Local Level Funding As A Poverty Exit Local Level Funding As A Poverty Exit Route: Experiences from Local Level Route: Experiences from Local Level

Jurisdictions in KenyaJurisdictions in Kenya

Oyuke AbelOyuke Abel

University of Nairobi University of Nairobi

Kenya.Kenya.

I:I: BackgroundBackgroundCenter for Governance and Development Center for Governance and Development (CGD) Project(CGD) ProjectFunded by UK’s DFID-KenyaFunded by UK’s DFID-KenyaProject Aim: ‘Promoting Public Project Aim: ‘Promoting Public Participation in Local GovernanceParticipation in Local Governance Assessment to provide baseline data to assist Assessment to provide baseline data to assist CGD/DFID pursue a wide range of activities CGD/DFID pursue a wide range of activities in enhancing democratic governance in Kenya in enhancing democratic governance in Kenya through strengthening the checks and through strengthening the checks and balances of state institutions.balances of state institutions.

Background Cont’dBackground Cont’d

Specifically: CGD/DFID-Kenya seek to enhance Specifically: CGD/DFID-Kenya seek to enhance the capacity of other CSOs, residents associations, the capacity of other CSOs, residents associations, other relevant organizations and communities to other relevant organizations and communities to participate in managing, monitoring, evaluating participate in managing, monitoring, evaluating projects funded by the devolved fundsprojects funded by the devolved funds

Assumption: through active participation and Assumption: through active participation and involvement, they will eventually benefit more involvement, they will eventually benefit more from the decentralized funds. from the decentralized funds.

II:II: The FundsThe Funds

Local Authority Transfer Fund (LATF), Local Authority Transfer Fund (LATF), Constituency Development Fund (CDF), Constituency Development Fund (CDF), District Roads Maintenance Levy Fund, District Roads Maintenance Levy Fund, Constituency/District HIV/AIDS Fund, Constituency/District HIV/AIDS Fund,

(Community Account Fund)(Community Account Fund) Secondary Schools Education Bursary FundSecondary Schools Education Bursary Fund Free Primary EducationFree Primary Education Rural Electrification Levy FundRural Electrification Levy Fund

Expected ResultsExpected Results

Increased community awareness on Increased community awareness on available opportunities within the available opportunities within the decentralized funds strategydecentralized funds strategy

Enhanced capacity of CBOs and Enhanced capacity of CBOs and communities to lobby and influence the communities to lobby and influence the management of decentralized fundsmanagement of decentralized funds

Increased capacity of communities and local Increased capacity of communities and local groupings to participate in decentralized groupings to participate in decentralized fund processesfund processes

1.1. Secondary School Education Secondary School Education Bursary Fund (SEBF)Bursary Fund (SEBF)

Established in 1993/4 by the President through a Established in 1993/4 by the President through a pronouncementpronouncement

Seeks to protect the country’s poor and vulnerable Seeks to protect the country’s poor and vulnerable groups from escalating costs of secondary groups from escalating costs of secondary education, thus reducing inequalitieseducation, thus reducing inequalities

Aims to increase enrolment in secondary schools Aims to increase enrolment in secondary schools as well as completion of the sameas well as completion of the same

Specific targets are orphans, girl children and Specific targets are orphans, girl children and those from poor households and urban slums, those from poor households and urban slums, capable of good results. capable of good results.

1.1. SEBF SEBF Cont’dCont’d Students send their applications through their Students send their applications through their

respective school heads. respective school heads. SEBF is not based on a fixed share of the national SEBF is not based on a fixed share of the national

budget. budget. Allocations vary depending on the Ministry of Allocations vary depending on the Ministry of

Education’s annual provisions, the number of Education’s annual provisions, the number of students enrolled in secondary schools within each students enrolled in secondary schools within each constituency, national secondary school constituency, national secondary school enrolments and poverty indices. enrolments and poverty indices.

Since 2003/4, SEBF has been coordinated by Since 2003/4, SEBF has been coordinated by Constituency Bursary Committees, which screen Constituency Bursary Committees, which screen potential beneficiaries, coordinate and disburse potential beneficiaries, coordinate and disburse the funds, and prepare reports to the Ministry of the funds, and prepare reports to the Ministry of EducationEducation..

1.1. Secondary School Education Secondary School Education Bursary Fund (SEBF) Bursary Fund (SEBF) Cont’dCont’d

Local community leaders are represented on Local community leaders are represented on SEBF committees. SEBF committees.

Affirmative action ensures a minimum of Ksh Affirmative action ensures a minimum of Ksh 500,000 is allocated to constituencies in Arid and 500,000 is allocated to constituencies in Arid and Semi Arid Lands (ASAL). Semi Arid Lands (ASAL).

The minimum annual allocation per beneficiary The minimum annual allocation per beneficiary by school category: by school category: Ksh 5,000 for day schools; Ksh 5,000 for day schools; Ksh 10,000 for boarding schools; and Ksh 10,000 for boarding schools; and Ksh 15,000 for national schools. Ksh 15,000 for national schools.

2.2. Road Maintenance Levy Fund Road Maintenance Levy Fund (RMLF)(RMLF)

Established in 1993 through the Road Established in 1993 through the Road Maintenance Levy Fund Act. Maintenance Levy Fund Act.

Caters for the maintenance of public roads, Caters for the maintenance of public roads, including local authority unclassified roads. including local authority unclassified roads.

Made up from a fuel levy on petroleum Made up from a fuel levy on petroleum products and transit toll collections. products and transit toll collections.

Administered by the Kenya Roads Board, Administered by the Kenya Roads Board, established in 1999. established in 1999.

2.2. RMLF RMLF Cont’dCont’d Targets maintenance of roads under the control of Targets maintenance of roads under the control of

the Ministry of Roads and Public Works, Kenya the Ministry of Roads and Public Works, Kenya Wildlife Service and District Roads Committees. Wildlife Service and District Roads Committees.

60% of the fund’s annual allocation goes to 60% of the fund’s annual allocation goes to international and national trunk and primary international and national trunk and primary roads;roads;

24% to secondary roads; and 24% to secondary roads; and 16% to rural roads. 16% to rural roads. The latter portion, (16%) is managed by district The latter portion, (16%) is managed by district

road committees, and is shared equally among road committees, and is shared equally among constituencies within a district. constituencies within a district.

3.3. Rural Electrification Programme Rural Electrification Programme Levy Fund (REPLF)Levy Fund (REPLF)

Established in 1998 through sections 129 & 130 of Established in 1998 through sections 129 & 130 of the Electric Power Act (1997). the Electric Power Act (1997).

Aims to finance electrification of rural and other Aims to finance electrification of rural and other underserved areasunderserved areas

Applicable programmes: relating to design, Applicable programmes: relating to design, construction, equipping and operation & construction, equipping and operation & maintenance of rural electrification projects maintenance of rural electrification projects identified by communities. identified by communities.

3.3. REPLF Cont’dREPLF Cont’d

Institutional framework: Ministry of Institutional framework: Ministry of Energy, Electricity Regulatory Board, Energy, Electricity Regulatory Board, Kenya Power & Lighting Company (KPLC Kenya Power & Lighting Company (KPLC - the implementing agency), District - the implementing agency), District Development Committees (DDCs), Development Committees (DDCs), Constituency Development Fund (CDF) Constituency Development Fund (CDF) committees and local community committees and local community committees for specific projectscommittees for specific projects

4.4. Local Authority Transfer Fund Local Authority Transfer Fund (LATF)(LATF)

Established in 1999 through the LATF Act No. 8 of Established in 1999 through the LATF Act No. 8 of 1998, 1998,

Objective: improve service delivery, financial Objective: improve service delivery, financial management, and reduce outstanding debts of local management, and reduce outstanding debts of local authorities (LAs). authorities (LAs).

comprises 5% of the national income tax collection in comprises 5% of the national income tax collection in any year, any year,

currently makes up approximately 24% of local currently makes up approximately 24% of local authority revenues. authority revenues.

At least 7% of total fund is shared equally among the At least 7% of total fund is shared equally among the country's 175 local authorities; country's 175 local authorities;

4.4. LATF Cont’dLATF Cont’d

60% of the fund is disbursed according to 60% of the fund is disbursed according to the relative population size of the local the relative population size of the local authorities.authorities.

balance is shared out based on the relative balance is shared out based on the relative urban population densities. urban population densities.

LATF monies are combined with local LATF monies are combined with local authority revenues to implement local authority revenues to implement local priorities.priorities.

4.4. LATF Cont’dLATF Cont’d An advisory committee comprising the private An advisory committee comprising the private

sector, the Ministry of Finance, the Permanent sector, the Ministry of Finance, the Permanent Secretary Ministry of Local Government, and the Secretary Ministry of Local Government, and the Kenya Local Government Reform Programme’s Kenya Local Government Reform Programme’s secretariat, guides LATF operations. secretariat, guides LATF operations.

LATF annual reports and other disbursement LATF annual reports and other disbursement information are disseminated through newspaper information are disseminated through newspaper advertisements. advertisements.

60% of LATF allocations is released based on LAs 60% of LATF allocations is released based on LAs meeting set requirements. meeting set requirements.

Remaining 40% is released based on LAs Remaining 40% is released based on LAs performance measured through LASDAP and other performance measured through LASDAP and other indicators. indicators.

4.4. LATF Cont’dLATF Cont’d

Budgeted LATF allocations are Budgeted LATF allocations are gazetted but no disbursement is gazetted but no disbursement is made unless LAs meet the made unless LAs meet the requirements.requirements.

5.5. HIV/AIDS FundHIV/AIDS Fund (Community Initiative Account)(Community Initiative Account)

Established in 1999 by a Presidential order Established in 1999 by a Presidential order contained in Legal Notice No. 170. contained in Legal Notice No. 170.

Establishment coincided with the declaration of Establishment coincided with the declaration of HIV/AIDS as a national disaster, formation of the HIV/AIDS as a national disaster, formation of the National Aids Control Council (NACC) and the National Aids Control Council (NACC) and the AIDS Control Committees (ACCs). AIDS Control Committees (ACCs).

Fund targets individuals infected with and Fund targets individuals infected with and affected by HIV/AIDS, affected by HIV/AIDS,

Focus: long-term care and support. Focus: long-term care and support. Fund Administration: by NACC—receives Fund Administration: by NACC—receives

budgetary allocations and channels them to Aids budgetary allocations and channels them to Aids Control Units and Constituency ACs before Control Units and Constituency ACs before onward disbursement to NGOs for onward disbursement to NGOs for implementation. implementation.

6.6. Constituency Development FundConstituency Development Fund

Established in 2003 through the CDF Act in The Established in 2003 through the CDF Act in The Kenya Gazette Supplement No. 107 (Act No. 11) of Kenya Gazette Supplement No. 107 (Act No. 11) of 9th January 2004. 9th January 2004.

Aims to control imbalances in regional Aims to control imbalances in regional development brought about by partisan politics. development brought about by partisan politics.

Targets all constituency-level development Targets all constituency-level development projects, particularly those aiming to combat projects, particularly those aiming to combat poverty at the grassroots. poverty at the grassroots.

Comprises annual budgetary allocation equivalent Comprises annual budgetary allocation equivalent to 2.5% of the government's ordinary revenue. to 2.5% of the government's ordinary revenue.

6.6. CDF Cont’dCDF Cont’d Motion seeking to increase allocation to 7.5% of Motion seeking to increase allocation to 7.5% of

government’s revenue was recently passed in government’s revenue was recently passed in parliament but yet to be implemented. parliament but yet to be implemented.

75% of the fund is allocated equally amongst all 210 75% of the fund is allocated equally amongst all 210 constituencies. constituencies.

Balance of 25% –—Allocated as per constituency Balance of 25% –—Allocated as per constituency poverty levels. poverty levels.

A maximum 10% of each constituency’s annual A maximum 10% of each constituency’s annual allocation may be used for education bursary allocation may be used for education bursary scheme. scheme.

Management thr’ 4 committees: 2 at the national Management thr’ 4 committees: 2 at the national level, and 2 at the grassroots level. level, and 2 at the grassroots level.

6.6. CDF Cont’dCDF Cont’d

According to the CDF Act:According to the CDF Act: Expenses for running constituency project offices Expenses for running constituency project offices

should not exceed 3% of annual constituency should not exceed 3% of annual constituency allocations. allocations.

Each constituency is required to keep aside 5% as an Each constituency is required to keep aside 5% as an emergency reserve. emergency reserve.

CDF is not to be used to support political CDF is not to be used to support political bodies/activities or personal award projects. bodies/activities or personal award projects.

A sitting MP is not a signatory to the CDF bank A sitting MP is not a signatory to the CDF bank account but convenes the CDF Committee in her/his account but convenes the CDF Committee in her/his constituency. constituency.

6.6. CDF Cont’dCDF Cont’d The penalty for misappropriation of the Funds is a The penalty for misappropriation of the Funds is a

prison term of up to 5 years, a Kshs 200,000 prison term of up to 5 years, a Kshs 200,000 (approx. US$ 3000) fine or both(approx. US$ 3000) fine or both

CDF project proposals are submitted to MPs who CDF project proposals are submitted to MPs who in turn forward them to the Clerk of the National in turn forward them to the Clerk of the National Assembly. Assembly.

The approved project list is reviewed by the The approved project list is reviewed by the National CDF committee, which presents final National CDF committee, which presents final recommendation to the Finance Minister. recommendation to the Finance Minister.

7.7. Free Primary Education (FPE)Free Primary Education (FPE)

Established in January 2003 through the Established in January 2003 through the government’s National Alliance Rainbow government’s National Alliance Rainbow Coalition (NARC) manifesto. Coalition (NARC) manifesto.

Aims to address financing and quality challenges Aims to address financing and quality challenges in primary schooling. in primary schooling.

Targets all Kenyan children attending formal and Targets all Kenyan children attending formal and non-formal public schools. non-formal public schools.

Emphasis is however, directed towards children Emphasis is however, directed towards children from poor households. from poor households.

Comprises an allocation equivalent to Kshs. 1,020 Comprises an allocation equivalent to Kshs. 1,020 (approx. US$15) per child per annum(approx. US$15) per child per annum

7.7. FPEFPE Amount disbursed to a constituency/district often Amount disbursed to a constituency/district often

based on the number of pupils enrolled in schools based on the number of pupils enrolled in schools within that area. within that area.

First allocation is for the purchase of teaching and First allocation is for the purchase of teaching and learning materials;learning materials;

Second allocation is for general-purpose, Second allocation is for general-purpose, Third is for operations and maintenance. Third is for operations and maintenance. Communities are expected to participate in the Communities are expected to participate in the

management and implementation through school management and implementation through school committees. committees.

Respective head teachers and school committees Respective head teachers and school committees make procurement decisions. make procurement decisions.

III:III: RESULTSRESULTS

A)A) Quality of LifeQuality of Life

More than half the respondents described their quality More than half the respondents described their quality of life as either bad (41.2%) or very bad (10.5%). of life as either bad (41.2%) or very bad (10.5%).

Just less than 36% rated their quality of life as average, Just less than 36% rated their quality of life as average, with 11.7% rating it ‘good’ and less than 1% as ‘very with 11.7% rating it ‘good’ and less than 1% as ‘very good’. good’.

When asked to express their levels of satisfaction, When asked to express their levels of satisfaction, respondents expressed a very high level of respondents expressed a very high level of dissatisfaction dissatisfaction

0.6

17

18.1

54.4

9.8

0 10 20 30 40 50 60

% OF HOUSEHOLDS

Very Satisfied

Satisfied

Neutral

Dissatisfied

Very Disatisfied

SATISFACTION OF HOUSEHOLDS WITH CURRENT QUALITY OF LIFE

Significantly, the vast Significantly, the vast majority of majority of respondents reported respondents reported that their quality of that their quality of life was worse than life was worse than three years agothree years ago

23.8

13.7

62.4

0.1

0

10

20

30

40

50

60

70

% OF HOUSEHOLDS

Better Same Worse Don't Know

HOUSEHOLD RATING OF QUALITY OF LIFE COMPARED TO THREE YEARS AGO

B)B) Levels of Awareness of Levels of Awareness of Decentralised FundsDecentralised Funds

Free primary education (at over 90%) was the only fund Free primary education (at over 90%) was the only fund that recorded consistently high levels of awareness, that recorded consistently high levels of awareness,

Local Authority Transfer Fund recorded the least visible Local Authority Transfer Fund recorded the least visible fund at less than 30%fund at less than 30%

Evidently, some funds enjoy a reasonable profile, while Evidently, some funds enjoy a reasonable profile, while others don’t. others don’t.

This calls for greater publicity & information This calls for greater publicity & information dissemination as awareness and information are critical dissemination as awareness and information are critical for effective public participation. for effective public participation.

C)C) Impact of the FundsImpact of the Funds

There has been a large increase in funds There has been a large increase in funds allocations in the last few years,allocations in the last few years,

Respondents however, gave a generally poor Respondents however, gave a generally poor rating on the impact of the fundsrating on the impact of the funds

Free Primary Education Fund recorded the Free Primary Education Fund recorded the highest rating for impact, with over 90% highest rating for impact, with over 90% reporting a positive impact. reporting a positive impact.

Public perception of the impact of the Rural Public perception of the impact of the Rural Electrification Fund was lowest with only 13% of Electrification Fund was lowest with only 13% of respondents indicating a positive impact. respondents indicating a positive impact.

C)C) Impact of the Funds Cont’dImpact of the Funds Cont’d

Significantly, about 50% of respondents Significantly, about 50% of respondents rated the rated the remaining fundsremaining funds as having no as having no impact at all, with Local Authority Transfer impact at all, with Local Authority Transfer Fund showing the worst results.Fund showing the worst results.

About 35% of respondents rated these About 35% of respondents rated these funds as having had a positive impact, with funds as having had a positive impact, with Local Authority Transfer Fund again Local Authority Transfer Fund again falling below the others at 24%.falling below the others at 24%.

D)D) Participation: Involvement in Participation: Involvement in Funds Management & D/MakingFunds Management & D/Making

Participation is generally very low for the various Participation is generally very low for the various funds, particularly in decision-making processesfunds, particularly in decision-making processes

32.8% of them were involved to the extent of 32.8% of them were involved to the extent of receiving information or listening at receiving information or listening at barazasbarazas

Yet less than 10% attended the meetings to discuss Yet less than 10% attended the meetings to discuss specific issues specific issues

less than 5% felt that they were involved in less than 5% felt that they were involved in decision-making. decision-making.

Over 90% of respondents indicated that Over 90% of respondents indicated that they were not involved in the setting of the they were not involved in the setting of the development agendas for their areasdevelopment agendas for their areas

Outcome underscores the need for Outcome underscores the need for initiatives targeted at increasing public initiatives targeted at increasing public participationparticipation

E)E) Accountability and PerformanceAccountability and Performance Asked to agree or disagree with the statement that Asked to agree or disagree with the statement that

decision for the various funds are taken within the decision for the various funds are taken within the funds mandate (if fund managers are using the funds mandate (if fund managers are using the funds for the purpose intended)funds for the purpose intended)

Awareness regarding whether decisions taken are Awareness regarding whether decisions taken are within the mandates of the respective funds is within the mandates of the respective funds is relatively low for all the funds with most of the relatively low for all the funds with most of the respondents stating that they do not know. respondents stating that they do not know.

This is consistent with the generally low levels of This is consistent with the generally low levels of awareness about the funds. awareness about the funds.

E)E) Accountability and Performance Accountability and Performance Cont’dCont’d

At 53%, free primary education has the highest At 53%, free primary education has the highest number of respondents indicating that they agree number of respondents indicating that they agree with the statement.with the statement.

Significantly, amongst all the other funds only a Significantly, amongst all the other funds only a maximum of 15% of respondents rate maximum of 15% of respondents rate accountability as good. accountability as good.

Save for FPE, more than double the number of Save for FPE, more than double the number of respondents disagrees than agree that the various respondents disagrees than agree that the various funds operate within their mandate, funds operate within their mandate,

This indicates the generally high levels of distrust This indicates the generally high levels of distrust in fund managers, with more than 30% of in fund managers, with more than 30% of respondents indicating a lack of accountability respondents indicating a lack of accountability within management. within management.

F)F) Justifications for Decisions TakenJustifications for Decisions Taken

Except for free primary education, few Except for free primary education, few respondents agree that decisions taken are well respondents agree that decisions taken are well justified. justified.

In fact less than 10% agree that decisions were In fact less than 10% agree that decisions were justified for the Rural Electrification Fund, Local justified for the Rural Electrification Fund, Local Authority Transfer Fund, and the Road Authority Transfer Fund, and the Road Maintenance funds.Maintenance funds.

CDF, HIV/AIDS and the Secondary School CDF, HIV/AIDS and the Secondary School Bursary funds scored only slightly better at Bursary funds scored only slightly better at around 15%. around 15%.

F)F) Justifications for Decisions Taken Justifications for Decisions Taken Cont’dCont’d

There is large dissatisfaction in the There is large dissatisfaction in the probity of decision-making, with CDF probity of decision-making, with CDF drawing the strongest opinions (46% drawing the strongest opinions (46% indicating that fund decisions are not indicating that fund decisions are not sufficiently justified).sufficiently justified).

G)G) Status of Public EducationStatus of Public Education Few respondents are aware of public education on the Few respondents are aware of public education on the

fundsfunds

21.2% stated they are aware of the funds and how to 21.2% stated they are aware of the funds and how to apply for assistanceapply for assistance

Vast majority, 68.2%, are not aware of public education Vast majority, 68.2%, are not aware of public education on decentralised funds nor how to apply for the fundson decentralised funds nor how to apply for the funds

Of those respondents who indicated that there is public Of those respondents who indicated that there is public education, the majority (about 70%) feel that this education, the majority (about 70%) feel that this education is satisfactory indicating a positive finding for education is satisfactory indicating a positive finding for pubic educators pubic educators

IV:IV: Challenges in Implementing Challenges in Implementing Decentralised FundsDecentralised Funds

1.1. GovernanceGovernance

The Acts of Parliament that have created some of The Acts of Parliament that have created some of the funds give immense powers to the local the funds give immense powers to the local Member of Parliament (MP). Member of Parliament (MP).

Corruption cases have been witnessed in the use of Corruption cases have been witnessed in the use of the funds, such as some councilors/MPs the funds, such as some councilors/MPs demanding that beneficiaries make advance demanding that beneficiaries make advance contributions before receiving a fraction of the contributions before receiving a fraction of the benefits due. benefits due.

CDF is seen as the most abused in this aspect, CDF is seen as the most abused in this aspect, followed by the HIV/AIDS and bursary funds, in followed by the HIV/AIDS and bursary funds, in that order. that order.

1.1. Governance Cont’dGovernance Cont’d

Political loyalties have led to unfair Political loyalties have led to unfair sharing of resources across sharing of resources across constituencies/wards. constituencies/wards.

General lack of transparency and General lack of transparency and accountability probably due to the accountability probably due to the blending of supervisory and blending of supervisory and implementing roles.implementing roles.

2.2.  Implementation Implementation Poor awareness by community members and fund Poor awareness by community members and fund

managers of their roles and responsibilities in the managers of their roles and responsibilities in the governance of funds has contributed to poor governance of funds has contributed to poor performance and in some cases a complete failure performance and in some cases a complete failure of the funds. of the funds.

Poor participation, particularly for marginalized Poor participation, particularly for marginalized groups, results in poor prioritization of projects groups, results in poor prioritization of projects and exclusion. and exclusion.

The criteria for allocating secondary education The criteria for allocating secondary education bursary fund, for example has been found to be bursary fund, for example has been found to be unfair to orphans, whose multiple roles undermine unfair to orphans, whose multiple roles undermine their academic performance. their academic performance.

2.2.  Implementation  Implementation Cont’dCont’d

No mechanisms exist to deal with projects such No mechanisms exist to deal with projects such roads, water systems, and schools that may cut roads, water systems, and schools that may cut across constituencies entailing shared benefits. across constituencies entailing shared benefits.

No clear mechanisms exist to avert duplication of No clear mechanisms exist to avert duplication of functions i.e. both CDF and the Ministry of functions i.e. both CDF and the Ministry of Education offer education bursaries. Education offer education bursaries.

There are also reported instances of a single There are also reported instances of a single project claiming support from different funds, project claiming support from different funds, with no checks to prevent ‘double’ accounting. with no checks to prevent ‘double’ accounting.

2.2.  Implementation Con’t Implementation Con’t

Finally, there are challenges to Finally, there are challenges to ensuring that all decentralized ensuring that all decentralized funds reach all the jurisdictional funds reach all the jurisdictional destinations in adequate quantities, destinations in adequate quantities, and that all funds allocated are and that all funds allocated are actually utilized instead of being actually utilized instead of being returned to the source.returned to the source.

3.3.   Monitoring and EvaluationMonitoring and Evaluation There is a lack of professional and technical There is a lack of professional and technical

supervision, which has led to poor project quality. supervision, which has led to poor project quality. There is also low community participation in There is also low community participation in

monitoring and evaluation due to the inadequacy monitoring and evaluation due to the inadequacy of data and general information about the funds. of data and general information about the funds.

There is general misconception by community There is general misconception by community members that funds are ‘free’ or are the personal members that funds are ‘free’ or are the personal gifts from the political leaders. gifts from the political leaders.

Poor monitoring and evaluation has led to abuse Poor monitoring and evaluation has led to abuse of funds and fostered a sense of impunity amongst of funds and fostered a sense of impunity amongst the perpetrators. the perpetrators.

4.4. Effectiveness and EfficiencyEffectiveness and Efficiency

Allocations from the various funds are inadequate. Allocations from the various funds are inadequate.

Tension between fund managers and technocrats Tension between fund managers and technocrats over money management and remuneration has over money management and remuneration has led to delays in the release of funds. led to delays in the release of funds.

Inappropriate professional and/or technical Inappropriate professional and/or technical support, especially from Government ministries, support, especially from Government ministries, has prevented funds from reaching their full has prevented funds from reaching their full potential, potential,

4.4. Effectiveness & Efficiency Effectiveness & Efficiency Cont’dCont’d

Lack of transparency in procurement Lack of transparency in procurement systems has affected the cost-effectiveness of systems has affected the cost-effectiveness of projects.projects. Increased dependency on the Increased dependency on the funds compromises quality due by creating funds compromises quality due by creating excessive demand for services i.e. free excessive demand for services i.e. free primary education created demand for primary education created demand for more teachers, classrooms and other school more teachers, classrooms and other school equipments which have been difficult to equipments which have been difficult to meet.meet.

5.5. ConclusionConclusion Kenya’s seven operational decentralized funds Kenya’s seven operational decentralized funds

face a number of challenges that have prevented face a number of challenges that have prevented them from reaching their full potential in order to them from reaching their full potential in order to reduce poverty and inequalityreduce poverty and inequality

Community awareness and involvement has been Community awareness and involvement has been generally low limiting the scope of implementation generally low limiting the scope of implementation and consequent little impact on the quality of life and consequent little impact on the quality of life of the populationof the population

This is partly due to inadequate allocations. This is partly due to inadequate allocations.

5.5. Conclusion Cont’dConclusion Cont’d Communities have also questioned the various Communities have also questioned the various

processes in identification and implementation of processes in identification and implementation of projects, as well as the monitoring and evaluation projects, as well as the monitoring and evaluation of projects and funds, and have expressed of projects and funds, and have expressed concerns about accountability and transparency.concerns about accountability and transparency.

Answers must be obtained against these questions Answers must be obtained against these questions if the noble objectives of poverty and inequality if the noble objectives of poverty and inequality reduction are to be realizedreduction are to be realized

This calls for education of communities on the role This calls for education of communities on the role of the various funds, procedures for application as of the various funds, procedures for application as well as the use of the allocated funds.well as the use of the allocated funds.

5.5. Conclusion Cont’dConclusion Cont’d There is need to train the fund managers and There is need to train the fund managers and

community organizations/groupings on the community organizations/groupings on the procedures for utilization of the funds. procedures for utilization of the funds.

New regulations and restructuring of the current New regulations and restructuring of the current funds are also necessary to ensure that the funds funds are also necessary to ensure that the funds meet the needs of the targeted beneficiaries. meet the needs of the targeted beneficiaries.

These should comprise better legal and These should comprise better legal and institutional framework for improved institutional framework for improved administration of the funds. administration of the funds.

Finally, there is a need to mitigate barriers Finally, there is a need to mitigate barriers to effective implementation of projects, such to effective implementation of projects, such as the interruptions that may occur with as the interruptions that may occur with changes in government or the changes in government or the ‘privatization’ of funds by certain fund ‘privatization’ of funds by certain fund managers. managers.

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