On 19^th to 27^th April 2022, KEPSA participated in a consultative meeting to develop the Devolution Sector Plan 2023-2027 held at Waterbuck hotel, Nakuru. The meeting involved key stakeholders such as the Ministry of Devolution (MOD), Commission on Revenue Allocation (CRA), Council of Governors (COG), Intergovernmental Relations and Technical Committee (IGRTC) and the Controller of Budget (COB), among others.

The forum sought to develop the first draft of the Sector Plan that will eventually be subjected to Public Participation  and thereafter inform the design and architecture of MTP IV 2023-2027.The newly drafted Devolution Sector Plan builds upon the success of devolution achieved in the Second and Third Medium Term Plans which included i) establishment of County Governments and County Assemblies; ii) establishment of Ministries, Departments, Agencies and Independent Commissions of the National Government supporting devolution; iii) clarification of mandates, functions, powers and interdependence of the two levels of government; iv) setting up of systems of coordination, collaboration and dispute resolution between the two levels of government; and, v) establishment of capacity development of both national and county governments to implement their respective functions in the devolved system of governance. 

In his remarks, Mr. Julius Korir – Principal Secretary, State Department of Devolution reiterated the import and value of the draft sector plan in setting the momentum towards the last mile of Vision 2030. He emphasized the need for reorienting the sector focus towards business reforms, Local Economic Development (LED), Public Private Partnerships (PPPs), Capacity strengthening and Devolution Performance assessments. Notably, he also stated the need to refocus the Sector Plan towards completion of stalled projects initiated during the previous development plans (MTP I, II, III & IV) in order to infuse posterity.

The private sector was represented by Mr. Hillary Onami – Chairperson, KEPSA Devolution Sector Board and Mr. Benjamin Musungu from KEPSA management. Mr. Onami stated the need to incubate and support graduation of MSMEs, the importance of enhancing the county business climate, the need to engender County Competitiveness Assessments and the need to rationalize taxation regimes as catalysts for private sector investments in Counties. To foster progressive adoption of PPP modalities, he mentioned the need to recalibrate the 13 PPP modalities spelt out in the PPP Act to include permutations and combinations that are implementable and adaptive.

Premised on the need to accelerate achievement of the objects of devolution elucidated under Article 174 of the Constitution, the need to economically transform Counties and the need to strengthen intergovernmental relations, the stakeholders in principle, adopted the following eight flagship programs to be included in the Devolution Sector Plan 2023-2027:

1. Kenya Devolution Performance Acceleration Program
2. County Economic Transformation and Growth Program
3. Urban Areas and Cities Management Program
4. Intergovernmental Support Program
5. County Public Service Management Program
6. Capacity Development, Technical Assistance and Support Program
7. Sub-National Climate Change Program
8. Policy, Legal and Institutional Reforms Program

Notably, the County Economic Transformation and Growth (CETG) Program, is poised to play a key role in enhancing the ease of doing business in Counties. The key components of the CETG will include:

• Implementation of the County Competitiveness Index (CCI)
• Implementation of Public Private Partnerships (PPPs)
• Accelerating transition towards the green economy
• Provision of support for MSME linkages, productivity and scale-up
• Promotion of business dynamism in Counties
• Establishment of B2G mechanisms in addition to GRM and ADR mechanisms
• Support towards development of pro-business laws and policies at the County level