Reform: Do county governments have enough incentive for fiscal discipline?
Nairobi, June 9 -- Kenya's devolution framework has significantly expanded access to fiscal resources and decision-making at the local level. County governments now receive substantial allocations, with the equitable share rising to Sh420 billion in FY 2026/27, representing 21.9 percent of sharable revenue, well above the constitutional minimum of 15 percent according to the Budget Policy Statement 2026.
While this reflects sustained national commitment to devolution, outcomes have lagged behind expectations. The challenge is no longer a lack of policy frameworks-it is the persistent failure to enforce them.
Over recent budget cycles, successive policy statements have outlined a consistent reform agenda: strengthening own-source revenue...
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