- Category: News and Highlights
The Kenya Institute for Public Policy Research and Analysis (KIPPRA) recently released its annual economic report, the Kenya Economic Report (KER) 2016. The report reviews Kenya’s recent economic performance and provides an outlook for the medium term. The focus of this year’s report is ‘Fiscal Decentralization in Support of Devolution’. This is highly relevant and timely within the context of our current development challenges and potential opportunities and gains associated with devolution.
Over the last three years, various achievements have been made in terms of establishing the necessary legal, regulatory and administrative units to support devolution. The relevant functions have also been devolved and resource allocation to County governments exceeds the constitutional minimum of 15 per cent. Overall, county resource allocation as a percentage of total revenue increased from 19.94 per cent in 2013/14 to 24.18 per cent in 2014/15.
County expenditure as a percentage of Gross Domestic Product (GDP) and total government outlays are estimated at 5.6 per cent and 18.9 per cent, respectively. The county governments are raising own resources to supplement the allocation from the national government. Overall, this is estimated at about 11 per cent of total county revenue. However, there are inter-county variations, with most counties over-relying on the equitable share transfers. Based on the 2014/15 fiscal data, only about 70 per cent of the counties raised less than ten (10) per cent of their total revenue locally.
The report is organized in four parts. Part I analyses Kenya’s recent macroeconomic performance, governance and social-economic performance while part II discusses key underlying policy issues in agriculture, extractives sector, tourism, manufacturing, micro and small enterprises, trade, financial services, building and construction, and information and communication technology. Part III explores the medium term prospects under different assumptions and part IV focuses on decentralization.
The KER 2016 was prepared by KIPPRA staff under the overall supervision of the Executive Director. The report was prepared in consultation with the KIPPRA Board of Directors, Central Bank of Kenya, National Treasury, Ministry of Devolution and Planning, Kenya National Bureau of Statistics, the National Economic and Social Council Secretariat, among other stakeholders.
Click HERE to access Kenya Economic Report 2016 or download from the ‘Latest News’ section of the KIPPRA website.