Asset Management Experiences in Seven Counties: Case Studies

Abstract

Reveals that as one of the highly decentralized countries in Africa, the Kenyan intergovernmental finance framework proves conducive to locally driven development. The major transfer from central to local governments, called the equitable share, delivers a formulae-based share of revenue provided from the central budget, an unconditional block grant providing fiscal flexibility for counties to spend revenues against their highest priorities in both operational and capital budgets at their own discretion. The counties remain under the pressure of inherited situations, however, which limit counties’ abilities to adopt more ambitious development strategies and may constrain pandemic recovery measures. The seven counties studied represent very substantial economic power in Kenya. A diverse group that well represents Kenya’s 47 counties, they exemplify the situation of Kenya’s 47 counties when investigating (1) financing operation and development; (2) development, debt service, and repair and maintenance; (3) workout of inherited financial assets and liabilities; and (4) the first steps to institutionalizing asset management.