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.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Pillars of fiscal decentralisation
- Political autonomy
- Expenditure responsibility
- Revenue assignment
- Intergovernmental fiscal transfers
- Sub-national borrowing
- Application of the pillars of fiscal decentralisation in Kenya and how the 2010 Constitution mitigates demerits of decentralisation
- Application of political autonomy under the 2010 Constitution
- Application of expenditure responsibility under the 2010 Constitution
- Application of revenue assignment under the 2010 Constitution
- Taxation powers
- Budgetary autonomy
- Transparency and accountability
- Hard budget constraint
- Application of intergovernmental fiscal transfer under the 2010 Constitution
- Application of sub-national borrowing under the 2010 Constitution
- Concluding remarks
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This essay critically analyzes the theory of fiscal decentralization as implemented in Kenya's 2010 Constitution, specifically examining how it mitigates potential drawbacks of decentralization. The study draws comparisons to South Africa's experience with fiscal decentralization to offer insights for Kenya's system.
- Understanding the key pillars of fiscal decentralization, including political autonomy, expenditure responsibility, revenue assignment, intergovernmental fiscal transfers, and sub-national borrowing.
- Analyzing how these pillars are implemented within the framework of the Kenyan Constitution and how they address potential challenges of decentralization.
- Exploring the application of political autonomy, expenditure responsibility, and revenue assignment under the Kenyan Constitution, including aspects like taxation powers, budgetary autonomy, transparency, and accountability.
- Examining the role of intergovernmental fiscal transfers and sub-national borrowing in the Kenyan system.
- Drawing comparisons to South Africa's fiscal decentralization model and its implications for Kenya's implementation.
Zusammenfassung der Kapitel (Chapter Summaries)
The introduction establishes the context of Kenya's devolution of power to county governments through the 2010 Constitution. It emphasizes the concept of a "cooperative" system where the national and county governments are interdependent and work together. The introduction defines fiscal decentralization as a key aspect of devolution, focusing on the financial distribution between different levels of government.
The second chapter delves into the five key pillars of fiscal decentralization: political autonomy, expenditure responsibility, revenue assignment, intergovernmental fiscal transfers, and sub-national borrowing. It highlights how these pillars are interconnected and contribute to effective decentralization.
The third chapter explores the application of these pillars in Kenya's decentralized system, specifically analyzing how the 2010 Constitution mitigates potential demerits of decentralization. The chapter examines the application of political autonomy, expenditure responsibility, and revenue assignment, including specific aspects like taxation powers, budgetary autonomy, transparency, and accountability.
Schlüsselwörter (Keywords)
The core keywords and focus topics of this study include devolution, fiscal decentralization, political autonomy, financial autonomy, expenditure responsibility, intergovernmental fiscal transfers, revenue assignment, sub-national borrowing, budgetary autonomy, and hard budget constraint. The analysis centers on the application of these concepts within the context of the Kenyan Constitution and their impact on the effectiveness of the decentralized system.
- Quote paper
- Leonard Mwakuni (Author), 2019, The theory of fiscal decentralization in Kenya, Munich, GRIN Verlag, https://www.grin.com/document/593933
