Devolved Units Should Adopt Systems That Embrace Efficiency, Accountability And Transparency

Dennis Wendo

By: Dennis Wendo

Worth Noting:

Though some of the challenges were envisioned prior to devolution, a bulk stem from despotic leadership and management of the units. Initially, it was perceived as teething obstacles, inviting numerous benchmarking sessions to countries that have been outstanding on the structure of governance. Devolution conferences were espoused with objects to explore local and international recognized methods that strengthen systems and enhance transformational service delivery in counties. As it stands, counties are spending much on recurrent expenditure than on development, an indicator of choking devolution.
The rate of corruption and wastage of public funds is high. Non-compliance with budget ceilings is prevalent with devolved units spending more than what is recommended by the Salaries and Remuneration Commission (SRC).

The ethos and desire for devolution conceive of decentralizing development and service delivery from the National to County Government with citizenry participation being a backbone priority. The system was ushered in immediately after the March 2013 general elections, with its implementation taking off in November 2013.

The nucleus of devolution as outlined in Articles 174 and 175 of the 2010 Constitution of Kenya is to promote democracy and accountability in the exercise of power, foster national unity by recognizing diversity, enhance people’s self-governance, enable communities manage their own affairs, protect and promote interests and rights of minorities and the marginalized and ensure equitable sharing of resources. This is achievable through a structured framework that creates an enabling environment to all stakeholders involved on its implantation.

Since 2013, Kenya has spent over sh 1 trillion on devolution. 10 years down the line the terrain for its discharge is still bumpy with multiple challenges in place. (Article 6 (2) of the constitution allocates functions and powers to the National government as well as County government. Article 189 (a) requires the government at either level to perform its functions and exercise its powers. A sizable number of county governments are still grappling for a bearing, with extended episodes of misplaced development priorities, utmost disregard to the rule of law and policies of governance, nepotism, cronyism, tribalism, unwavering misuse of public funds and corruption.

Though some of the challenges were envisioned prior to devolution, a bulk stem from despotic leadership and management of the units. Initially, it was perceived as teething obstacles, inviting numerous benchmarking sessions to countries that have been outstanding on the structure of governance. Devolution conferences were espoused with objects to explore local and international recognized methods that strengthen systems and enhance transformational service delivery in counties. As it stands, counties are spending much on recurrent expenditure than on development, an indicator of choking devolution.

The rate of corruption and wastage of public funds is high. Non-compliance with budget ceilings is prevalent with devolved units spending more than what is recommended by the Salaries and Remuneration Commission(SRC). Most recent 2023/2024 report from treasury indicates only nine counties spent at least 30 percent of their total expenditure on development projects contrary to section 102(2)(b) of the Public Finance Management Act,2012 which provides that county governments should allocate a minimum of 30 percent of their budget for development expenditure. The report further indicates in the financial year 2023/2024, county government’s expenditure on wages amounted to sh209.8billion, accounting for 47.6percent of the total revenue of sh440.7billion.

Early this year EACC listed eleven counties under investigation for financial improprieties. The 2023/2024 controller of budget report indicates, counties spend sh 15.8b in paying ghost workers. The monies were not processed through the Integrated Financial Management System(IFMIS) as required by law but rather manually to circumvent audit. Over 2000 reports have been submitted to the senate by the Auditor General, revealing the financial muddle at the devolved units. Governors, County Assembly Speakers, Clerks and MCAs are conniving to loot from the public, evidenced through overnight accrual of colossal wealth and lifestyle opulence.

County Governments should cast-of precambrian styles of authority and accommodate approaches that enhance efficiency. A few are on the right trajectory, with visible and praiseworthy returns on the devolved functions. They have invested in working structures and competent personnel.

The discussion to ameliorate counties to deliver optimally is not static. It is broad, dynamic and progressive. County Governments need to embrace and enforce additional strategies to raise revenue, seal loopholes, explore new sources and adopt intelligence-led methods as digital labor and Artificial Intelligence(AI) takes shape.

For instance, they should leverage technology and innovation and utilize block chain hi-tech to record and track revenue transactions and implement smart contracts for automatic collection of fees. There is a call to entrench digital platforms for citizen engagement through online portals for natives to access information, pay fees and report occurrences. Mobile apps should be adopted to timely boost revenue collection, service requests and feedback reports.

Intelligence-led revenue collection is indispensable. It entails usage of data to identify trends, predict revenue streams and detect anomalies in collections. AI tools should be deployed to analyze transactions and flag potential fraud. Geospatial technology is vital in mapping and monitoring revenue generating activities. Satellite imagery should be embraced in identifying unregistered properties.

Devolved units should partner with Kenya Revenue Authority(KRA) to aid access taxpayers data and identify potential revenue sources. They ought to leverage national databases to verify taxpayers’ information. Crowd sourcing intelligence should be deployed to encourage citizens to report unregistered businesses and revenue evasions through mobile apps and hotlines. Transparency portals are necessary for publishing revenue collection data online. This will build trust and encourage compliance.

To combat, reduce leakages and improve transparency on revenue loopholes, it is important for counties to transition from manual cash-based systems to well established and water tight digital platforms.

Integrated revenue collection softwares ought to be deployed to track payments in real time and minimize human interference. There is a need to strengthen internal controls through regular audits, enforce secure whistleblowing mechanisms that inspire citizens and employees to report corruption. Counties have no option but to crackdown on non-compliance by Intensifying inspections and penalties for businesses and individuals evading taxes and licenses. CCTV cameras, drones and geospatial tools are key to monitor revenue-generating activities. Revenue collection officers should be regularly trained on modern collection methods, ethical practices and above all be rewarded for meeting and exceeding revenue targets to motivate compliance and efficiency.

Earnestly, both parliaments, County Governments, the IGRTC, the Ministries, Independent Offices and Commissions and Civil Society Organizations should work together in the spirit of Article 6(2) for the good of actualizing devolution grails.

There is a need for comprehensive funding of the Office of Controller of Budget for effective delivery of its work. The Controller of Budgets Act and regulations should be amended to give it more powers in tracking financial expenditure by counties as well as ability to access county bank accounts to track spending. Equally the senate should be adequately funded to execute its oversight role in strengthening devolution and accountability.

In the quest to materialize some of the recommendations and views of the public submitted to the Nadco committee, the law makers should prioritize and objectively analyze the Budget policy statement (2025), consider bills proposed by the President and the Nadco bills to entrench National Government Constituencies Decentralized Fund(NG-CDF), Senate Oversight Fund and National Government Affirmative Action Fund(GAAF). The proposed review for the revenue sharing formula for 2025/2026 to 2029/2030 financial years should yield a win-win sitch for the counties. They should consider the Public Audit (Amendment) Bill,2024 which seeks to align the Public Audit Act,2015 to the constitution. The bill seeks to provide clarity on the recruitment process of the Auditor –General and improve efficiency of the office.

Dennis Wendo

Integrated Development Network- Public Benefits Organization(PBO)

Email: idn.kenya@gmail.com

: info@idnkenya.org