Budget Brief No. 30 – Devolution in Kenya: Is the National Government Still Holding Funds That Should be Devolved?

Key Points

  • Many believe that the national government retains functions and funds that should have been devolved to county governments. However, there has been little serious analysis of this issue to determine whether or not it is true, or how much money is involved.
  • Drawing on publically available budget information, we have identified six factors that should be considered when determining which funds and functions can readily be devolved. These factors take into account present funding arrangements at the county, regional, national, and international level.
  • Taking these factors into account, we find that no more than Ksh 65 billion is available for devolution; only part of this could eventually be devolved and we believe the minimum amount that should be devolved is roughly Ksh 28 billion.
  • Almost 75 percent of these funds are controlled by state corporations. This means that the agenda of reforming state financing to align with devolution is largely an agenda of state corporation reform.
  • Parliament should lead a debate on how to reform state agencies to ensure adequate funding for key services and alignment with devolution and the constitution.

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Budget Brief No. 30 – Devolution in Kenya: Is the National Government Still Holding Funds That Should be Devolved?

 

Downloads

Budget Brief 30 Devolved budgets FINAL.pdf

pdf, 0.24 MB
Authors

John Kinuthia

Deputy Executive Director, Bajeti Hub

John Kinuthia is the Deputy Executive Director at Bajeti Hub, bringing over 13 years of experience in public finance and decentralization. He leads the design and execution of the organization’s programs at both national and county levels, advancing transparency, inclusion, and equity in how Kenya raises and spends public resources. John’s work is grounded in rigorous research that also informs Bajeti Hub’s technical assistance and policy engagement with government institutions and civil society actors. His research covers a wide range of public finance issues, including equitable revenue sharing, impact of public debt on social services, social protection, budget credibility, public deliberations, health financing, and sub-national budget transparency. Prior to joining Bajeti Hub, John worked at Twaweza East Africa, where he played a key role in developing the Kenya Budget Explorer, an innovative platform that enhances public access to budget information. Outside of his professional work, John enjoys cycling, farming, and exploring his passion for history and geography.

Jason Lakin

Senior Research Fellow, International Budget Partnership
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