Waiguru: We've covered so much ground in two years

Kisumu, Kenya: The Standard’s Kagure Gacheche interviewed Devolution and Planning Cabinet Secretary Anne Waiguru on devolution process and the teething challenges that remain two years later.

Q: Kenya’s devolution process has been termed one of the most rapid and ambitious processes going on in the world. In your opinion, what are some of the biggest successes the process has had so far?

History will recognise the speed with which the Jubilee Government has rolled out devolution to signal the change in the new dispensation.

We have covered so much ground in just two years. What we have done thus far, it has taken many countries years to accomplish.

First, within 30 days of the Jubilee administration, county governments had been established and operationalised. Soon thereafter, through Legal Notice No. 137, majority of the functions listed in the Fourth Schedule of the Constitution were unbundled and successfully transferred to county governments ensuring they could effectively assume their responsibilities and meet their mandates.

Secondly, devolution has been generously resourced. In 2015/2016, the total revenue is set to increase significantly. The Division of Revenue Bill 2015 sets this amount at Sh283 billion.

Thirdly, all county governments have now put in place the basic systems such as IFMIS, IPPD, Budget and CIDP processes.

Fourth, in line with provisions of the Inter-Governmental Relations Act, 2012, we have continued to provide technical support to the Inter-governmental Coordinating Summit.

Finally, the ministry is implementing the Capacity Assessment and Rationalisation Programme.

Q: The process has not been without its challenges. What have been the biggest sticking points? How do you intend to address them?

Two major challenges have been identified and their solutions.

First, despite constitutional clarity on most issues, institutional stakeholders of devolution have been going through a process of clarifying mandates with regard to functions, mandates and resources.

Second, a great number of counties are experiencing shortfalls in regard to skilled staff, despite having a large work forces, therefore operating at a sub-optimal level. We have noted this concern and this is in fact why we put in place the National Capacity Building Framework (NCBF).

Q: The Devolution Conference this week in Kisumu is intended to appreciate some of these challenges. Do you think there is any area Kenyans have misunderstood about the devolution process?

Our focus will be to look at how far we have come and celebrate these milestones. We, however, recognise that as always, change will create a new dynamic, environment and systems. As a result, the expectations of this process from citizens are that devolved services would be easier to access, more available, less costly; efficient and incusivity in governance and decision making.

The challenge is that the devolution process is still in its infancy and there are teething problems. Building systems and structures requires time before they can take root and function effectively. As a country we are impatient for results, and rightfully so, however, we should not let our impatience destroy the shoots of development that have began to emerge.

Q: What do you wish Kenyans understood about devolution and its overall aims? How long would it take for these goals to be attained?

Devolution is enshrined in Chapter 11 of the Constitution. It legalises the formation of the 47 counties, each with its own government as spelt out in the County Governments Act, 2012. The form of the devolved government is defined in Section 6, which states though the two levels of government are distinct, they remain independent. The two tiers of government, though distinct, are not based on absolute autonomy but rather on interdependence and co-operation.

Q: Are you satisfied with the formula of allocating money to the counties? Is there a better way to do it?

At article 217 (1), the Senate is mandated to determine the basis for allocating national revenue among county governments. This is to be done every five years. Moreover, Article 215 sets up the Commission on Revenue Allocation whose principal function includes inter alia, making recommendations concerning the basis for the equitable sharing of revenue raised by the national government between the national and county government and among the county governments. Of course the Senate does not do this alone; in determining the formula, it consults other key stakeholders including county governors, National Treasury, professional bodies and the public at large.

Q: Some have noted the difficulties in revenue collection and a perceived misuse of county funds. Are there plans to increase audit requirements or tighten fiscal behaviour?

A critical institution charged with the responsibility of ensuring that governments have spent their revenue in line with the law is the Auditor General’s Office. The role of the Auditor General is to periodically audit and report on the accounts of county governments. Moreover, once this is done, the Constitution goes further to mandate this office to compile the report and send it to the county assembly where it is debated with a view to taking necessary action.

The checks and balances are therefore in place to ensure county governments use their funds accordingly. It is for these institutions to make recommendations on such plans.

Regarding fiscal behaviour, Kenya is one in very of few or no countries if at all, in the world that has the office of the controller of budget.

Further still, county governments are bound to the principles of public financial management as spelt out in the Constitution.

Q: What have been the biggest hurdles to increase county revenue collection?

I cannot speak for county governments in regard to this matter and I prefer not to speculate. However, allow me to say the following.

Counties are constitutionally mandated to impose property rates, entertainment taxes and any other taxes it is authorised to impose by an act of Parliament. County governments are also allowed to impose charges for the services they provide.

Over the past two years, devolution has been generously resourced financially as has been mentioned previously.

Whatever county governments do in an effort to raise their revenue, they should ensure they do not jeopardise economic competitiveness of the private sector. Cases of double taxation have been cited by the private sector and both the national government and Council of Governors are identifying ways of resolving such issues.

Q: There have been complaints that some functions that could be better handled at the county level are still centralised. Do you think there’s a case to be made for the current centralising of certain functions?

The Fourth Schedule of the Constitution highlights the division of functions between the national and county government. As per the Fourth Schedule, the stated functions of the national government total 34, while those of the county government number 14 in total.

Functions to county governments have been transferred pursuant to Legal Notice 137 of 2013, which ensured county administrations could effectively assume their responsibilities and had the requisite authority to meet their mandates.

Reviewing functional assignments, is not the prerogative of either level of government, but is a subject of constitutional review, and this decision can only be made by the people of Kenya.

Q: There have also been concerns that counties do not have adequate capacity to undertake some key functions under their docket. What is being done to boost capacity or change this perception?

A great deal is being done in this regard, especially in the area of capacity building. The national government is responsible for inter alia capacity building and technical assistance to county governments.

The Ministry of Devolution in collaboration with other line ministries has ensured all counties put in place basic systems such as IFMIS, IPPD, Budget and CIDP processes.