Law change must focus on economics instead of dwelling on politics

As one would expect, proposals on constitutional change increase with each passing month. 

A few of these contain some good ideas. These proposals are concerned with the economic empowerment of ordinary Kenyans. These are worth interrogating and debating, going forward.

Sadly, other proposals appear to be hurriedly prepared. Their ideas seem half-baked at best. These proposals focus almost exclusively on the distribution of political power. Of concern is that these proposals are now monopolising debate in the public domain.

Still, all hope is not lost. For among the few good proposals is the one put forward by Third Way Alliance.  It is fairly detailed, well written and has actually been submitted to parliament. 

Third Way Alliance has provided justifications – the economic rationale – behind their proposals. It has also provided an estimate of projected cost savings of Sh31.5 billion from the 2018/19 expenditure budget.

Third Way Alliance has clearly done a commendable job. However, there are two concerns that it may wish to consider. 

Census numbers

Firstly, in proposing that National Assembly representation be county-based, the party overlooks the need for representation by population. What this means is that all counties would have an equal number of MPs, regardless of census numbers.

Secondly, Third Way Alliance has focused almost exclusively on one branch of government – the legislature.  They have not given any serious consideration to the judiciary, and indeed the national and county executive.  Yet it is the executive branch at both levels that controls and spends the most.

It is important at this point to note that a referendum cannot really ‘fix’ budgetary appropriations.

These decisions are part of the budget making process.  Both parliament and the executive are required by law to arrive at a budget that makes sense for Kenya.

These requirements are stipulated in Chapter 12 of the constitution on Public Finance – specifically Article 221 on Budget Estimates and Annual Appropriations Bill. 

It is equally important to note that any of the provisions of Chapter 12 can be changed without a referendum.  We therefore do not need to squander Sh20 billion, as changes to Chapter 12 do not trigger Article 255 provisions. 

It is therefore important for constitutional change advocates to focus on economics, not just politics. We must therefore begin an objective and fair rationalisation of government bureaucracy. 

The first thing that ought to occur is for the President to offer leadership on this matter.  He should set clear direction by reminding members of his administration of his pledge to the Kenyan people – to build a public service that is fit for purpose.

Once this direction has been set, the rationalisation process can begin. State departments can be tasked with meeting an agreed cost-cutting target, say a 25 per cent budget cut. This is realistic, given that audits suggest that county and national bureaucracy may be losing as much as 33 per cent to wastage.

Alternative approach

An alternative approach would be to form sector working groups – with vital participation from key external stakeholders, tasked with proposing the core functions of each state department.  Groups should also agree on numerical stretch targets to keep discussions goal-oriented.

Either approach would compel the aggressive identification of unnecessary procedures and activities which add a lot of cost to the budget – but which deliver very little value to the Kenyan people.

It is important to underscore some salient points. The first is all change proposals must be directed at making government less costly to run. 

A 25 per cent reduction in county and national executive expenditure would save Sh493 billion from ordinary expenditure. This is 15 times greater that what the Third Way Alliance proposal would realise.  Moreover, this huge savings can fund 73.4 per cent of our development budget.

Beyond huge cost savings, rationalisation would improve efficiency of services.  It would do so by eliminating duplication between national and county governments, thereby improving service standards.

Eliminating duplication at ministerial and state department level would also deliver real value to ordinary Kenyans.

Focusing on these sorts of changes will definitely improve economic performance, perhaps even enabling Kenya to achieve double digit growth. It is these changes that we should therefore start discussing.

The constitutional change advocates should therefore give us a break from politics.  For what concerns most Kenyans today is improved economics, not more politics.

Charles Karanja is a management consultant specialising in strategy and change management