U P C O M I N G E V E N T S The Council-Sec Monthly  KYISA games Kwale County- VOLUME 1, ISSUE 1 NOVEMBER 2015 29th November to 6th December Word From The Ag. CEO 2015  NOREB invest- Dear Colleagues, ment conference Welcome to the first issue of The Council at Eldoret Sports E-newsletter. Club in Uasin The promulgation of the Constitution of Gishu County 2010 marked a major milestone in (19th-20th Nov) the way the country is governed. It created  KEPSA –CEC Mrs Jacqueline Mogeni training Kwale a three year transition period within which County 26th-28th it was expected that the functions that were assigned to November 2015 County Governments by the constitution should already have transferred in totality. It stipulated the dispersal of po- litical power and economic resources from the Centre through devolution.

INSIDE THIS ISSUE: Impeachment of 2 Muranga Gover- nor

Delayed transfer 3 of Functions The Third Annual Devolution Conference Borrowing level 5 of the National theme is “The Promise Of Devolu- The Council of Governors in County and National Govern- Government tion: Consolidating The Gains After ments, representatives from collaboration with other stake- Transition And Looking Into The holders has organized annual academic, policy, public, pri- Decentralization 7 Future” is scheduled to be vate, media and civil society devolution conferences every held in Meru County in April year since the country adopted a sectors with the opportunity Intercounty Col- 8 2016. The Annual devolution to celebrate milestones, reflect laborations Re- devolved system of government. conferences are now seen as on challenges, constructively gional coopera- The First Annual Devolution one of the most important critique, network, discuss tions and eco- Conference was held in Kwale events in the devolution calendar nomic blocs emerging opportunities and County in April 2014, the Sec- in Kenya. They provide key ond Annual Devolution Confer- showcase cutting edge innova- stakeholders especially repre- tions from the entire country ence was held in Kisumu in April sentatives from governments and the region. 2015 and the Third Annual De- who include volution Conference whose technocrats from across the VOLUME 1, ISSUE 1 P A G E 2 Murang’a County Governor Impeachment Rejected

By Elizabeth the Council, H.E said that the County Assembly acted in Wambui total breach of the Constitution and the County Governments Act stat- ing the impeachment as null and the final report. void. Several County Assemblies, in- cluding West Pokot, Makueni, Murang’a County Governor The Chairman believes that the alle- Embu and Kericho have in the H.E was im- past attempted to impeach their st gations against H.E. Mwangi wa Iria peached on 21 October is a result of the usual challenges Governors but their moves have after members of the Coun- that Governors are experiencing in been unsuccessful. ty Assembly voted for his their Counties, particularly delayed removal. 34 MCAs were in disbursement of funds, moreover, On Friday 6th November 2015 support of the motion while he stated that these are not the Senate wrote an unforgetta- 15 MCAs opposed the mo- grounds for impeachment of an ble chapter in the narrative of tion. The MCAs accused the elected Governor at all. devolution. The Senate rejected county boss of misusing cash H.E Peter Munya continued to say the reasons advanced by the and failing to manage the that the citing of the Auditor- Murang'a County Assembly for county’s debt. General’s report can only be con- his removal from office. cluded to be in bad faith since all This move sparked a lot of Counties responded to respective H.E Governor Mwangi wa Iria concern from Governors. audit queries and still hold that the continues serving the people of Speaking at a press briefing office of the Auditor General is ac- Murang’a County. in Naivasha after a Council countable for failure to include all meeting, the Chairman of responses before dissemination of

The Stronghold of Kenya’s Social- Economic

Development and the new frontier For Investment By Anne Mukii

create employment, generate income, reduce poverty and frontier for investments like enhance sustainable economic extractive industry, agriculture, development. real estate, tourism, ICT, edu- Tharaka Nithi enjoys a stable cation and Finance among oth- political environment that ers. The county boasts of all- Tharaka Nithi County is guarantees security which in weather roads all over the planning to host its inaugural turn attracts investment both county. This means efficient international investor con- internal and external. Tharaka th th delivery of farm produce and ference on 26 -30 Novem- Nithi has put her people at reduced travel time to other ber 2015. Through the Inter- the center of development. counties. The licensing policies national Investment and There is a commitment that are also investor friendly. The Consumer fair, the county is development processes need culture connects the commu- seeking investment value, to benefit the people. The nity and development. county economy is a new VOLUME 1, ISSUE 1 VOLUME 1, ISSUE 1

Delayed Transfer Of Functions To The County Govern- ments By Rosemary Njaramba

Section 15 of the Sixth entertainment and public effectively implemented. Un- Schedule to the Constitution amenities including-libraries. less the Transition Authority provides that ‘Parliament shall, gazettes for the transfer of a by legislation, make provision for function, a County Govern- the phased transfer, over a period ment cannot proceed to per- of not more than three years from form that function. Subse- the date of the first election of quently, any form of service county assemblies, from the Na- delivery and revenue collec- tional Government to County tion attendant to the pending governments of the functions These functions have not yet functions becomes impeded. assigned to them..’. The been transferred and they are Second, we must remember Transition Authority, in contained in a draft Gazette that our governance system is exercising its mandate under Notice that is yet to be founded upon the ‘funds follow the Transition to Devolved published by the Attorney- functions’ principle. As the Government Act, 2012 and in General’s Office. The Council ground is laid for the transfer seeking to comply with this notes that the timeline that had of the pending functions, so constitutional provision, has been allocated for the com- must the resources be availed since transferred to County plete transfer of all functions for the performance of those Governments functions assigned to County Govern- functions. On the same enshrined in the Fourth ments lapses in March 2016. breadth, it is worth highlight- Schedule of the Constitution The limited transfer of func- ing that there still exists State vide two legal notices- Legal tions to County Governments Corporations and Regional Notice No. 16 of February will inevitably culminate into a Development Authorities 2013 and Legal Notice No. 137 constitutional crisis if not rem- (RDAs) that continue to per- th -183 of 9 August, 2013. edied within the mentioned form County Government However, there are still a timeframe. At the moment, the functions. In every financial number of functions that are inordinate delays occasioned year, these state institu- yet to be vested in the by the various National Gov- tions and agencies contin- authority of County ernment institutions in the ue to benefit from colos- Governments. These are: transfer of the remaining sal budgetary allocations County roads; County planning County functions have com- which ideally should form and development, including— promised implementation of part of the County share of Electricity and gas reticulation the same. First, functions must revenue. and energy regulation; and be properly transferred Cultural activities, public through the recognized legal framework if they are to be

THE COUNCIL - S E C M O N T HLY VOLUME 1, ISSUE 1 P A G E 4

to be utilized for projects related Agencies which perform func- To illustrate: in the 2015/16 to devolved functions. The uncon- tions that have been devolved. budget, ongoing road construc- stitutionality of the status quo These consultations are long tion and maintenance has been cannot be downplayed. It was an- overdue. allocated KES 85.2 billion. ticipated that by the lapse of the These monies will fund state transfer period, state corpora- In conclusion, County Govern- actors like the Kenya Urban tions and regional development ments have to take over all their Roads Authority (KURA) and authorities would have been re- functions as soon as possible. the Kenya Rural Roads Author- structured to conform to the de- Urgent transfer of pending func- ity (KeRRA) who continue to volved system, or phased out tions must be facilitated to allow award contracts for County where their mandate would be for service delivery to the resi- Roads- a County Government proved redundant. Despite this, dents of Counties. Further, all function. The same budget has and as mentioned earlier, state relevant stakeholders- the Minis- allocated a sum of KES 79.7 corporations and regional devel- try of Devolution and Planning, billion for agriculture, specifi- opment authorities have contin- the Commission for Revenue cally irrigation projects, fisher- ued to engage in long-term finan- Allocation, the Transition Au- ies and livestock, yet under the cial commitments, in complete thority and ourselves, must de- Fourth Schedule of the Consti- disregard of the underlying uncon- velop a roadmap for the phasing tution Agriculture is a fully de- stitutionality. Further, the duplica- out of state corporations and volved function and the Na- tion of roles and eventual wastage regional development authorities tional Government’s mandate of public funds cannot be ig- that continue to undertake extends only to agricultural nored. National Government County functions. This will un- policy. Regional Development agencies cannot continue to lock more financial resources and Authorities like the Tana & perform County functions. The County Governments will be able Athi River Development Au- Report of The Presidential Taskforce to enhance their provision of es- thority (TARDA), Kerio Valley on Parastatal Reforms recommend- sential services like health, water, Development Authority, Lake ed for discussions to take place sanitation and early childhood Basin Development Basin and between the National Govern- education. others, also continue to re- ment and County Governments ceive a share of the national regarding the future of the State budget only for these monies VOLUME 1, ISSUE 1 P A G E 5

Borrowing Level Of The National Government By Victor Odanga The Central Bank of value to the economy and rowing funds for already Kenya has pegged the regenerate income that can devolved county functions. Country’s debt level at be able to repay the loan. Such loans from the multi- Ksh 2.8 trillion which is The East Africa Monetary lateral agencies such as half of what the country Union pegs the debt ceiling World Bank, African devel- is able to produce mean- at 50% of a country’s own opment Bank and Interna- ing that the Country’s GDP, by Kenya surpassing tional Development Associ- Gross Domestic Product this not only means that we ation must be stopped. (GDP) is about Ksh 5.7 are dangerously within the 2. The large infrastructure trillion. This amount of red flag but we risk joining projects that are expected borrowing is alarming con- countries that have previ- to bring returns to the sidering the fact that at ously been marked as High- country are not been un- June 2013 the debt level of ly Poor and Indebted dertaken yet monies have the country was at 41% of Countries (HPIC) leading been borrowed by the na- the Gross Domestic Prod- loan defaulting and refi- tional government from uct. nancing processes. Bilateral Countries such as The reality is that Kenya’s The National Government China, Japan and Canada. debt level is sustainable; has been borrowing money The National government meaning that the country both domestically and in- should seek to undertake can service its debt and still ternationally for cash flow one long-term infrastruc- offer quality basic services maintenance and infrastruc- ture project at a time and to its citizens without ture projects that are not not commit the country to straining current and future picking up or are being mis- huge debts that might lead generations. The fact that appropriated hence not to unsustainable levels. in the span of two financial leading to any value addi- 3. The National Government years, the country’s debt tion on the economy. The should reduce its domestic level has increased by 10% debt strategy paper for the borrowing as it scrambling and to have such a debt National Government re- for the available local re- level, bearing in mind the leased a few weeks ago sources with the private fact that County Govern- highlighted the need to re- sector which will reduce ments are yet to borrow is duce the domestic borrow- the amount available for worrying considering that ing levels which had almost borrowing by the private we just ushered in a new reached 25% of the GDP. sector leading to slow system of governance. The This borrowing is danger- growth of the economy as fiscal responsibility princi- ous as it involves high in- private sector plays a huge ples as identified in the terest rates provided for by role in the growth of the Public Finance Management commercial banks and any economy. Act provides that both the default leads to even higher 4. The country should only counties’ and national debt interest rates. borrow externally through shall be maintained at a The following aspects could concessional channels sustainable level and the be relooked into to reduce which allows for sufficient fiscal risks shall be managed the high debt levels in the maturity rate of the loan. prudently, meaning that Country:- money borrowed must add 1. The National Govern- ment must stop bor- VOLUME 1, ISSUE 1 P A G E 6

5. County Governments Government and County genuine in its national man- should be allowed to Governments to provide for date of ensuring our debt borrow individually as internal reserves systems. management is sustainable. It has been provided for is borrowing on what it does in the constitution not require. through national gov- The Constitution under Arti- ernment’s guarantee. cle 206 provides that all 6. Both the two levels of monies raised or received by government must de- or on behalf of the National velop budgets with Government shall be paid

minimal deficits allow- into the Consolidated Ac- ing for minimal bor- count unless excluded from rowing to finance the the Fund by an Act of Parlia- gaps. It is imperative for both lev- ment. 7. Both the two levels of els of government to estab- Kenya through the National government must im- lish an enabling environment Treasury raised a Euro Bond. prove their fiscal effort for the private sector and Available information indi- to enable less borrow- the small and medium enter- cates that net proceeds from ing and more internal prises to enable their contri- the Sovereign Bond of USD resources. bution to the growth of the 1,999,052,872.97 out of the Otherwise if the national economy. total amount of USD government continues to As the Council of Gover- 2,000,000,000.00 were re- borrow without enabling nors, we are raising these ceived on 24 June 2014 and corresponding growth in the issues because we are wor- deposited into an offshore economy, the country risks ried at the level of how our account, contrary to Article losing in the long run and economy will eventually turn 206 of the Constitution of specifically counties as they out. It is noted that just over Kenya and Section 17(2) of will not be able to borrow 8 months from November Public Finance and Manage- for their own internal use. It 2014- June 2015, the Na- ment Act, 2012 which re- is however to be noted that tional Government has got- quires that all money raised no country can sustain itself ten into 14 loan agreements or received by or on behalf with only internal revenue mainly touching on County of the National Government collected if it has no re- Governments’ functions. be paid into the Consolidat- serves. It is therefore advisa- This illustrates how the Na- ed Fund. ble for both the National tional Government is not

THE COUNCIL - S E C M O N T HLY P A G E 7 VOLUME 1, ISSUE Decentralization Is A Work In Progress By Yvonne Ogwang

For a period of 50 years, meant that Kenya would currently, gender issues are Kenya had a centralized sys- then have a devolved system being addressed. Devolution tem of Governance. This of Government where there has allowed for a third rule meant that important deci- would be equitable distribu- to be applied hence proper sions about Kenya had to tion of resources, Political representation of both gen- come from the Central power would have to be der in any kind of set up. Government. It is also dur- devolved to the counties The public participation in ing this period of time that and various functions would issues that relate to develop- Kenya faced misuse of pow- also be devolved. This also ment, the civic education er, bad governance, and meant that Kenya would be that has had to be put in serious human rights viola- divided in counties and not place so that at least every tions due to the autocratic provinces as it was earlier Kenyan knows their civic presidency that Kenya had. during the centralized sys- rights and can hold the Gov- During the centralized sys- tem of government. Hence, ernment accountable when- tem of Government, Ken- these counties would oper- ever they breach their rights. yans from the different tribal ate like any other functional Generally, the awesome lines were marginalized due government to ensure that development has been ex- to skewed distribution of its people would benefit perienced in the counties resources and political pow- politically, economically and since devolution started. er hence rendering some socially. Devolution may take time parts of the country to pov- It has been 2 years since before we experience its erty and disempowerment devolution started and I benefits, but just like a child which made it hard for these would confidently say that who needs nurturing, it is Kenyans to ever imagine devolution is work but it our due responsibility as that their destiny could ever works. Two years down the Kenyans, as leaders and as be different than that which line we can see the changes voters to ensure that we their very own state had in our health centers, our nurture devolution and en- sentenced them to. roads and infrastructure, the sure that it succeeds. We Then came the promulga- agricultural sector, water can only do that through tion of the Constitution and and sanitation even access to proper governance, ac- Kenyans had the chance to our political leaders and in countability and patience. change and decide the fate this case the Governors.

of their country, was it going The youth have also been to be ‘YES’ or ‘NO’ . Ken- given amazing opportunities yans voted ‘YES’, which to better themselves, and

THE COUNCIL - S E C M O N T HLY VOLUME 1, ISSUE 1 P A G E 8

Inter County Collaboration-Regional Cooperation And Economic Blocs By Samuel Mutisya

In research; critics of decen- by the fact that no county can tegic intervention areas, tralization argue that of all survive exclusively and inde- namely Agriculture, Tourism, three aspects; de-concentration, pendently of other counties Education, Health, ICT, Finan- delegation and devolution; it is thus requiring the establish- cial Services and Infrastruc- the devolution of political, fiscal ment of a mutually benefiting ture. The bloc has already put and administrative responsibil- relationship. “While counties in place a blue print to guide ities and powers from the are emerging as key units of actualization of this vision. The central government to inter- economic development, they blueprint was developed mediate and local govern- stood to gain greatly by pool- through a consultative process ments that is the true meas- ing individual resources for by the county governments as ure of decentralization of pub- strategic initiatives,” former well as members of the public lic service delivery. Council of Governors Chair- and coordinated by Deloitte man H.E. said dur- Devolution, altered the ex- East Africa. It also drew from ing the launch of the Lake individual counties’ integrated pectations of the Kenyan pop- Region Economic Basin blue ulation because of the ever development plans. For each print by President Uhuru of the intervention areas, the increasing demands and transi- Kenyatta after officially open- ent nature of response to citi- blueprint has designated a flag- ing the Second Annual Devo- ship project to be implement- zen needs that were previous- lution conference in Tom ly unachievable under the ed in the region which include Mboya Labour College, Kisu- an agricultural commodities centralized system of govern- mu on 21st April 2015. ment. However, Kenya’s de- exchange, a regional bank, The following are the upcom- specialist hospitals and educa- volution did not envision ing economic blocs currently County Governments work- tional centers of excellence in in place. each county, creating a Lake ing in isolation akin to a feder- 1. Lake Region Econom- al system but rather inter de- region ring road and tourism ic Basin circuit. According to Kisumu’s pendence and inter county The bloc is made up of collaboration. Counties have Governor H.E. , Bungoma, Busia, Homa Bay, the blueprint will enable indi- been working hand in hand on Kakamega, Kisii, Kisumu, regional blocs to leverage on vidual counties that are some- Migori, Nyamira, Siaya,Vihiga, times too small to leverage economies of scale. The focus Bomet, Trans Nzoia and Keri- is on delivering on the 14 economies of scale, to jointly cho with a total population of implement massive projects. functions based on the collec- 12,074,498. The Lake Region tive strength of the counties “Many counties are grappling bloc is expected to act as a with insufficient resources for lying within similar economic one-stop shop for investors zones. The need to establish meeting competing needs in seeking opportunities in the economic blocks is motivated region. It identifies seven stra-

VOLUME 1, ISSUE 1 P A G E 9

the county. This is the reason we in through the new economic bloc hold joint trade missions that the Lake Basin came together to which comprises Uasin-Gishu, would culminate in a joint in- join forces and pull together,” H.E. Baringo, Trans Nzoia, Nandi, vestment conference in No- Ranguma added. West Pokot, Turkana, Samburu vember. The counties are planning to set and Elgeyo-Marakwet counties. The trading bloc would seek up a secretariat to coordinate its “We intend to come up with in- markets for agriculture pro- implementation. ter-county tariffs, which will also duce. “Production is not an 2. Jumuiya ya kaunti za Pwani be harmonised to make it easier issue but marketing is. The Jumuiya Za Kaunti za Pwani is an to do business,” said Uasin-Gishu only way to improve our initiative that will see the six Coun- County Governor H.E. Jackson economy is to expand the ties of the Coastal region unite and Mandago. markets and utilize advantages work with a group of professionals “We want to take advantage of such as Eldoret International to foster social, economic and po- the region’s huge potential espe- Airport, where cargo planes litical development in the Region. In cially in tourism. This will also pro- come in full but leave empty,” the Coast region the counties are: mote trade between the citizens said Dr Lagat. Lamu, Kilifi, Kwale, Mombasa, Tana of Uganda and Kenya,” said the River and Taita Taveta Counties governor. 4. The Mt Kenya, part of have already formed an economic The governors from the North Rift Valley and Aberdare union. Rift also seek to find a lasting solu- counties trade bloc The total population is 2,675,376 tion to cattle rustling, especially in The focus is on county gov- The collaboration is aimed at solv- Baringo and Turkana counties. ernments now to offer their ing various challenges facing the The menace has undermined de- local entrepreneurs wider region including resuscitating tour- velopment in the region. markets for the products ism, education and taking advantage Baringo County Governor H.E. made in the counties. of the maritime component. said although The counties are Nyeri, The bloc has already put in place a security is a national function, the Murang’a, Kiambu, Nyanda- website: http://jumuiayapwani.org/ . trading bloc would have a bigger rua, Kirinyaga, Embu, Meru, The bloc has already signed MOUs say on the matter. Tharaka Nithi and Laikipia. with the academic institutions: “This is a noble idea (North Rift Under the trade arrangement, Pwani University, Technical Univer- unity) because the bigger you are, the regional governments will sity of Mombasa, Taita Taveta Uni- the more bargaining power you encourage trade between the versity and Umma University to have on issues such as security,” member counties by coming help the take charge in research Mr Cheboi said. up with relevant policies and and innovation towards tackling Uasin Gishu County Govern- regulations. socio economic challenges. ment is working with the Kenya The Council of Governors 3. North Rift Region Econom- Airports Authority and Moi Uni- has already signed a Memo- ic Bloc versity to expand the Eldoret air- randum of Understanding In the North Rift region, eight port to promote domestic flights with Kenya National Cham- counties formed an economic bloc which will open up all the eight ber of Commerce and Indus- recently, banking on a common counties in the region. The coun- try (KNCCI). market targeting a population of ties are seeking to rebrand the about 4,983,496. region, harmonize policies and The plan will be implemented inter-county tariffs and |

OUR VALUES Our core values reflects what is truly important to us as the COUNCIL Council. These values are O F  Professional GOVERNORS  Independence  Equality and Equity  Cooperation

Delta Corner, Westlands 2nd Floor, Waiyaki Way OUR VISION TEL; (020) 2403314,2403313 +254729777281 To have prosperous and Democratic Email:I [email protected] Counties Delivering services to every Kenyan P.O. BOX 40401-00100 NAIROBI

Contact Us

Give us a call for more information about the information pub- lished, services and products

[email protected] EDITORIAL TEAM

Jacqueline Mogeni Editor in Chief ; Judy Oduma Design Editor; Nkatha Koronya Rosemary Njaramba

ISSUE CONRIBUTORS Elizabeth Wambui Anne Mukii Rosemary Njaramba Victor Odanga Yvonne Ogwang

Copyright © 2015 Council of Governors

All Rights Reserved.