The theory of fiscal decentralization in Kenya
The theory of fiscal decentralization in Kenya

Author: Leonard Mwakuni

Publisher: GRIN Verlag

Published: 2020-07-30

Total Pages: 28

ISBN-13: 3346216160

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Seminar paper from the year 2019 in the subject Law - Public Law / Constitutional Law / Basic Rights, , language: English, abstract: This work critically analyses this theory of fiscal decentralization and rationalizes how the constitution is prepared to mitigate any demerits of decentralization. It discusses the pillars of fiscal decentralization including political autonomy, financial autonomy (revenue assignment), expenditure responsibility, intergovernmental fiscal transfers, and sub-national borrowing. It also discusses the application of these pillars in Kenya and how the constitution mitigates the demerits of fiscal decentralization. This paper discusses the theory of fiscal decentralisation under the Kenyan devolved system of government and rationalises how the Constitution of Kenya, 2010, mitigates the demerits of decentralisation for the realisation of the objects of devolution in Kenya. Part II gives a description of the pillars of the theory of fiscal decentralisation. Part III discusses the application of the pillars of fiscal decentralisation under the Kenyan devolved system of government and rationalises how the 2010 Constitution mitigates the demerits of decentralisation. A comparative analysis of the Republic of South Africa(RSA) is adopted throughout this study. The RSA provides instructive lessons for Kenya for the proper implementation and sustainability of an effective fiscal decentralisation system in Kenya. The last part of this study gives some concluding remarks.

Effect of Decentralization Frameworks on Service Delivery in Devolved Governments of Kenya
Effect of Decentralization Frameworks on Service Delivery in Devolved Governments of Kenya

Author: Thomas Muema

Publisher: GRIN Verlag

Published: 2019-05-31

Total Pages: 80

ISBN-13: 3668950598

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Research Paper (postgraduate) from the year 2019 in the subject Economics - Monetary theory and policy, grade: B, Kenyatta University (Department of Entrepreneurship, Technology, Leadership and Management), course: Leadership and Governance, language: English, abstract: This study aims at analyzing the effect of decentralization frameworks on service delivery by devolved governments in Kenya. Devolution as a system of governance was introduced after the promulgation of the new constitution in 2010. Since then, both levels of governments have been working hard in order to implement all the new structures required for the operationalization of the new system. The statement of the problem shows that the process of implementation has faced many bottlenecks at the political, administrative and fiscal levels hence curtailing the speed of implementation and service delivery as detailed in the literature review. The research objectives have brought out the variables under the study as: to determine the effect of fiscal decentralization framework on service delivery by devolved governments in Kenya; to examine the effect of political decentralization framework on service delivery by devolved governments in Kenya; to investigate the effects of administrative decentralization framework on service delivery by devolved governments in Kenya, investigate the effects of economic decentralization framework on service delivery by devolved governments in Kenya to establish the moderating influence of regulatory frameworks on political, fiscal and administrative decentralization and service delivery in Kenya. The study will be undertaken in 14 counties covering all the main regions of Kenya. Several theories have been explored linked to the various variables considered under the study. These are: The Soufflé theory, The social capital theory, The principal Agent theory and finally the Accountability theory. The conceptual framework outlines the independent variables, as administrative, political and fiscal decentralization while the dependent variable is service delivery. The moderating variable is the regulatory framework. Data will be collected by the use of a questionnaire. The quantitative data will be captured with the help of a likert scale while the qualitative data will be captured with open- ended questions at the end of each variable. Data analysis will be done by both qualitative and quantitative methods, as both types of data will have been collected. Quantitative data will be analyzed by use of the statistical package for social sciences (SPSS).

Decentralization and Devolution in Kenya
Decentralization and Devolution in Kenya

Author: T. Nzioki Kibua

Publisher: University of Nairobi Press

Published: 2008

Total Pages: 19

ISBN-13: 9966846980

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Efficient delivery of public services in Africa and other developing regions has for a long time been hindered by highly centralized government bureaucracies (Mwabu et al., 2001). In Kenya, several efforts have been made to reduce unnecessary layers of government to make service provision to the populace more effective. This book reports on recent decentralization and devolution innovations in Kenya. The volume is organized into three parts and contains a total of 12 chapters including the introduction. The chapters in Part 1 (Structures and Institutions) provide a comprehensive analysis of institutional and organizational environment in which decentralization and devolution reforms have been taking place over the last three decades. Part 2 (Principles and Processes) contains chapters that clarify decentralization and devolution concepts, with applications to selected local authorities. The chapters in Part 3 (Service Delivery and Financing) illustrate advantages of provision and financing of services at the local level, with a focus on the role of community participation in improving accountability and efficiency in resource use.

Fiscal Decentralisation and Economic Growth
Fiscal Decentralisation and Economic Growth

Author: Naftaly Mose

Publisher:

Published: 2022

Total Pages: 0

ISBN-13:

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The effect of fiscal decentralization on economic growth has majorly been investigated in developed countries in comparison to sub-Saharan countries. This study will focus on sub-Saharan state and specifically Kenya's 47 county governments created by the new constitution, to determine how fiscal federalism has influenced their economic opportunities. For this purpose, the study will investigate the effect of tax revenue and expenditure decentralization assignments on county economic growth. The study was informed by neoclassical Solow-Swan growth model. In this context, a panel series data of 47 Kenyan counties from 2013 to 2017 are analyzed by using panel ordinary least squares estimators. During estimation, panel unit root analysis was performed to avoid misleading conclusion. From estimation result, expenditure decentralization has a positive effect on sub national growth. However, on the second objective, tax revenue manifested a negative relationship with GCP growth. In this context, the study conclude that fiscal decentralization components could be one of the key policy choices for developing economies that are considering to experiment or to deepen their decentralization processes for economic growth.

Lessons for Effective Fiscal Decentralization in Sub-Saharan Africa
Lessons for Effective Fiscal Decentralization in Sub-Saharan Africa

Author: Mr.Niko A Hobdari

Publisher: International Monetary Fund

Published: 2018-07-06

Total Pages: 63

ISBN-13: 1484358260

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Fiscal decentralization is becoming a pressing issue in a number of countries in sub-Saharan Africa, reflecting demands for a greater local voice in spending decisions and efforts to strengthen social cohesion. Against this backdrop, this paper seeks to distill the lessons for an effective fiscal decentralization reform, focusing on the macroeconomic aspects. The main findings for sub-Saharan African countries that have decentralized, based on an empirical analysis and four case studies (Kenya, Nigeria, South Africa, Uganda), are as follows: • Determinants and effectiveness: Empirical results suggest that (1) the major driving forces behind fiscal decentralization in sub-Saharan Africa include efforts to defuse ethnic conflicts, the initial level of income, and the urban-ization rate, whereas strength of democracy is not an important determi-nant for decentralization; and (2) decentralization in sub-Saharan Africa is associated with higher growth in the presence of stronger institutions. • Spending assignments: The allocation of spending across levels of gov-ernment in the four case studies is broadly consistent with best practice. However, in Uganda, unlike in the other three case studies, subnational governments have little flexibility to make spending decisions as a result of a deconcentrated rather than a devolved system of government. • Own revenue: The assignment of taxing powers is broadly in line with best practice in the four case studies, with the bulk of subnational revenue coming from property taxes and from fees for local services. However, own revenues are a very small fraction of subnational spending, reflecting weak cadaster systems and a high level of informality in the economy.

Fiscal Decentralization and Local Finance in Developing Countries
Fiscal Decentralization and Local Finance in Developing Countries

Author: Roy Bahl

Publisher: Edward Elgar Publishing

Published: 2018-03-30

Total Pages: 430

ISBN-13: 1786435306

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This book draws on experiences in developing countries to bridge the gap between the conventional textbook treatment of fiscal decentralization and the actual practice of subnational government finance. The extensive literature about the theory and practice is surveyed and longstanding problems and new questions are addressed. It focuses on the key choices that must be made in decentralizing, on how economic and political factors shape the choices that countries make, and on how, by paying more attention to the need for a more comprehensive approach and the critical connections between different components of decentralization reform, everyone involved might get more for their money.

Fiscal Decentralization in Kenya
Fiscal Decentralization in Kenya

Author: Obuya Bagaka

Publisher:

Published: 2008

Total Pages: 43

ISBN-13:

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This paper explores the financial implications of fiscal decentralization policies on the central government's operating budget in Kenya. The paper evaluates how devolved funds under the constituency development fund (CDF) have been utilized to start healthcare capital projects (clinics) at the local level. The study finds that fiscal decentralization has promoted allocative efficiency and equity but at a cost of exporting tax burdens (operations and maintenance) to the central government emanating from capital projects implemented at the local level. The exported tax burdens have policy implications and call for reforms of the CDF program to reflect a benefit-expenditure structure.