International Development Planning Review

Central–local transfers in Kenya: Options for incremental reform

International Development Planning Review (2004), 26, (1), 47–60.

Abstract

Until 2000, Kenya was unique in having no formal means for sharing central government revenues with local authorities. Urban and rural governments alike had to cover their capital and current expenses on roads, education, public health, and so on, entirely from own resources. This paper discusses the constructive role transfers can and should play in Kenyan development and the tradeoffs they impose between resource benefits and behavioural incentives. It then recommends several specific proposals for transfer reform, particularly regarding local road maintenance and basic equalisation, along with the implementation mechanisms needed to address associated legal, institutional, and administrative issues. In addition, an action plan for a limited grant programme is proposed for the short term.

Access Token
£25.00
If you have private access to this content, please log in with your username and password here

BAHL, R. W. and LINN, J. F. (1992), Urban Public Finances in Developing Countries, New York, Oxford University Press. Urban Public Finances in Developing Countries Google Scholar

CRANE, R. (1997), 'Central–local transfers in Kenya: options for reform' in Kenyan Local Government Reform Programme, Final Report, Cambridge, MA, Harvard Institute for International Development. Google Scholar

DEVAS, N. (1997), 'Local authority revenue sources: an analysis of the present system and strategies for reform' in Kenyan Local Government Reform Programme, Final Report, Cambridge, MA, Harvard Institute for International Development. Google Scholar

 Google Scholar

 Google Scholar

REPUBLIC OF KENYA (1993), Kenya Gazette Supplement No. 86 (Acts No. 7), Nairobi, Government Printer. Google Scholar

REPUBLIC OF KENYA (1994), Kenya Gazette Supplement No. 18 (Bills No. 3), Nairobi, Government Printer. Google Scholar

REPUBLIC OF KENYA (1995), Statistical Abstract 1995, Central Bureau of Statistics, Nairobi: Government Printer. Google Scholar

REPUBLIC OF KENYA (1996a), 1996/97 Estimates of Revenue of the Government of Kenya for the Year Ending 30th June, 199y, Nairobi, Government Printer. Google Scholar

REPUBLIC OF KENYA (1996b), Economic Survey 1996, Central Bureau of Statistics, Nairobi, Government Printer. Google Scholar

REPUBLIC OF KENYA (2001), Local Authority Transfer Fund: First Annual Report, Nairobi, Ministry of Local Government. Google Scholar

REPUBLIC OF KENYA (2002), Local Authority Transfer Fund: Second Annual Report, Nairobi, Ministry of Local Government. Google Scholar

SMOKE, P. (1993), Local Government Finance in Developing Countries: A Case Study of Kenya, Nairobi, Oxford University Press. Local Government Finance in Developing Countries: A Case Study of Kenya Google Scholar

WORLD BANK (2002), An Assessment of Local Service Delivery and Local Governments in Kenya, Nairobi, World Bank. Google Scholar

If you have private access to this content, please log in with your username and password here

Details

Author details

Crane, Randall