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Devolution and Expected Impact in Kenya

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Devolution and Expected Impact in Kenya

Caroline Ntara
School of Business and Economics, Kenya Methodist University
caroline.ntara@kemu.ac.ke

Abstract

Kenyans have suffered from marginalization since the country gained independence. In 2010, the
government did a remarkable duty by creating a new constitution that outlines the functions of a
devolved system of governance. Previous regimes have failed to meet the needs of Kenyans who
undergo extreme agony because of poverty. Kenyans have many expectations of the new system
mainly in the improvement of their social, economic and political status. This paper comments
on devolution in the Kenyan context and identifies the anticipated impacts of devolution on the
country. It argues that, under the new system, counties will develop policies and initiatives that
address the needs of the citizens. Devolution will promote political accountability because
leaders are now under the scrutiny of citizens. The constitution requires citizens to participate in
the planning, decision-making and implementation of public policies. However, devolution may
transfer some of the vices practiced by the central government such as corruption. The main
expected outcomes of devolution include equal distribution of resources, increased production of
goods and services, increased employment, public participation and development of
marginalized regions.
Keywords: Economic Growth; Devolution
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Devolution in the Kenyan context

Since Kenya gained its independence in 1963, Kenyans have suffered because of the

inefficiency of central governance. President Kibaki’s government saw the need to address these

inefficiencies by creating a new constitution that supports devolution. In the Kenyan context,

devolution involves transferring administrative, political and fiscal management powers from the

central government to the low-level government. It involves transferring some of the

responsibilities of the central government to the 47 counties. However, devolution is not a linear

process because it involves some level of coordination between the different levels of

government (Institute of economic Affairs, 2010). This cooperation will heighten national unity,

coordination of socio-economic policies and harmonization of policy formulation (Omari,

Kaburi & Sewe, 2013). Devolution gives local governments the responsibility to make

appropriate county-level plans and implement them. The new system has gained significance as a

key measure of decentralization of governance (Kilonzo, 2011). According to the Constitution of

Kenya (Chapter 11, section 174 (a)), devolving the government to the regional and local level

will promote “democratic and accountable exercise of power”. Kenyans have many expectations

about the effects of devolution in different fields, in the country.

Expectations of the Kenyan people

Kenyans expect devolution to have a significant impact on social and economic

development in Kenya. According to section 174 (b) of the Constitution of Kenya, devolution

aims at promoting social and economic development and the provision of services across the

country. One of the expected impacts is that counties will develop their policies and initiatives

that will benefit the county and its populations. According to Kilonzo (2011), devolution will
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offer “an opportunity for individual counties to mobilize savings” that will promote investment

within the counties. In addition, it will create an opportunity for institutions to raise debt and

equity capital at the county level (Kilonzo, 2011). Kenyans also expect devolution to promote

equitable distribution of resources. In the past, Kenyans at the grassroots would not benefit from

resources because of the rampant corruption and nepotism in the central government. Only

communities that had leaders in the central government would benefit from national resources.

According to the Constitution of Kenya (Chapter 11, section 174 (g)), one of the objectives of

devolution is “to ensure equitable sharing of national and local resources throughout” the

country. Therefore, Kenyans expect devolution to eliminate corruption and favoritism; hence,

equal distribution of resources. Decentralization will reverse the past trend of uneven

development and growing disproportions of economic opportunities that have caused poverty in

many regions and communities.

Kenyan citizens also expect devolution to promote political accountability as required by

the constitution. Accountability is a broad concept that comprises of a myriad of values such as

equity, responsibility, efficiency, democracy, integrity, transparency and responsiveness

(Ndichu, 2011). Section 174 (a) of the Kenyan Constitution describes democratic and

accountable exercise of power as one of the objects of devolved government. Therefore, public

officials have the responsibility to provide a concrete explanation and justification of their

actions. Being accountable to the local Kenyan will ensure that political and public officials

utilize the power given to them by the government in an appropriate manner.

Another expectation is that devolution will promote participation and inclusion. Under

the previous system of governance, the public was only subject to decisions made by the ruling

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elite. The imperial presidency of the past depended on the advice of cronies resulting to unequal

allocation of national resources and social-economic development throughout the country

(Kenya National Commission of Human Rights, 2012). This limited public participation in

decision-making had tremendous adverse effects on the local citizenry. The current Constitution

is quite clear about the participation of citizens in public affairs. Devolution gives powers of self-

governance to local citizens and enhances the participation of people in the exercise of power

and making decisions affecting them (The Constitution of Kenya, 2010, Section 174 (c)). The

Kenyan Constitution also recognizes the rights of communities to manage their affairs and

enhance developments (The Constitution of Kenya, 2010, Section 174 (d)).

Expectations at the County and National levels

When county governments become operational, there will be many incentives and

opportunities for social and economic development. Devolution will lead to an increase in

supply, distribution and access to products and services (Kilonzo, 2011). This is possible because

counties will develop and implement projects that focus on the needs of their citizens. The

county government is close to the community. Therefore, it will be easy to identify the needs of

people such as water, food, shelter and energy. Furthermore, the local government can identify

the industries that can do well and help the county prosper economically. For instance, if the

county has adequate rainfall, the county government can direct its funds and other resources to

agriculture. Devolved governments have their reason for existence in the provision of products

and services whose consumption depends on their jurisdictions. Since the output of such

products and services is contingent to the preferences and circumstances of each constituency,

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devolved provision will increase the economic welfare of constituents (Institute of Economic

Affairs, 2010).

Kilonzo (2011) also asserts that devolution will increase access to financial services such

as capital market, banking, insurance and fund management. Citizens will not struggle with

financial services because devolution will attract investors who will offer such services at the

county level. The 47 counties act as centers for growth whereby people have opportunities to

invest. They attract both local and international investors who in turn create employment for

unemployed citizens. As a result, regions that are at the back seat of national development will

exploit their natural and human resources to the fullest. According to article 203 (2) of the

constitution, not less than 15 percent of the national revenues will be allocated to counties (The

Constitution of Kenya, 2010). According to the recommendations of the Commission on

Revenue Allocation, the criteria used for this allocation include poverty index, climatic

conditions, historical injustices and economic status among others (KNCHR, 2012). In this case,

the fifteen percent will correct the past skewed allocations of national resources and ensure equal

development across the country.

Devolution promises to meet the needs of marginalized communities. The new system of

governance will provide channels for the expression of regional sentiments and encourage

national policies that are sensitive to regional variations. The excessive centralization of power in

the previous system meant that the leader of an ethnic group that led the nation could control an

enormous amount of resources (Institute of Economic Affairs, 2010). Consequently, allocation of

resources followed unfair principles as leaders used criteria such as ethnic consideration,

regionalism, idiosyncratic disposition and political loyalty. Leaders overlooked appropriate

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principles such as basic needs approach and economic criteria. Article 56 of the constitution

provides for affirmative action projects for minority and sidelined communities. In this respect,

Kenyans anticipate that county development plans will have certain procedures involving

marginalized citizens in planning, budgeting and implementation process.

In the past, Kenya had no countrywide recognizable moral code that gave a sense of

national purpose to guide the collective interests of Kenyans (Kenya National Commission of

Human Rights, 2012). In the devolved system of governance, Kenyans expect to participate in

the application of the law, planning and implementing of public policies. Platforms for public

participation include vetting of county leaders, participating in county forums and monitoring the

utilization of public resources (Kenya National Commission of Human Rights, 2012).

Participation in county forums provides an avenue to publicize, review and deliberate on social-

economic issues of development at the county level. Moreover, it will provide an opportunity for

Kenyans to evaluate their leaders.

The downside of devolution

In spite of the many expected positive impacts, devolution may not lead to improved

economic performance and governance. There are fears that the devolution of power, resources

and function of the local government will pass down corruption to the county governments

(Kenya National Commission of Human Rights, 2012). Devolution may lead to increased

corruption because the local government will share some functions with the central government.

It may transfer the evils committed by the central system of governance to the county

government (Omari, Kaburi & Sewe, 2013). It may reduce the national government’s ability to

redistribute resources. Consequently, the central government may not have the capacity to help
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the underdeveloped regions of the country (Institute of Economic Affairs, 2010). Moreover, it

“may lead to the capture of local governments by political elites” in case of improper rules and

systems (Institute of Economic Affairs, 2010, p.8). In this case, local political leaders may use

their political power to take advantage of local resources. This may deprive the Kenyan citizen of

these resources; hence, affect the economic performance at the county level.

Conclusion

In the Kenyan context, devolution involves handing most functions of the central

government to the local government. The Kenyan Constitution strongly supports this system of

governance by outlining the key objectives of devolution. A devolved system presents economic,

social, and political benefits to the county and its citizens. It creates sub-national entities that

enhance accountability by reducing the concentration of power. Consequently, political and

public officials will act responsibly. Through devolution, every region of the country can address

its regional sentiments through inclusion and participation. In order to ensure an equitable

distribution of the national cake, citizens must embrace the new opportunity to deliberate on

issues affecting the county. Both local and external investors ought to take this opportunity to

invest in counties because they are the new grounds for business. If this system of governance

performs as expected, the country will improve its productivity in the next five years. Public

services and resources will be close to the community and people will no longer cry of

unemployment or poverty.

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References

Institute of Economic Affairs (2010). Devolution in Kenya prospects, challenges and future.

Research Paper Series no. 24. Pp. 1-115.

Kenya National Commission of Human Rights (2010). The Devolution Issue. Issue 11. Retrieved

July 4, 2013 from http://www.knchr.org/Portals/0/Magazines/Nguzo%20za%20Haki-

Devolution.pdf

Kilonzo, S. Governance and Business in Devolved System in Kenya. Retrieved July 4, 2013

from http://www.strathmore.edu/pdf/kilonzo-devolution-business-kenya.pdf

Ndichu, J. (2011). Political Accountability in Kenya: Towards Greater Inclusion and

Participation. Retrieved July 4, 2013 from http://arno.unimaas.nl/show.cgi?fid=24379

Omari, A. O., Kaburi, S. N., & Sewe, T. (2013, February). Change Dilemma: A Case of

Structural Adjustment through Devolution In Kenya. In Scientific Conference

Proceedings.

The Constitution of Kenya, 2010

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