Council of Governors Kenya Integration of County Governments in the European Cooperation Programming Process, 2021-2027 Compendium of key references and documents July 2020 Table of Content 1 INTRODUCTION .................................................................................................................. 1 1.1 THE CONTEXT ................................................................................................................. 1 1.2 METHODOLOGY .............................................................................................................. 1 2 COMPENDIUM ................................................................................................................... 2 2.1 THE NATIONAL DEVELOPMENT POLICY AND STRATEGIES – OFFICIAL DOCUMENTS ....................... 2 2.1.1 Kenya Vision 2030 .................................................................................................. 2 2.1.2 Third Medium Term Plan (MTP III): 2018 – 2022 .................................................. 3 2.2 NATIONAL SECTOR PLANS/STRATEGIES ............................................................................... 3 2.3 MILESTONES IN IMPLEMENTATION ...................................................................................... 4 3 NATIONAL DECENTRALIZATION POLICY: DEVOLUTION IN KENYA..................................... 5 3.1 HISTORICAL CONTEXT ....................................................................................................... 5 3.2 LEGISLATIVE FRAMEWORK ................................................................................................. 5 3.2.1 The Constitution of Kenya 2010 (http://kenyalaw.org:8181/exist/kenyalex/actview.xql?actid=Const2010) ..................... 5 3.2.2 Devolution Policy ................................................................................................... 6 3.2.3 Laws to enhance implementation of devolution ................................................... 6 3.2.4 Institutional framework ......................................................................................... 7 3.2.5 Mandate of the counties - Devolved functions (Schedule Four of the Constitution) ...................................................................................................................... 8 3.2.6 County level policies: County Integrated Development Strategies (CIDPs) ........ 10 3.2.7 The National Association - Counties’ Forum: Council of Governors (CoG) ......... 11 3.2.8 Regional Economic Blocs ..................................................................................... 11 3.3 COOPERATION WITH EUROPEAN UNION ............................................................................ 11 KEY REFERENCE DOCUMENTS ................................................................................................. 13 LIST OF POLICIES AND LAWS BY BOTH THE NATIONAL AND COUNTY GOVERNMENTS .......... 15 BOX 1: THE FUNCTIONS AND POWERS OF THE COUNTY GOVERNMENTS- ............................................... 15 3.4 BOX 2: COUNTY POLICIES AND LAWS BASED ON THE FUNCTIONS AND POWERS OF THE COUNTY GOVERNMENTS- ....................................................................................................................... 23 ii List of Abbreviations APRM African Peer Review Mechanism CAADP Comprehensive Africa Agriculture Development Programme CARA Counties Allocation of Revenue Act CoG Council of Governors CRA Commission on Revenue Allocation EC European Commission EU European Union IBEC Inter-governmental Budget and Economic Council MTP Medium Term Plan NDICI Neighborhood Development and International Cooperation Instrument NEPAD New Partnership for Africa’s Development iii 1 Introduction The European Union’s 2013 Communication on Local Authorities underlines the need to involve local authorities in development and implementation of key national development policies. The communication was emphatic that local authorities and/or sub-national units should play an important role in development programming and implementation in partner countries. The Communication, “Empowering local authorities in partner countries’ pointed out that the increased role of sub-national governments would enhance governance and promote sustainable development outcomes. This marked an important shift in development programming. However, many central governments have not marched their recognition of sub-national units with requisite resources and attention. EU now wishes to ensure that this commitment is reflected in future programming processes in partner countries. 1.1 The context The EU Commission has concluded a new financing instrument, the Neighborhood Development and International Cooperation Instrument (NDICI) for the 2021-2027 period. The programming process will involve both the central/national governments and the sub- national units in identification of national development programmes, priorities, and strategies for this six-year period. The integration of sub-national units in the programming process represents an innovative feature in EU’s programming process. This is especially because past initiatives focused on interactions between central governments and the EU delegation in partner countries. Sub- national units were considered non-state actors. However, the 2013 Communication recognizes the sub-national units as actors in their own right. It recognizes that they work as proximity public institutions beside the central government. They work on the principle of subsidiarity based on the key dynamics and interaction between the two levels of public governance. This compendium of key reference documents provides an overview of key official national development policy documents, documents on devolution policy and progress of implementation; and an overview of the European Union’s Cooperation documents on Kenya. All the major reference documents are attached as annexes to this report. 1.2 Methodology Several methods have been used to collect the data on which the analytical report is based. Collecting reference documents involved reviewing national and local level development policies. This assisted in identifying the critical documents for the compendium. At the same time, interviews were held with key informants in National Government ministries and County Government Departments. Notably, the Ministry of Devolution and ASAL; the National Treasury and State Department of Planning; and County Executive Committee Members responsible for finance and planning (over 20 officers attended the meeting), County Secretaries, and select City and Municipality board Chairperson and Managers. The European Union Delegation officers were also interviewed. These interviews served several purposes. One the informants provided information and recommendations on how the County Governments can best walk alongside the National Government to identify priorities for 1 Kenya. Secondly, some of the discussions revealed the type of documents required as references for the assignment. Nonetheless, most of the documents were provided by the Council of Governors (CoG), the Kenya umbrella body of County Governments. 2 Compendium 2.1 The National Development Policy and Strategies – Official Documents 2.1.1 Kenya Vision 2030 Kenya’s development policies are anchored on the national development blueprint, Vision 2030 (Annex I: Vision 2030), and the Constitution promulgated in 2010. The national development blueprint was launched in 2007 and is implemented through five-year development plans, the Mid-Term Plans (MTPs). The MTPs are in turn anchored on the manifesto of the party that forms the government after every five-year period. This coincides with the election period when the party that wins the election is required to form a government. The first MTP covered the period between 2007 – 2012; and the second covered 2013 – 2017. Kenya is currently implementing the third MTP running for the period 2018- 2022. Vision 2030 seeks to transform Kenya into a newly industrialized middle-income country providing high quality of life to all citizens. It comprises three main pillars for this purpose: Economic pillar: maintaining sustainable growth of at least 10% per annum for the next 20 years from 2020 Social pillar: building a just, cohesive society enjoying equitable social development in a clean and secure environment Political pillar: An issue based, people centred, and accountable democratic system Enabling interventions: cross cutting issues including infrastructure, ICT, public sector reforms and macro-economic policies. Vision 2030 was prepared through an inclusive process but paid limited attention to political development. The policies on inclusive politics were not robust enough to integrate recommendations by the first NEPAD’s African Peer Review Mechanism Report for Kenya in 2006. At the end of the first MTP in 2007, economic development had picked up and growth stood at 7.1 per cent. However, a violent post-election followed a disputed election held in December 2007. This slowed growth and resulted in the making of a new Constitution in 2010. The Second APRM report on Kenya acknowledges the progress made in addressing some of the past challenges. It also identifies areas for greater attention in order to provide sustainable solutions to governance and development challenges (see Second Country Peer Review Report of Kenya, 2017). Overall, there have been challenges in meeting this ambitious goal. Economic growth has been about five per cent on average from 2008.