Devolution at a crossroads: Time for counties to broaden horizons

A few questions define devolution. For instance, what do counties do with the money they get from the national government or our taxes?

Two, do they generate their own revenues? And three, what is the future of devolution?  

Counties celebrated devolution not because they were free to pursue projects that would uplift their constituents’ standards of living but because they would receive money from the national government. There was a feeling that the national government withheld money from the counties or former districts, just like a parent withholds pocket money from their children.  

They have been getting the money, at least 15 per cent of the budget. Every year, counties fight for more money.

If not fighting for more money, they are fighting over its delayed release. Why not collect more revenues from property rates, entertainment, outdoor advertisement, market entry fees and parking fees? What about attracting more businesses and their taxes? Most of that money in counties goes to paying salaries and wages for county civil service - another reason devolution was celebrated in the counties.

Mutua (2023) noted that 40 out of 47 counties exceeded the limits in paying salaries and allowances. We can discuss the productivity of these workers later.

Little money goes to development despite the constitution giving counties lots of functions. One soft underbelly of counties and devolution is nepotism. Did they learn from the national government or is it homegrown? 

While the constitution and laws are clear on how the money should be used, the penalties and sanctions are rare despite the Auditor General’s reports.

Without money going to development, counties are unlikely to grow and create more jobs. One curious observation while crisscrossing the counties is a proliferation of hotels, not factories. We visit hotels for leisure. Could this be evidence of “floating money” in the counties?  Where is it from? Is it from investment or corruption? Counties were to be centres of economic growth. They would identify the key economic issues at the grassroots and seek funds to address them and supplement the national government efforts.

They seem to have treated the government as a nanny! One bright spot is the big mansions in the rural areas.

County strategy and development papers outline what is to be done.  But the money goes to wages, salaries, allowances and leakage (diplomatic word for nepotism). 

Remember the most corrupt counties in Kenya according to the Kenya Anti-Corruption Commission? 

Though the constitution limits counties power to tax, they have not reached their potential to raise funds. Would matching the funds they raise with the national government help improve that?  

The easier way to raise revenues is to become attractive to entrepreneurs. Ask Nairobi. New businesses would pay taxes and catalyse the local economy. With a multiplier effect, citizens would feel the effect of more jobs and more taxes. 

One curious way to attract businesses is to accommodate diversity (not diversity, equity, and inclusion; DEI).

Have you noted how diversity has made Nairobi attractive to entrepreneurs? Your race and tribe are muted by your entrepreneurial capacity.

The latest Auditor General’s report finds very few counties that have satisfied the 30 per cent of jobs reserved for outsiders.  

Yet behind Silicon Valley and other vibrant entrepreneurial centres is tolerance of diversity. There is evidence that diversity drives innovation (Hewlett et. al, 2013). How many patents have counties registered in the last 14 years?  

It Is not just in raising funds that counties have not lived up to our expectations. There are gaps in the 15 functions they are given by the constitution.

Agriculture, health, control of pollution, culture, transport, animal control and welfare, trade and regulation, planning, early childhood education, public works and services, firefighting, drug and pornography control and any other function that may be transferred to county governments from the national government under Article 187 of the constitution.Going through the list and visiting the counties or getting data on recent developments in the counties, it is clear devolution is a work in progress.

The full economic and political potential of devolution is yet to be reached for citizens to enjoy its fruits.  

The frequent impeachment motions indicate democracy is yet to take root in the counties. We are yet to get a fine balance of power between the county and national governments.

Devolution needs a paradigm shift; it should change our lives at the grassroots without waiting for the national government. 

Unfortunately, the belief that development comes through the national government is too deeply ingrained. 

One easy way to catalyse devolution is to connect it to the bigger picture - globalisation, the East African Community, the African free trade area, Africa Agenda 63 and the fast-ending Vision 2030.

Does the Bottom-up Economic Transformation Agenda (Beta) fall into this category?  We can’t change our counties without integrating them into global supply chains and without a critical number of citizens and leaders believing that progress is possible at the grassroots.

And Nairobi is not the only benchmark of economic growth and transformation.