This archive report was first published on 3 September 2019.
As the Building Bridges Initiative (BBI) continues to shape Kenya's governance landscape, it's essential to address the country's fundamental governance issues, including devolution.
Devolution, a key component of Kenya's 2010 Constitution, has been marred by controversy over the disbursement and sharing of devolved funds. The tugs-of-war between county governments and the centre, as well as between the Senate and the National Assembly, are a clear indication of the system's flaws.
A permanent fix requires a clear and simple formula for devolved funds, rather than loose laws and regulations open to varied interpretations. This would prevent future ruptures and ensure that counties can survive and thrive independently of cash from the National Treasury.
Kenya can learn from the United States, where all 50 states finance nearly 100 per cent of their own budgets through local taxes. A similar system in Kenya would allow counties to collect and keep their own taxes, rather than relying on the National Treasury for funds.
However, this would only work if county governments are responsible and properly managed, using revenues for the intended purposes and not taxing enterprises out of business. A regime where the bulk of the wealth developed within a country, including natural resources, belongs to the county would also be necessary.
For instance, the governor of Turkana, where oilfields are located, should be addressed directly for his share of the revenue, rather than begging the President for a cut. The State can play a facilitator and neutral arbiter role, but real devolution demands that the oil belongs to the place it originates from.
Proper policies and transparency are essential in ensuring that counties benefit from local wealth. This includes making public all agreements signed with oil explorers and associated entities, as well as other contracts signed on behalf of the country.
A revised Constitution must ensure that no such contracts remain secret, preventing scandals like the Mobitelea case, where denizens of the Moi regime bit a substantial bit of Safaricom for themselves.
