Devolving resources and absorption capacity rests in top leaders not Treasury’s whims

Public Watchdog

Yes, we are engaged in a red-herring exercise on matters of definition of revenues — reading and interpreting the Constitution on the basis of what —we seek to achieve from our individual or vested perspective. The known actors are technocrats at the Ministry of Finance and a Government Task Force on Devolved Government with certainly many political invisible hands at play.

In the end, some of the actors desire to preserve status quo characteristic of our entrenched culture of resisting change and conserving power in a devolved environment. Yet, at this stage, one thing is absolutely clear, the people’s expectation on devolution is exceedingly higher than what possibly is realistically achievable in the first five year-term of the next parliament. Parliament here now means National Assembly and the Senate.

Vested interests

Kenyans embraced devolution, as a fundamental component of national structure of governance in the Constitution of Kenya.

Why? Kenyans yearn, not only to have a say in determining who leads them at national and county level, but with respect to resources allocations and priorities. National government hitherto have enjoyed centralised control of resources and unfettered power in determining development agenda and resource allocation leading to skewed level of development in certain areas.

This can at best be characterised as lopsided and worse still, development priorities and resource allocation remain captive of vested political and/or economic interests. What, then, are compelling issues on current resources devolution debate?

First, all actors, technocrats, economic, political or any vested actors must be cognisant of the fact that we are now operating under a new constitutional dispensation.

It cannot, must not and shall not be a business-as-usual environment where those in positions of power and authority can seek to lord over the people in disregard to the dictates of the Constitution.

Yes, we cannot continue to build a disproportionate Kenya at the expense of preserving status quo and ignoring continued deterioration in standard of living of our people across the political divide.

We must now change course, and re-orient every structure in government and those running a transitional government to respect reasons behind devolved government. It must not become or seen as selfish frustration of the progress by those presently running the Treasury no matter the motivation or level of influence.

Today, it is them, but in the future, it will be some other people controlling the system.

Secondly, politics, intrigue and machinations aimed at controlling resources and attaining political power are responsible for current procrastination with respect to devolution structures and those of resources. One wonders how we can spend weeks debating what constitute revenues?

National Revenues must include all revenues of whatever description excluding county revenues, but including dividend or sale of shares in any national investments and grants, taxes, rents, rates whether collected directly, or by Kenya Revenue Authority or other agency.

Desired impact

It must be the spirit that matters and technocrats and leaders alike must understand that the people are becoming restless. What really matters now is how Kenya, as a nation — can best be managed and developed to benefit the people through national and devolved resources, without disparities that could eventually undermine national social, economic and political stability.

Why? It is evident from our immediate past that the people’s disquiet has been centred on largely on disparities, inequitable national resource distribution including human capital and development.

However, this has further influenced political alliances that have unfortunately taken the form of tribal and regional alliances aimed at nothing but attainment of political power to control of resources.

Thirdly, we must develop appropriate management and accountability systems to ensure building of absorption capacity to utilise devolved resources to have the desired impact of bridging the development gap. We can only, confront the melancholy of poverty with pragmatic measures grown at grassroots level and nourished through uninterrupted flow of devolved resources.

This is the reason the Constitution provides for establishment of an Equalisation Fund to help accelerate resource allocations to counties that have hitherto been marginalised.

The Fund shall be paid one half percent of all revenues collected by the national government each year calculated on the basis of most recent audited accounts of revenue received, as approved by the National Assembly.

It is telling that the fund is for a limited period of 20 years. The Constitution further restricts the usage of the equalisation resources to critical infrastructure like roads, water, health facilities and electricity.

Finally, it is instructive that the Constitution has only provided a minimum percentage of equitable share of revenue raised nationally each financial year to allocate to county governments not be less than 15 per cent of all revenue collected by national government.

Yes, emphasis on all revenues! Thus, it is clear that most recent audited accounts of revenues received, as approved by the National Assembly cannot purport under any circumstance to eliminate sale of shares or grants or any revenues for that matter, this is a matter of compelling public interest!

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