Contention over county allocations has become a yearly ritual in Kenya's financial discourse. This year, the proposed figures range from Sh391.1 billion by the National Assembly to Sh439.5 billion demanded by governors.
Lost amidst the numbers game is a crucial question: are the counties receiving enough resources to deliver on the promise of devolution? The answer is a resounding no.
Devolution, enshrined in the 2010 Constitution, aimed to empower counties to manage their affairs and improve service delivery at the local level and the early years witnessed significant progress. Schools were built, healthcare facilities were upgraded and local infrastructure projects were initiated.
However, this progress has stalled due to inadequate funding. In navigating this debate, it's essential to balance fiscal responsibilities with the imperative of supporting counties in fulfilling their mandates effectively.
Encouraging dialogue and collaboration among stakeholders will be key to arriving at a budget allocation that best serves the interests of all Kenyans.
The Commission for Revenue Allocation proposes a baseline of Sh398 billion, a figure calculated using a well-defined formula. However, even this allocation falls short.
Consider the vast disparities between counties. A sparsely populated county with a large geographical area requires a different level of investment compared to a densely populated one.
Senators, representing these diverse regional interests, have proposed a higher figure of Sh415.9 billion, acknowledging this need for a more nuanced approach.
Governors, on the other hand, argue for a much steeper increase to Sh439.5 billion. While their demands might seem excessive at first glance, they highlight the dire financial situation many counties face.
These varied proposals likely reflect different assessments of the financial needs of counties and competing priorities at the national level. The discrepancy underscores the complexities involved in equitable resource distribution and governance.
The current allocation system fails to address the specific needs of each county. A one-size-fits-all approach stifles development in marginalised regions.
Increased funding would empower counties to improve essential services through better healthcare facilities, well-equipped schools and reliable infrastructure, which are the backbone of thriving communities. More funds would allow counties to address these critical areas.
Funding is not just about allocating money but boosting the local economies. Investment in agriculture, tourism and small businesses can unlock a county's economic potential. Increased county budgets would empower local leaders to invest in these sectors, creating jobs and fostering growth.
Devolution thrives on citizen participation. Counties with adequate resources can invest in public participation initiatives, ensuring citizens have a say in how their communities develop.
Proper funding of counties can also be complemented by the devolved units breaking the cycle of dependency. While advocating increased national government allocations, we must acknowledge the need for counties to become less reliant on central funds.
By boosting own revenue generation, counties can reduce their reliance on funds from the national government, fostering greater fiscal independence and sustainability. This approach aligns with the broader goal of enhancing local economic development and governance efficiency.
Parliament can help counties achieve this by ensuring that there are funds to strengthen revenue collection: Many counties struggle to collect taxes and fees effectively. Parliament should support initiatives that improve efficiency and transparency in county revenue collection.
Parliament can also help counties explore innovative financing mechanisms. Public-private partnerships and tapping into alternative sources of revenue can diversify a county's financial base.
The current tug-of-war between Parliament and governors is unproductive and a collaborative approach is needed. Parliament, the CRA, senators and governors need to come together in a transparent dialogue to determine a fair and sustainable allocation formula.
Allocations of funds to counties should be based on robust data that considers population size, geographical area and poverty levels. While at it, a portion of the allocation could be tied to performance indicators, incentivising counties to use resources effectively.
Meeting the demands of increased funding requires a multi-pronged approach – increased national allocations, improved revenue collection by counties and exploring innovative financing mechanisms. Only through a collaborative effort can we ensure that devolution delivers on its promise of a more equitable and prosperous Kenya.