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Impact of Devolution on the Kenyan Economy

BY · July 25, 2015 07:07 pm

When the new constitution was promulgated and the devolved system of governance in Kenya began, the economy was expected to improve but as it appears now, counties are actually destroying the economy instead of building it.

There is massive misuse of public funds at the county level through corrupt deals. Money that is meant to improve the economy of the counties has been diverted to benefit the few individuals instead of accomplishing the intended purpose.

This misuse of public funds has been helped further by the lack of policy on how county governments should spend the cash allocated to them. For instance, county governments have the responsibility to draft their budgets and determine how they are going to spend their money. The central government has failed in monitoring and assessing whether the proposed plans stated in the county budgets are genuine.

There was no clear transition policy at the county level from the former local municipality governments to county governments. Most county governments inherited debts from local governments and instead of channeling the funds given to them to development projects, they had to channel such funds to settling bills. In some counties, there was no list of property that the county government was taking over from the local governments and some properties that previously belonged to the government are still in control of former employees of these local governments.

Tribalism is also killing development at the county level, ultimately affecting the whole country. Governors have been accused of overlooking professionalism for tribalism and therefore undermining the production capacity at the county level. In some counties, those who have been appointed to various managerial positions are people who have close blood relations with the top brass at the county level and who only serve the interests of their masters.

Leadership wrangles at the county level have diverted attention and time from major economic projects that help improve the economy as they create employment and are a source of income for the government. Some county governments have never known peace in terms of leadership as the governor is ever fighting with the MCAs over financial matters. Take a county such as Makueni, there have been no major developments in this county since the current leaders came into office because of leadership wrangles.

The health sector is in shambles after it was devolved to the county levels. Doctors as well as other medics have continuously gone on strike complaining of poor working conditions as well as poor remunerations from the county governments. Health is key to economic development and if the health sector is sick, then the economy is also sick.

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