader that NFS which was largely to support sports programs.

In its report on the Bill, the committee is proposing that the Public Finance Management (Sports, Arts and Social Development) Regulations amended to provide that 35 per cent of the Fund’s proceeds should be the base quantum apportioned towards the promotion and development of sports once the proposed amendments are adopted.

In its report on the Bill, which was tabled in the House on Tuesday, the committee, which is chaired by Machakos Town MP Victor Munyaka further wants Regulation 11 amended to provide expressly that CS National Treasury may appoint a person to act as an administrator of the Fund in the absence of the Principal Secretary.

The fund was established to support the aims of the Sports Act which are to harness sports for development, encourage and promote drug free sports and recreation to provide for the establishment of sports institutions, facilities, administration and management of sports in Kenya.

The amendments have been a source of tension between the Ministries of Sports and National Treasury with the former accusing the later of engineering the changes with a view of controlling the fund, forcing the Sports PS James Kaberia to one time come out and deny the existence of the tension.

The operationalisation of the fund was dealt a major blow late last year when the National Assembly annulled the Public Finance Management (Sports, Arts and Social Development) regulations 2018 on the recommendation of its committee on Delegated Legislations.

While the regulations had been gazetted by CS Henry Rotich, to operationalise the fund, the committee on Delegated Legislation argued that the regulations were inconsistent with the Sports Act and that it was contrary to the provisions of the Statutory Instruments Act that provide that no regulation can contravene the parent Act and the Finance Act 2018 as provided that collector of taxes to pay all proceeds of the tax paid under Betting Lottery and Gaming Act into Sports, Arts and Social Development before the Finance Act 2018 had come into force.

Regulation 4 of the Regulations provide that 60 per cent of the proceeds from the Fund shall be apportioned to social development, including universal healthcare, 35 per cent to the promotion of sports, 20 per cent to promote and develop art and 5 per cent to government strategic interventions.

In its report, the committee wants the regulations amended to base the quantum for supporting sport to be not less than 35 per cent, arguing that it aimed at preserving the original aim of the Sports Act.

“The regulation should be amended to provide that the Fund shall apportion not less than 35 per cent of its proceeds is apportioned to Sports development,” the committee states.