President William Ruto’s recent directive to ensure adequate budget transfers to support devolved functions marks a significant step in enhancing the effectiveness of county governments in Kenya. This move, which comes at the beginning of the new financial year in July 2024, aims to align resources with devolved responsibilities, thereby improving service delivery across the country. Speaking at the 11th National and County Governments Coordinating Summit held at State House Nairobi, Ruto emphasized the critical role of adequate funding in enabling counties to perform their functions effectively.
The Inter-Governmental Relations Technical Committee (IGRTC) has been instrumental in unbundling functions between the national and county governments. This process is crucial as it ensures that each level of government operates within its mandate, avoiding overlaps and ensuring efficiency. The gazettement of several roles represents a milestone in this process, marking a clear division of responsibilities that facilitates better service provision to citizens.
In his address, President Ruto acknowledged the fiscal challenges facing the nation, attributing them to inherited economic vulnerabilities and incomplete implementation of devolution. He highlighted that these challenges should not be misconstrued as a lack of commitment to devolution but rather as temporary obstacles that need to be addressed through strategic planning and cooperation between the two levels of government. “This challenge cannot and should not be mistaken for a lack of commitment to devolution,” Ruto noted, “Rather, it is a temporary difficulty that requires unity of purpose and collaboration.”
The President’s directive reflects his administration’s commitment to devolution as a mechanism for national development. He underscored the importance of aligning resources with the strategic priorities of counties to drive socio-economic transformation. Ruto called for regular engagement and consultation with county leadership, emphasizing that the interdependence between the national and county governments requires a cooperative approach. “While the two levels of government are distinct, they are also interdependent,” Ruto stated. “Our relationship must be built on consultation and collaboration to achieve our shared goals.”
The President also highlighted the critical role of the IGRTC in resolving disputes between the national and county governments. By fostering cooperation, the committee has been successful in preventing conflicts that could delay projects and services. Ruto urged the ministries, departments, and agencies to expedite dispute resolution through alternative mechanisms to avoid unnecessary costs and delays, thereby enhancing public trust and service delivery. This approach is pivotal in ensuring that devolution delivers tangible benefits to the people, particularly in priority areas such as food security, affordable housing, MSMEs, manufacturing, universal healthcare, and digital adoption.
The summit witnessed a broad consensus on the need for strategic collaboration to address the economic challenges facing the nation. Ruto highlighted the progress made in stabilizing the economy, with inflation falling to a historic low of 2.8%, a strengthened currency, and robust foreign exchange reserves. However, he also acknowledged critical areas requiring urgent attention, such as high public debt, pending bills, unsustainable wage bills, and inefficiencies in revenue collection. “To address these constraints, unity of purpose and sustained collaboration between National and County governments is essential,” Ruto noted.
Ruto’s confidence in overcoming operational challenges related to the redesigned universal health coverage strategy, Taifa Care, was also evident. Although the transition to the Social Health Insurance Fund and Social Health Authority has faced hurdles, the President expressed optimism about resolving these challenges soon. “For the record, the scale, boldness, and ambition of Taifa Care are unprecedented,” Ruto said. “We are confident that the challenges will be resolved soon as we continue to engage with county leadership and stakeholders.”
Deputy President Kithure Kindiki echoed Ruto’s sentiments, stressing the importance of devolution in decentralizing resources and decision-making to bring services closer to the people. “Our convening here is in line with what is expected of us to ensure devolution works,” Kindiki said. Council of Governors Chairperson Ahmed Abdullahi added that devolution has proven to be a catalyst for sustainable development by giving governance a human face and ensuring decision-making remains close to the people. “We must continue on this path to give governance a human face and ensure decision-making remains close to the people,” Abdullahi noted.
The summit and President Ruto’s directive signal a renewed commitment to devolution in Kenya, emphasizing the need for harmonious inter-governmental relations to drive national development. As the financial year begins, the focus will be on aligning resources with devolved functions to ensure that the benefits of devolution reach all Kenyans. Through regular engagement and strategic collaboration, the government aims to overcome existing challenges and promote sustainable development, bringing services closer to the people and fostering economic growth across the country.
