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Nyanza11 January 2024 - 14:46

Impact or waste? Over Sh4.1tn later, counties post mixed results

Supporters celebrate devolved units as a success, critics say counties become corruption dens.

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by The Star
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Homa Bay Governor Gladys Wanga and her Kirinyaga counterpart Ann Waiguru at a past event

Opinion is sharply divided over the impact of devolution 11 years on, with the 47 counties having received Sh4.12 trillion.

Devolution champions celebrate devolved government as a big success but critics say the counties have become corruption dens and employment bureaus while development takes the backstage.

Some county workers have become overnight millionaires as perennial challenges, including food insecurity and inadequate water, persist.   

Famine, drought and flooding especially in Northeastern and Coast counties have persisted despite the billions of shillings sent by the national government. 

The two were among regions previously seen as marginalised, a situation that was to be reversed through devolution of power and resources. 

Controller of Budget Margret Nyakango' has repeatedly asked counties to cut on salaries and put more money in development projects.

“The Controller of Budget recommends that counties prioritise the implementation of development programmes to improve the standard of living for their citizens,” she stated. 

Data from the Commission on Revenue Allocation and Nyakang'o's office reveal that the counties have received Sh3.72 trillion in equitable share and Sh170.8 billion in conditional grants from the  national government.

The counties have also received Sh225.9 billion in loans and grants from development partners.

 “The equitable share allocation to the county governments from the financial year 2013-14 to 2023-24 contributes on average 80.7 per cent to total county revenue,” a CRA report states.

The counties received Sh107 billion in 2012-13, Sh190 billion in 2013-14, Sh227 billion in 2014-15, Sh260 billion in 2015-16, Sh280 billion in 2016-17 and Sh302 billion in 2017-18 in equitable share.

In 2018-19, the devolved units received Sh314 billion and Sh317 billion each in 2019-20 and 2020-21 and Sh370 billion each in 2021-22 and 2022-23.

In the current financial year, they were allocated Sh385 billion in equitable share.

Nairobi, Turkana, Kiambu, Kakamega, Nakuru, Mandera and Kilifi have received the lion’s share of the Sh4.2 trillion channeled to the devolved units to spur growth.

Nairobi has received Sh169.41 billion, Turkana Sh118.81 billion, Kakamega Sh111.45 billion and Nakuru Sh110 billion.

Mandera has received Sh108 billion while Kilifi received Sh104.43 billion in equitable share since the 2013-14 financial year.

Those that have received the least amount are Lamu (Sh28.15 billion), Elgeyo Marakwet (Sh41.13 billion), Taita Taveta (Sh43.31 billion), Kirinyaga (Sh45.73 billion), Samburu (Sh46.85 billion) and Nyandarua (Sh52.51 billion).

In the regions, Kisumu has received the highest amount in Nyanza at Sh72.42 billion, in Central Kiambu led with Sh101.16 billion, and Mombasa has received the highest allocation in the Coast at Sh72.57 billion.

In Western, Bungoma has received the highest amount at Sh96.13 billion, Nakuru has received the highest in Rift Valley region at ShSh109.88 billion while Garissa got Sh107.29 billion, the highest in Northeastern.

Devolution defenders term it a big success and a game changer in the development of the country.

They argue that the devolved system has brought crucial services such as health and infrastructure closer to the people.

“Devolved governance in Kenya has steadied, and progress on various fronts is notable," governance expert Javas Bigambo said.

According to Bigambo, counties have created employment directly and indirectly, opened pathways for the hospitality sector and increased the number of health facilities.

The counties have also developed TIVETs, enhanced public participation and accountability more than was the case before devolution.

“I would rate the success of devolution at six out of 10,” he said.

Nyeri Governor Mutahi Kahiga described devolution as the best gift Kenyans ever gave themselves.

“Since independence, the government had never funded ECDE education. Devolution has done that. We have hired teachers, built more than 15,000 classrooms and equipped them,” the governor said.

He said that massive successes have been realised in pre-primary education, health and agriculture in the last 10 years.

“Today, here in Nyeri if you go to Narumoru you will find a Level 4 hospital, we have tarmacked roads and done many other projects that were initially not there,” he said.

The governor, however, lamented that devolution was being dragged by the same agencies meant to ensure its success.

He cited the National Treasury, which has constantly delayed release of funds.

However, some say that even though devolution has realised certain milestones, the system has been hijacked by selfish politicians.

“Initially, devolution was good, but the governors have lost focus. They have borrowed bad manners from the national government – corruption and inefficiency,” political analyst Martin Andati said.

Various reports by Controller of Budget and the Auditor General reveal  massive wastage in the devolved units, with massive spending on non-essentials such as travel gobbling up billions.

Most counties seem to have abandoned development and are increasingly spending huge chunks of their budgets on salaries and wages.

White elephant projects are all over in the counties, with the Auditor General often reporting high numbers of stalled projects.

Many counties have bloated wage bills as every new governor comes with his or her own staff after election.

Ghost workers are also draining county coffers. Last year, Kisii reported 1,341 nonexistent workers as Machakos reported least 37.

Corruption is also rife in the devolved units with some governors and top officials becoming overnight billionaires.

Several former governors are currently facing graft cases in courts.

They include Evans Kidero (Nairobi), Mike Sonko (Nairobi), Ferdinand Waititu (Kiambu), Okoth Obado (Migori) and Moses Lenolkulal (Samburu).

Analysis by the Star shows that the counties’ expenditure on personnel emolument has increased gradually every year from 2013-14 financial year.

Expenditure on salaries and wages has increased from Sh77.4 billion in 2013-14 to Sh195.09 billion in 2022-23 financial year, an increase of Sh117.69 billion over the 10-year period.

In total, the 47 counties have spent Sh1.47 trillion on personnel emoluments against Sh925.18 billion spent on development over the period.

The latest expenditure report for the first quarter of the current financial year shows that eleven counties did not incur any expenditure on development programmes.

They are Embu, Homa Bay, Kericho, Kilifi, Machakos, Makueni, Nairobi City, Samburu, Turkana, Wajir and West Pokot.

The devolved units have also accumulated massive debts with the latest reports showing that they owe suppliers and contractors in excess of Sh168 billion.

“Accumulation of pending bills adversely affects the delivery of public services and disrupts the business community. County governments are advised to settle the eligible pending bills as a first charge on the budget in line with the law,” Nyakang'o said.

Waringa said most counties have deviated from their core mandates and no longer exist for development.

“When late former President Mwai Kibaki inaugurated the new Constitution, the intention was to have the counties as self-sufficient in terms of resources after 10 years. But today, that is far from being realised,” she said.

She said that corruption and lack of solid and dedicated leadership have pushed the counties away from their initial lane.

A new leadership structure headed by technocrats whose focus is development should be effected for devolution to realise its objectives, Waringa said. Out of 10, she gave devolution three points.

Human rights defenders Boniface Mwangi and Suba Churchill opine that devolution has been a game changer.

“Former Makueni Governor Kivutha Kibwana and Kisumu Governor Anyang’ Nyong'o have shown what devolution can do. The bad side of devolution is theft," Churchill said.

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