14 years since advent of counties means that they should have been weaned of equitable share of revenue

Posted byDr. Daniel Mutegi Giti, PhD.Posted inUncategorized

On 27th August 2024, Kenya celebrated 14 years since the advent of devolution and coming into existence of counties. According to the Commission on Revenue Allocation (CRA) since 2013, counties have utilized revenues totaling Ksh. 3.2 trillion, which includes Ksh. 2.5 trillionas equitable share, Ksh. 142 billion national government conditional grants, and Ksh. 191 billionin loans and grants from development partners. Counties have also collected their own revenues amounting to Ksh. 271 billion. The 2024/2025 financial year allocations have been contested by the Counties. The Council of Governors (CoG), supported by the CRA has rejected a proposal to deduct counties equitable share from Ksh. 400 billion to 380 billion. 14 years from the advent of counties should project a different scenario, and one of which is that by now, counties should have developed effective Own Source Revenue (OSR) and other financial resources mobilization.

Secondly, learn from the California state in the US, which has a $4 trillion economy, and if it was a country, it would be the fifth largest economy in the world after the USA, China, Germany and Japan. California’s economy dwarfs those of India, UK, France, Russia, Canada among others and is the largest sub-national economy in the world. Why is California rich? The answer lies to its domination by technology (as shown by the fact that 11 of the Fortune 100 companies and 53 out of the Fortune 500 companies have their headquarters in California), trade, media, tourism, and agriculture. The two strongest economic areas surround Los Angeles (Media, trade, Tourism) and San Francisco (technology, trade, and tourism). Counties should be attractive to investments to local and international capital by for example developing investment masterplans.

Thirdly, learning from California, counties need to work on theirtax and rates incentives and come up with strategic investing to further develop its technology industries and other key sectors of the economy with potential to pull many from poverty, carefully growing domestic industry by leveraging trade policy and government investment. Fourthly, there is need to focus on aligning and accelerating investments in infrastructure like provision of housing infrastructure to ensure sustainable decent and quality housing; transportation such that goods and services can easily move from one corner to the other; and provision of safe and clean drinking water and water for irrigation to stimulate agricultural production. Fifth, counties should develop industrialization strategies that captures, concentrates, and re-shores growth among various high-value industries like Research and Development, renewable energy production, biotech, manufacturing among others. Dr Giti is an urban management, public – private partnerships (PPP) and environment specialist. mutegigiti@gmail.com , @danielgiti

Published by Dr. Daniel Mutegi Giti, PhD.

I hold a Ph.D. in Urban Management; Master of Urban Management and Post Graduate Diploma in Housing from the University of Nairobi. My Undergraduate was a Geography major and Sociology minor from Egerton University. I am an Assistant Director for Housing - Slum Upgrading, State Department for Housing and Urban Development, within the Ministry of Transport, Infrastructure, Housing, Urban Development and Public works in Kenya. I have hands on experience on matters housing and urban development process in Kenya, including developing skills necessary to tackle the underfunding of housing and urban sectors through innovative financing and greater private sector participation through models like application of Public Private Partnerships (PPPs) in the infrastructure and housing development in Kenya and Africa.

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