Kenya’s greylisting by the Financial Action Task Force (FATF) due to weaknesses in combating money laundering and terrorist financing underscores the severity of corruption and its impact on economic growth. This has exacerbated challenges facing devolution, particularly the rampant trend of budgeted corruption. Funds meant for essential services are lost through inflated contracts, ghost projects, and outright theft, leaving roads impassable, hospitals without medicines, and schools underfunded.
Beyond corruption, the failure to transfer devolved functions and allocate necessary funds has further weakened devolution. Despite President William Ruto’s commitments in 2022 and 2023, key functions remain under national government control, limiting counties’ ability to serve citizens effectively. The government must complete this transfer within 30 days and ensure full funding for counties.
Additionally, county governments should focus on their core mandates rather than spending on national government functions. Members of County Assemblies (MCAs) must be removed from project implementation, and unconstitutional funds like the Ward Development Fund abolished. The national government must also cease duplicating devolved functions, such as rural roads and primary healthcare, to enhance efficiency and governance.
The National Treasury must ensure the timely disbursement of county revenue as mandated by the Public Finance Management Act. Delays disrupt service delivery and hinder counties from fulfilling their mandates. Equally, the National Assembly must expedite the approval of the most recent audited accounts to maintain accurate financial allocations.
Combating Corruption and Strengthening Oversight
Addressing corruption requires decisive action. Governments must:
- Ensure timely publication of budget implementation reports, as required by law.
- Enforce strict penalties for financial mismanagement.
- Expedite prosecution of corruption cases without political bias.
- Implement Auditor General’s recommendations for accountability.
Selective investigations have undermined public confidence in anti-corruption agencies. To restore trust, the Ethics and Anti-Corruption Commission (EACC) should be granted prosecutorial powers, and collaboration with the Kenya National Audit Office (KENAO) and civil society organizations should be strengthened.
Public officers must adhere to Chapter Six of the Constitution. Those who fail integrity standards should be removed from office and investigated. Key oversight institutions, including the Judiciary and the Office of the Auditor General, must be adequately funded to ensure accountability.
Kenya must also enhance transparency in debt management by publishing the National Debt Register. Public participation should be strengthened through national policies on civic engagement. Moreover, unconstitutional funds like the NG-CDF and NGAAF must be abolished, with resources redirected to counties to support devolution.
Kenya urgently needs reforms to uphold transparency, equity, and responsible leadership.
