State to begin transfer of Sh110.84 billion assets to counties

Ministry of Devolution has embarked on the process of valuation and transfer of assets of defunct local authorities to respective counties.

Assets of the national government relating to devolved functions will also be transferred to counties.

Since the counties became operational, more than eight years ago, the process of transferring the assets and liabilities of the former local authorities is yet to be finalised.

This task was initially vested in the Transitional Authority  whose mandate expired in March 2016. TA was replaced by Intergovernmental Relations Technical Committee.

IGRTC estimated the value of assets held by the 175 defunct local authorities to be Sh110.84 billion with liabilities standing at Sh53.75 billion; as at March 2013.

In a gazette notice dated November 19, Devolution CS Charles Keter established the institutional framework to guide the valuation and transfer of the assets.

“The valuation and transfer of registrable assets provided under this framework shall not apply to registrable assets purchased or acquired by county governments after the March 27, 2013,” the notice said.

The framework will apply for registrable assets identified and verified in accordance with Gazette Notice No. 2701 of  March 24, 2017 and Gazette Notice No. 4370 of May 11, 2018 on the verification and transfer of the assets and liabilities of the defunct local authorities.

It will also apply for registrable assets as stipulated in Gazette Notice No. 5711 of 2019 of June 21, 2019 relating to identification, verification and transfer of the assets and liabilities of the national government relating to devolved functions.

The framework seeks to safeguard and secure proprietary ownership of the assets of national and county governments and confer to county governments legal ownership of the registrable assets of the defunct local authorities and the national government relating to devolved functions.

It will also provide data for the update of county assets registers for accounting purposes, in compliance with the National Treasury Guidelines on Assets and Liabilities Management in the public sector issued on August 31, 2020.

There shall be a National Steering Committee on the valuation and transfer of assets, which shall comprise Devolution, Lands, National Treasury, Interior, Health, Agriculture, Water and Transport Principal Secretaries and Solicitor General, Council of Governors and National Lands Commission.

Keter established the framework in line with resolutions of the Intergovernmental Budget and Economic Council made on the June 18, 2019, and February 10, 2021.

In March, 2013, the entities previously known as local authorities ceased to exist and their functions were taken over by the counties as established under the new Constitution.

The transfer of assets and liabilities previously vested in the defunct local authorities to the counties was seen as a crucial step in the transition to devolution.

Assets in question include land, buildings, motor vehicles, computers, furniture and fittings, plant and equipment, biological assets (forests, farms, animals), investments, projects and works in progress.

Land also includes schools, markets, health centers, access roads and social amenities like stadiums and recreational grounds.

(Edited by Bilha Makokha)