Devolution dividend still within grasp for Kenyans

Of all the sweeping reforms the 2010 Constitution introduced, none has received as much attention as devolution. Decentralisation of power, which was officially implemented after the March 4, 2013, General Election, radically changed Kenya’s political, economic and social landscape.

Analysts were convinced devolution would ensure the equitable sharing of resources between developed urban areas, such as Nairobi, and marginalised communities at the grassroots. The country was ready to reap what development economists referred to as the “devolution dividend”. But four years later, the outlook on devolution is not so rosy.

The optimism has been diluted by an increasing stream of criticism, which has naturally intensified in the lead-up to the General Election. Most criticism levelled against devolution has centred on corruption. There is no shortage of compelling evidence detailing the egregious levels of graft in some counties.

Nevertheless, there are some decisive wins for devolution. Key among these is the generous budgetary allocations the counties have received, and the role these have played in driving socio-economic transformation.

The counties are allocated one-fifth of the total national expenditure. The national government will, by the end of 2016-2017, have transferred in excess of Sh1 trillion to the county governments since 2013, according to Deloitte.

Many villages have more funds now than they ever received between independence and 2013. There has been a massive roll-out of infrastructure, which has catalysed growth and investment at county level. Clearly, sustained economic development in the counties will help actualise the devolution dream.

It will also lead to social development by taming rural-urban migration. An estimated 3.5 million people live in Nairobi, nearly double the two million a decade ago. Meanwhile, infrastructure and jobs have not expanded at a commensurate rate to the population.

This has led to overpopulation, unemployment and the growth of slums. Sixty per cent of Nairobians live in informal settlements. The sustained development of the counties will help counter the high rural-urban migration rates by creating opportunities at the grassroots. Kenyans will not have to move to the city in search of a better future.

To ensure the counties continue attracting investments, we must address the key issues bedevilling devolution, starting with corruption. Many counties inherited debt, lousy balance sheets and corrupt officials from the former municipal governments.

Even before the financial issues are straightened out, the corrupt officials need to be shown the door — to Kamiti. 

Next, we need to improve the payment culture in the counties. Banks and lending institutions currently avoid firms doing business with the counties because the devolved units have acquired the ill reputation of not paying suppliers on time.

Another area we need to focus on is intra-county trade. The counties need to explore strategies of scaling up trade activities and roping in other counties as trade partners.

In the long term, the counties need to explore value addition of goods, such as processing agricultural raw produce into canned food. This will grant the counties access to lucrative export markets.

Of equal importance are policies that accommodate SMEs operating at county level. The counties should focus on creating an environment that encourages networking, training and access to credit for SMEs. Last but not least, we need to look at the counties holistically and not focus on economic growth as an end in itself.

GDP and economic statistics are insufficient indicators of development when used in isolation. Other indicators such as health, living conditions and culture are equally important. The counties must pull up their socks and deliver better quality health services in view of the fact that health is a devolved function.

The counties also need to play a central role in facilitating cultural exchanges between different communities. This will encourage patriotism, boost domestic tourism and lead to peace in areas where negative ethnicity still prevails.