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AN EVALUATION of PROJECT IMPLEMENTATION in KENYA: a Case Study of County Revenue Fund and Constituency Development Fund

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AN EVALUATION of PROJECT IMPLEMENTATION in KENYA: a Case Study of County Revenue Fund and Constituency Development Fund EKAACCCC S Y PE IIT AR GR O TE F IINT Ethics and Anti-Corruption Commission AN EVALUATION OF PROJECT IMPLEMENTATION IN KENYA: A Case Study of County Revenue Fund and Constituency Development Fund FEBRUARY, 2018 EACC Research Report No. 5 of February 2018 TUKOMESHE UFISADI, TUIJENGE KENYA EACC RESEARCH REPORT NO. 5 OF FEBRUARY 2018 2 Tukomeshe Ufisadi, Tuijenge Kenya AN EVALUATION OF PROJECT IMPLEMENTATION IN KENYA: A Case Study of County Revenue Fund and Constituency Development Fund EKAACCCC S Y PE IIT AR GR O TE F IINT Ethics and Anti-Corruption Commission AN EVALUATION OF PROJECT IMPLEMENTATION IN KENYA FEBRUARY, 2018 EACC Research Report No. 5 of February 2018 Tukomeshe Ufisadi, Tuijenge Kenya i EACC RESEARCH REPORT NO. 5 OF FEBRUARY 2018 TABLE OF CONTENTS ACRONYMS...............................................................................................................................vi FOREWORD .............................................................................................................................vii PREFACE .................................................................................................................................viii EXECUTIVE SUMMARY .........................................................................................................ix CHAPTER 1: INTRODUCTION .............................................................................................. 1 1.1 Problem Statement ................................................................................................................................. 2 1.2 Objectives of the Study ......................................................................................................................... 3 1.3 Justification of the Study ....................................................................................................................... 3 CHAPTER 2: METHODOLOGY ..............................................................................................4 2.1 Research Design ...................................................................................................................................... 4 2.2 Population of the Study and sampling technique.............................................................................. 4 2.2.1 Sample Constituencies .......................................................................................................................... 4 2.2.2 Data collection tools and methods ...................................................................................................... 5 2.3 Data Analysis and Presentation ............................................................................................................ 6 2.4 Scope ........................................................................................................................................................ 6 2.5 Challenges ................................................................................................................................................ 6 CHAPTER 3: LITERATURE REVIEW ....................................................................................7 CHAPTER 4: A COMPARATIVE ANALYSIS OF MANAGEMENT OF DECENTRALIZED FUNDS: The Case of Kenya and Canada ...................................9 4.1 Overview of the Management of Decentralized Funds in Kenya ................................................ 9 4.1.1 Corruption in the devolved funds........................................................................................................ 9 4.1.2 Legal Framework .................................................................................................................................... 9 4.1.3 Institutional Framework for fighting Corruption ..........................................................................11 4.1.4 Operational Framework .....................................................................................................................12 4.2 Overview of the Management of Decentralized Funds in Canada ............................................. 12 4.2.1 Corruption in the decentralized funds ..............................................................................................13 4.2.2 Legal framework in place to fight corruption .................................................................................13 4.2.3 Institutional Framework .....................................................................................................................14 4.2.4 Operational Environment ..................................................................................................................15 ii Tukomeshe Ufisadi, Tuijenge Kenya AN EVALUATION OF PROJECT IMPLEMENTATION IN KENYA: A Case Study of County Revenue Fund and Constituency Development Fund CHAPTER 5: RESULTS AND DISCUSSION ....................................................................... 17 5.1 Descriptive Statistics ............................................................................................................................17 5.1.1 Corruption perception .........................................................................................................................18 5.2 Determinants for Successful Bidding of Public Tenders ............................................................. 18 5.2.1 The data .................................................................................................................................................19 5.2.2 The analysis and discussions ...............................................................................................................21 5.3 Other Issues Affecting CDF and CRF .............................................................................................34 5.3.1 Contract termination ............................................................................................................................34 5.3.2 Criteria of selecting projects ...............................................................................................................35 5.3.3 Conflict of Interest ..............................................................................................................................36 5.3.4 Integrity of contractors .......................................................................................................................37 5.4 An Evaluation of Status of Project Implementation ....................................................................39 5.5 Anti – Corruption Measures ...............................................................................................................52 5.6 Challenges encountered in project implementation ........................................................................54 5.6.1 Corruption and unethical conduct allegations .................................................................................54 5.6.2 Challenges .............................................................................................................................................57 CHAPTER 6: CONCLUSION ................................................................................................. 59 6.1 Policy Recommendations ....................................................................................................................59 6.1.1 Strengthen and enforce the legal framework for corruption ......................................................... 59 6.1.2 Institutionalize prudent fiscal behavior .............................................................................................59 6.1.3 Develop comprehensive cost estimating guidelines for projects .................................................. 59 6.1.4 Increase public officers authority over political authority .............................................................. 60 6.1.5 Undertake thorough due diligence on private companies .............................................................. 60 6.1.6 Open up public procurement .............................................................................................................60 6.1.7 Strengthen monitoring and evaluation of projects .........................................................................61 6.1.8 Prescribe offences for improper record keeping .............................................................................61 6.1.9 Further Research .................................................................................................................................62 Bibliography .............................................................................................................................. 63 Tukomeshe Ufisadi, Tuijenge Kenya iii EACC RESEARCH REPORT NO. 5 OF FEBRUARY 2018 LIST OF TABLES Table 1: Sampled Counties and constituencies .................................................................................................................5 Table 2: Sampled Counties and distribution of number of people interviewed and files perused ....................... 17 Table 3: List of variables used in the analysis ............................................................................................................... 19 Table 4: Factors that affect successful bidding of public tenders in CDF and County governments .................. 21 Table 5: Projects where a company developed specifications and later involved in its tender ............................... 30 Table 6: Identified Public Officers
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