President William Ruto has moved to finalise the process of transferring pending devolved functions to counties in line with the directive he issued during last year’s National and County Governments Coordination Summit.

County governments across have over the years raised concerns over the national government holding onto crucial functions like health, agriculture and rural roads development whose huge budgets go to national level agencies instead of counties as is envisioned by the current Constitution.

Even before yesterday’s National and County Governments Summit at State House, Nairobi, counties had listed the release of devolved functions still being held by national government as top on the summit’s agenda.

Speaking during the 11th summit yesterday, President Ruto directed the Intergovernmental Relations Technical Committee (IGRTC) to take the next step of systematically identifying and transferring the requisite budgetary and other resources tied to these functions in the next financial year.

Soon after the meeting a joint communique signed by Deputy President Kithure Kindiki and Council of Governors Chairperson Ahmed Abdullahi, the two levels of government agreed on 19 resolutions.

Gazette notice

Top on the list was the gazettement of transfer of devolved functions that are still being held by the national government. The gazette notice according to the resolutions was to be executed December 16 (yesterday).

The other key resolution was the National Treasury, to, from December 16 (yesterday), disburse all pending equitable share of revenue allocation for the month of November to all the 47 counties.

The joint communique stated that the corresponding resources related to unbundled functions shall be transferred to the county governments commencing July 2025.

President Ruto said harmonious intergovernmental relations, as outlined in Article 6 of the Constitution, is essential for effective and sustainable devolution and, by extension, the success of the national socioeconomic transformation agenda.

“Our relationship must, therefore, be built on consultation and cooperation, it is in this spirit that I have consistently engaged with county governments and their leadership, both formally and informally, consulting Governors to align our strategic agendas, I remain committed to holding regular engagements through the National and County Government Coordination Summit, which I recognise as a vital platform for advancing our shared priorities,” said Ruto.

Two levels

The President said articles 6, 187, and 189 of the Constitution emphasises consultation, cooperation, and coordination between the two levels of government highlighting ongoing collaborative efforts, such as the national government’s support for county-led initiatives like school feeding and bursary programmes, as well as classroom expansion projects.

Ruto said that similarly, counties have partnered with the national government on fresh produce market infrastructure projects commending the IGRTC for facilitating these partnerships and formalising them through intergovernmental agreements.

Kindiki whose mandate is to chair the committee that brings together the two levels of government said the two shall explore alternative dispute resolution mechanisms as a mechanism to unlock most of the existing intergovernmental disagreements to enhance intergovernmental collaboration between the two levels of government.

“The State Department for Devolution, the Council of Governors and the Intergovernmental Relations Technical Committee shall harmonise the technical proposals on the amendment of the Intergovernmental Relations Act of 2012 to be forwarded to the National Assembly,” said Kindiki.

The Deputy President said that the national government shall in the third quarter of the current financial year, starting January 2025, review budgetary allocation towards the County Aggregation and Industrial Parks by an additional Sh1 billion with the resources disbursed to support counties that are at an advanced stage of development of the industrial parks with a further focus to remaining counties.

Kindiki said that all pending valuation of the defunct local authorities and those related to devolved functions shall be fast tracked and concluded by the IGRTC to facilitate the transfer to the county government by June 30, 2025. 

Ruto acknowledged the concerns raised by governors regarding the disruptions caused by delays in disbursing funds pointing out that intermittent flow of resources, especially conditional grants and development funds has undermined the ability of county governments to effectively support the implementation of strategic national programmes and complementary county projects.

“It is deeply regrettable that our overall development and service delivery outcomes would likely have been much different under a more favourable fiscal environment, due to unavoidable internal and external factors, our recent period has been marked by exceptionally challenging macroeconomic and public financial volatility, compounded by the severe socio-political challenges experienced earlier this year,” said Ruto.

Historic low

The President said that through determined efforts, the economy has been stabilised with inflation reaching a historic low of 2.8 per cent, the currency is strong, and the foreign exchange reserves are robust with conditions now in place to achieve a stronger economic outlook and maintain consistency in the disbursement of allocated revenues.

Ruto said that three significant challenges remain: high public debt, including pending bills, unsustainable public wage bills, and inefficiencies in revenue collection and utilisation and that to address these constraints effectively, unity of purpose and sustained collaboration between national and county governments are essential.

He emphasised that devolution is not just a policy or administrative tool but it embodies the fundamental aspirations of the citizens, which is foundational principle of our nationhood, an essential constitutional value and a transformative pillar of governance saying that devolution is here to stay. 

“Devolution is a critical catalyst in the actualisation of our national values and principles of governance, carrying with it our shared mandate and collective power to guarantee basic rights, empower every citizen, eliminate discrimination, and resolve historical injustices,” said Ruto.

Kindiki told the summit that those opposed to devolution during constitution making process argued that devolution will work against unity of the country but 13 years later it is one of those institutions that have fostered unity in the country.

He said the Constitution anticipated various units will have matters requiring consultation and that whenever issues arise the two levels of government and other players in the devolution sector must consult in good faith and that there meeting is in line to ensure devolution works.

“Our convening here today is a testament of the vibrancy of our constitution and is in line of what is expected of us to ensure devolution works not only to affirm national unity but ensuring that devolution works by ensuring development reaches all parts of the country,” said Kindiki.

Abdullahi said it was important to stand together for some critical issues that may seem unpopular at the moment but in the long run very useful for the development of the country.

He said finalisation of valuation of assets of defunct local authorities and transfer of devolved functions is crucial for the smooth operation of the 47 counties

He said gazettment finalisation of longstanding valuation of assets of defunct local authorities and devolved functions is very crucial for the smooth operation of the 47 counties.

“The conclusion of discussion on County Additional Allocation Mediation process to allow the flow of conditional and non-conditional grants to counties and also the establishment of sector forums for sectors that do not have them which will be a game changer to allow the summit to deliberate on critical matters of national importance,” said Abdullahi.