Decentralised Funds in Kenya
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- Millicent Griffith
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2 Working Paper on Decentralised Funds in Kenya Prepared by Wanjiru Gikonyo
3 2006 Design & Layout by: Noel Creative Media Limited
4 Table of Contents Acknowledgements Executive Summary iv vi 1.0 Introduction and Background Overview of Decentralisation in Kenya HSF Forum Findings and Recommendations Conclusions Recommendations 25 Annex 1 HSF Forum Programme 28 Annex 2 HSF Forum List of Participants 31 iii
5 Acknowledgements The is immensely grateful to all those who contributed in one way or another in the preparation of this paper. We extend our appreciation to the participants of the HSF forum on decentralised funds, which formed the basis for the preparation of this paper. We particularly thank Dr. Sambili,Permanent Secretary Ministry of Planning and National Development for supporting the event, and we thank Mr. Joseph Mukui, the Director of Rural Planning in the ministry, who graciously attended on his behalf at both the opening and closing ceremonies. We are equally grateful to representatives of government from the various ministries who joined in our extensive deliberations. We are also indebted to members of NGOs, academia, private sector, and representatives of development agencies, media and all those who graced the occasion. Their generous contributions greatly enriched our perspectives. Our sincere thanks go to the German Technical Agency (GTZ) for their support during the conference as well as to the participants of the post-forum meeting. Further, we wish to acknowledge the contributions of the following institutions and individuals who assisted us during the preparatory stage of the HSF forum: the Kenya Institute of Public Policy Research and Analysis (KIPPRA), the Institute of Economic Analysis (IEA), ActionAid, Social Reform Centre (Sorec) and Institute for Civic Affairs and Development (ICAD) - institutions with experience in working with decentralised funds. iv
6 Specifically, we appreciate the invaluable inputs of the technical group that was convened to provide a preconference road map. In this regard we extend our gratitude to Dr. Eric Aligula of KIPPRA, Josephine Hongo of the Ministry of Finance, Gideon Ochanda of ICAD, and Rev. Gathaka of the Ecumenical Centre for Justice and Peace for their individual contributions. We are grateful to the forum presenters and moderators for their expertise and time and to Veronica Nduva of ICAD who prepared the working document for the forum and served as rapporteur. Special thanks also go to Lineth Oyugi and Dr. Adams Oloo who generously shared their expertise and time in reviewing this paper and lastly, we are equally indebted to all those who assisted in this venture, not least the staff of and the Ecumenical Centre for Justice and Peace who worked tirelessly to ensure its success. v
7 Executive Summary In July of 2006 the brought together multi-sectoral practitioners in the field of decentralised funds for a two day forum, with a view to identifying the principles and standards of best practice in decentralised funds management. Motivated by reports citing cases of abuse of these funds, we embarked on this mission very aware that our role was to facilitate and not drive the process, and in that regard the views herewith are a synthesis of the contributions made by local stakeholders at the forum. We, however, undertook the responsibility of making specific recommendations in line with the outputs of the event. This paper gives a brief historical overview of decentralisation in Kenya, and in so doing, notes that successive funds have been created without due consideration of past initiatives, sometimes replicating past weaknesses and in other cases abandoning strong models of implementation. This paper then delves into the findings of the multi-sectoral forum, which identified key problem areas or themes around which this paper is structured. Conference participants emphasised the need for the government to clearly identify the unit of devolution to enhance democracy and good governance based on the most representative, efficient and cost effective model for the nation. Conference participants also highlighted some of the institutional challenges inherent in the present system, which is characterised by a multiplicity of funds with numerous overlaps (e.g. education funds are given under vi
8 LATF, SSEB, CDF), a failure to clarify roles of existing institutions in respective funds resulting in parallel administrative structures and inefficient use of resources, the absence of a clear formula regarding how and why funds are established and discontinued leaving them susceptible to political whims, and lack of clarity between fund objectives and national development objectives. The numerous reported excesses and abuses in CDF implementation brings to the fore the critical need for separation of powers to be safeguarded at all levels of fund implementation. Participants were emphatic that the legal framework of respective funds should safeguard institutional checks and balances to strengthen governance and accountability in funds implementation. The forum also highlighted the lack of institutional mechanisms to facilitate and safeguard community participation in various funds, and the need for an implementation framework which entrenches and protects public participation. The forum further identified the dire shortage of capacity of both public officers and communities to effectively engage in the management of decentralised funds. Capacity building is one area requiring multi-sectoral engagement to equip implementing stakeholders with relevant skills. The forum further identified the poor implementation of existing anti-corruption laws, and weak structures in enforcing accountability in funds management. In conclusion, this paper makes several recommendations, namely: vii
9 1. There is a need to clarify and simplify the decentralisation processes in Kenya by harmonising existing funds and their structures vertically and horizontally. An overarching decentralisation policy would be a necessary step in achieving this feat. Such a policy would address the following concerns: n n n n It would clearly identify the unit of devolution to enhance democracy and good governance based on the most representative, efficient and cost effective model for the nation; It would also harmonise the funds to promote predictability, complimentarity, sustainability and continuity. It would establish in-built mechanisms to compel performance, and integrate local development goals with national development priorities; The institutional framework for each fund should safeguard the principle of separation of powers at both national and local levels; The decentralisation framework needs to enshrine and protect public participation, to give the public real, genuine influence and representation in the management of local development funds. There is also a need to streamline the funds to allow effective public participation; n The decentralisation framework needs to entrench effective mechanisms for monitoring, evaluation and auditing the funds. 2. There is a need for comprehensive, evaluatory and comparative research on the funds as a totality to inform effective policy development. viii
10 3. There is a pressing need to intensify civic education, and institute comprehensive nationwide capacity building for both public officials and the public to strengthen skills and tools to effectively manage these funds. The enormity of this challenge undoubtedly calls for multisectoral collaboration to support government initiatives in this area. We believe that this paper will make a valuable contribution in this regard. Dr. Wolf Krug Regional Representative ix
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12 Hanns Seidel-Who we Are (HSF) is a German political foundation affiliated to the Christian Social Union in Germany, and established 40 years ago by Hanns Seidel, a former Prime Minister of Bavaria ( ). HSF has programs in more than 50 countries of which, 16 are in Africa. HSF has been represented in Kenya since HSF objectives include the promotion of good governance and responsible leadership, the support of free and fair elections, to foster the accountable and transparent allocation of public funds and uphold the fight against corruption, to promote political dialogue between various ideological and religious groups, the support of human rights, and to empower civil society to fully participate in a multiparty democracy. Our programs in Kenya Civic Education: Since 1996 HSF has supported nationwide civic education through our long time partners, the Ecumenical Centre for Justice and Peace. Promoting Political Dialogue: HSF continues to engage in initiatives of political capacity building and those that promote political dialogue, through round table discussions and other fora. NEPAD/APRM: HSF is also a keen supporter of the New Partnership for Africa s Development (NEPAD) initiative since its inception. NEPAD. HSF in conjunction with the Kenya NEPAD Secretariat is proud to have been able to host the first Africa technical experts meeting on APRM during April of 2006, in Nairobi. Peace and Security: HSF in collaboration with the Institute of Security Studies (ISS) are addressing issues of human security in the region and in particular are currently studying the prospects for regional security, and have produced a paper in this regard entitled Facing Reality in the Greater Horn of Africa.
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