The theory of fiscal decentralization in Kenya

A critical analysis of the constitutional framework

Term Paper , 2019 , 22 Pages

Law - Public Law / Constitutional Law / Basic Rights

This work critically analyses this theory of fiscal decentralization and rationalizes how the constitution is prepared to mitigate any demerits of decentralization. It discusses the pillars of fiscal decentralization including political autonomy, financial autonomy (revenue assignment), expenditure responsibility, intergovernmental fiscal transfers, and sub-national borrowing. It also discusses the application of these pillars in Kenya and how the constitution mitigates the demerits of fiscal decentralization.

This paper discusses the theory of fiscal decentralisation under the Kenyan devolved system of government and rationalises how the Constitution of Kenya, 2010, mitigates the demerits of decentralisation for the realisation of the objects of devolution in Kenya. Part II gives a description of the pillars of the theory of fiscal decentralisation. Part III discusses the application of the pillars of fiscal decentralisation under the Kenyan devolved system of government and rationalises how the 2010 Constitution mitigates the demerits of decentralisation. A comparative analysis of the Republic of South Africa(RSA) is adopted throughout this study. The RSA provides instructive lessons for Kenya for the proper implementation and sustainability of an effective fiscal decentralisation system in Kenya. The last part of this study gives some concluding remarks.

TABLE OF CONTENTS

1. Introduction

2. Pillars of fiscal decentralisation
2.1 Political autonomy
2.2 Expenditure responsibility
2.3 Revenue assignment
2.4 Intergovernmental fiscal transfers
2.5 Sub-national borrowing

3. Application of the pillars of fiscal decentralisation in Kenya and how the 2010 Constitution mitigates demerits of decentralisation
3.1 Application of political autonomy under the 2010 Constitution
3.2 Application of expenditure responsibility under the 2010 Constitution
3.3 Application of revenue assignment under the 2010 Constitution
3.3.1 Taxation powers
3.3.2 Budgetary autonomy
3.3.3 Transparency and accountability
3.3.4 Hard budget constraint
3.4 Application of intergovernmental fiscal transfer under the 2010 Constitution
3.5 Application of sub-national borrowing under the 2010 Constitution

4. Concluding remarks

REFERENCES

• Author: Leonard Mwakuni (Author)
• Publication Year: 2019
• Pages: 22
• Catalog Number: V593933
• ISBN (eBook): 9783346216168
• ISBN (Book): 9783346216175
• Language: English
• Tags: Devolution, Fiscal decentralisation, Political autonomy, Financial autonomy, Expenditure responsibility, Intergovernmental fiscal transfers, Revenue assignment, Sub-national borrowing, Budgetary autonomy, Hard budget constraint