Kenya is spending a lot of funds on infrastructure and applying slow pedals on other sectors, something which will create an imbalance of development in the country’s quest for middle-income economy.
A report from World Bank reveals that the government has channeled most of the funds on roads and other infrastructural developments with the pressure mounting on the government due to devolution, forcing it to spend on irrelevant projects.
The report dubbed Kenya Expenditure Review (PER) seeks to highlight the hits and misses of devolution. It also presents to possible solutions to challenges facing devolution and government expenditure in Kenya.
“The PER is focused on reviewing four key areas; emerging opportunities in both national and county level governments, progress of devolution, government expenditure and how we co-ordinate our resources towards the development agenda,” said World Bank’s Country Director, Diarietou Gayo.
“The fiscal deficit financed through debt is reflected in the range of 3.3% of GDP, and the rising stock of public debt from 37% to 43% of GDP (net of deposit), which about half – 22%-was external debt in 2013/2014,” adds the director.
The report (PER) cites another challenge of limited mobilization of revenue collection, disbursement and use. Out of 47 counties, only ten met the targeted 30% development spending threshold in 2013/2014. They include: Wajir, Turkana, Bomet, Machakos, Murang’a, Homa Bay, West Pokot, Trans Nzoia, Kisii and Nyamira. Other challenges sited in the report include poor disbursement of funds to counties, misappropriation of funds and low literacy levels.
“Devolution is the centre key in the new constitution and we expect challenges. The challenges give us a new phase for development and strategizing on our next move,” noted Chairman of the Commission for Revenue Allocation Mika Cheserem.
[crp]
