Columnists

Strengthen devolution to remain East African economic powerhouse

devolution

Leaders during the 7th and annual devolution conference held at Makueni County on Wednesday, November 24, 2021. PHOTO | DENNIS ONSONGO | NMG

The New Year is awash with political campaigns picking up from the previous year. From the last election, Kenya has been on a campaign mode, a detrimental factor to the country’s growth potential coupled with the already ravaging effects of Covid-19 on the economy.

As the country prepares for the General Election later in the year, the voters must prioritise issues they would want to see their leaders address, especially during their campaigns.

Pertinent Issues such as the strengthening of devolution must be given preference.

Whichever definition you may want to give it, federalism, decentralization or devolution, the concept is not new around the globe. There have been different forms of devolution in Europe, the US and in Africa, especially Nigeria and in other parts of the world for decades.

Since 2013, devolution has precipitated several economic activities in various parts of Kenya including an increase in supply chain activities, increased access to healthcare, access to tarmac roads, electricity supply, sustained growth in transportation and storage, information and communication technology, accommodation and food services, improved agricultural productions, forestry and fishing, accelerated manufacturing activities, aquaculture, housing among others.

The Kenya National Bureau of Statistics (KNBS) data indicate that the country has witnessed growth from a gross domestic product (GDP) of $50.41 billion in 2012 to around $107 billion in 2021.

The country’s budget increased tremendously to Sh3 trillion in the financial year 2021/22, from Sh956.9 billion in 2012/13, making Kenya the third-largest economy in sub-Saharan Africa, coming behind Nigeria and South Africa.

This growth is attributable to increased agricultural production, accelerated manufacturing activities, sustained growth in transportation and vibrant service sector activities.

Kenya has predominantly a young aggressive population, the majority of who are well educated and trained but cannot access productive and decent employment.

According to the World Bank, the estimated rate of youth unemployment in Kenya was at 7.27 percent in 2020. There is a need to strengthen devolution to create job opportunities for the youth and help address unemployment in Kenya.

The architects of devolution envisaged a bottom-up approach to tackling the problems retarding Kenya’s economic growth, service delivery and accountability.

Since its inception, the devolved governments have revived hopes and changed the lives of a majority of ordinary citizens.

In the previously marginalised counties, devolution is viewed as a blessing.

Devolution has been received in these counties with much appreciation due to its direct benefits to the citizens. It has made government services accessible.

The feeling of belonging to a country has been rekindled.

The government is now closer to the governed than before and there is a sense of balanced economic development in the whole country.

Research has shown that Africa still has the lowest intra-regional trade in the world, with only 15 percent of cross-border trade being intra-regional, and 65 percent comprising trade with developed markets.

Kenya should take advantage of its increasing dominance in the region, its strategic location, its aggressive youthful population, improved infrastructure, comparatively well-educated and trained human resource and technological advancement coupled with functioning devolved governments to reap the benefits of the African Continental Free Trade Area.

In the UK, devolution has been an evolving process that has responded well to public demands and transformed the United Kingdom’s political and constitutional landscape.

Devolution has also resulted in a more effective and tailored policy-making tool.

In India, Kerala State has undergone significant decentralisation. Due to the caste system in India, people in lower levels of society and the poor were seen as disenfranchised, with the government largely unresponsive to their needs.

Following decentralisation, Kerala has become the only state in India where it’s fully recognised that the primary accountability of the local government institutions is to the local community.

Overall budget

In the United States, the federal government outlays on areas such as agriculture, education, training and employment services as well as research and development remain very small components of the overall budget.

The federal government’s revenue base and spending patterns generate significant geographic budgetary redistribution among US devolved states.

However, this fiscal redistribution is overwhelmingly structural and related to the overall income levels of states, their demographic characteristics and the particular location of large federal government facilities.

The Constitution underscores the importance of equity to be an underlying principle of governance, which is constituent with its provision for devolution.

For sustainable economic growth, price stability, full employment, and maximum utilisation of available resources, successive governments must prioritise strengthening devolution to remain competitive within the region.

Panya is procurement and supply chain management consultant as well as lecturer and researcher at the Jomo Kenyatta University of Agriculture and Technology