President Uhuru Kenyatta has opened a two-day conference bringing together the National Government and County Governors at State Lodge, Sagana.
The Summit will review achievements made as well as challenges in the devolved system of government.
Special focus will be given to various reports by the Intergovernmental Budget and Economic Council, the Intergovernmental Relations Technical Committee and reports on Public finance management.
"The truth is that we now live in a new era. In the past, development came from the national government alone," the President said at the opening.
"Now, we have devolution, so that each of us, however far from the capital Nairobi we may live, has a say in development. The system has had its challenges, but which healthy young child does not have some bruises to show?"
The Summit will discuss several reports on public finance management include laws on double taxation, the IFMIS and funds flow and oversight for conditional grants.
Governors have previously complained that IFMIS challenges delayed procurement and consequently, project implementation.
The matter is being addressed by enhanced capacity and skills building, as well as laying fibre optic to every County headquarters.
The Summit will also receive and discuss reports on conditional grants from the national government to the counties in health sector, free maternity health care, health equipment and several other reports on health services.
Reports on capacity assessment and rationalisation of the public service will be presented and discussed at the summit.
The Transitional Authority will also present a report on the transfer of all devolved functions before the end of the transition period.
The TA will also present another report on the verification of assets and liabilities of the defunct local authorities.
Thursday will be dedicated to celebrating the successes of devolution, and will include presentations by the Presidential Delivery Unit and the Council of Governors Secretariat.
It will be capped by an address to the nation by the President, on the subject of Devolution.