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.
Table of Contents
1. Introduction
2. Pillars of fiscal decentralisation
2.1 Political autonomy
2.2 Expenditure responsibility
2.3 Revenue assignment
2.4 Intergovernmental fiscal transfers
2.5 Sub-national borrowing
3. Application of the pillars of fiscal decentralisation in Kenya and how the 2010 Constitution mitigates demerits of decentralisation
3.1 Application of political autonomy under the 2010 Constitution
3.2 Application of expenditure responsibility under the 2010 Constitution
3.3 Application of revenue assignment under the 2010 Constitution
3.3.1 Taxation powers
3.3.2 Budgetary autonomy
3.3.3 Transparency and accountability
3.3.4 Hard budget constraint
3.4 Application of intergovernmental fiscal transfer under the 2010 Constitution
3.5 Application of sub-national borrowing under the 2010 Constitution
4. Concluding remarks
Objectives & Key Themes
This work provides a critical examination of the fiscal decentralisation model established by the Constitution of Kenya 2010. It evaluates how the constitutional framework incorporates five core pillars of fiscal decentralisation and assesses the effectiveness of these provisions in mitigating potential risks associated with devolved governance, while drawing comparative lessons from the South African experience.
- Constitutional framework of devolution in Kenya
- Core pillars of fiscal decentralisation
- Comparative analysis with South Africa’s decentralised system
- Mitigation of demerits of decentralisation
- Assessment of financial and political autonomy for county governments
Excerpt from the Book
3.1 Application of political autonomy under the 2010 Constitution
The 2010 Constitution establishes two levels of government, that is, the national and county levels. It also provides for elected governments at both the national and county levels. Political autonomy encompasses that the forty-seven counties are not created by the national government. Instead, governments at the county level are created by the 2010 Constitution as an exercise of the sovereign power of the Kenyan people. Governments at the county level are elected directly by the people. The Kenyan people at the county level elect leaders of their own choice during elections. Furthermore, each level of government elects its own political structures which it controls thus making these governments distinct. The county governments as devolved units are relatively autonomous from the national government. As a result, they are not subject to the control of the national government.
The county governments are made up of their respective County Assemblies and County Executive Committees. This is akin to the constitutional requirement that county governments should have their own legislative and executive structures. Politically, the national government is only required to enact some legislation and policy and let counties implement the same autonomously and with their own discretion but within the law. The County governments have mandate directly from the Kenyan people, independent from the influence and control of the President. As a result, county governments are only accountable to the electorate.
Summary of Chapters
1. Introduction: Presents the background of Kenya's 2010 Constitution and its introduction of a devolved system of government, defining the scope of fiscal decentralisation within this context.
2. Pillars of fiscal decentralisation: Describes the five essential building blocks of an effective fiscal decentralisation system: political autonomy, expenditure responsibility, revenue assignment, intergovernmental fiscal transfers, and sub-national borrowing.
3. Application of the pillars of fiscal decentralisation in Kenya and how the 2010 Constitution mitigates demerits of decentralisation: Provides a comprehensive analysis of how the Kenyan legal framework implements the identified pillars, including detailed sections on political, financial, and administrative aspects, with comparative references to South Africa.
4. Concluding remarks: Summarizes findings and suggests improvements, arguing that while Kenya is on the right track, further enhancements to taxation powers and expenditure devolution are necessary for successful outcomes.
Keywords
Devolution, Fiscal decentralisation, Political autonomy, Financial autonomy, Expenditure responsibility, Intergovernmental fiscal transfers, Revenue assignment, Sub-national borrowing, Budgetary autonomy, Hard budget constraint
Frequently Asked Questions
What is the core focus of this publication?
The paper focuses on the critical analysis of the constitutional framework supporting fiscal decentralisation in Kenya following the adoption of the 2010 Constitution.
What are the central themes covered?
Key themes include the political and financial autonomy of counties, the division of expenditure responsibilities, intergovernmental transfer mechanisms, and the safeguards implemented to mitigate the risks of decentralisation.
What is the primary goal of this research?
The goal is to rationalize how the Kenyan Constitution attempts to create an effective, sustainable system of fiscal decentralisation by analyzing the five foundational pillars of the theory.
Which scientific methodology is applied?
The research uses a descriptive and comparative legal analysis, frequently contrasting the Kenyan system with the constitutional jurisprudence and fiscal arrangements of South Africa.
What topics are discussed in the main body?
The main body examines the practical application of political autonomy, expenditure responsibilities, revenue assignment (including taxation powers and budgetary autonomy), and the mechanisms of fiscal transfers and sub-national borrowing.
Which keywords define this work?
The work is characterized by terms such as devolution, fiscal decentralisation, political and financial autonomy, intergovernmental fiscal transfers, and hard budget constraints.
How does the Constitution manage the risk of the President suspending county governments?
The Constitution mitigates this risk by requiring the intervention of an independent commission of inquiry, the approval of the Senate, and restricting suspensions to emergency situations only.
What conclusion does the author reach regarding Kenyan taxation powers?
The author concludes that county governments currently possess weak revenue-raising powers and suggests that the scope of their taxation should be expanded to include high-yield sources like water and electricity charges.
- Citation du texte
- Leonard Mwakuni (Auteur), 2019, The theory of fiscal decentralization in Kenya, Munich, GRIN Verlag, https://www.grin.com/document/593933
