Assessment of local authority transfer fund in poverty Alleviation in mavoko municipality

Abstract

In recent years, there have been widespread attempts both to redefine the role of the public sector in developing countries and to improve its performance. An increasingly important component of these reforms has been the introduction of policies to decentralize the functions of government. As a policy, decentralization seeks to improve service delivery through paving a ‘short road to accountability’ (Smoke, 2001) in that citizens under a centralized regime normally have to voice their demand for better services to central authorities who in turn direct local level bureaucrats to respond. However, if well conceived and implemented, decentralization makes it easier for citizens to voice their demands on government, as well as better monitor the performance in services delivery. In Kenya the enactment of Local Authorities Transfer Fund Act (LATF) of 1998 and the subsequent Local Authorities Transfer Act regulations of 1999, saw introduction of a fiscal decentralization process. The process was aimed at improving services delivery to the public through local community participation and improvement financial management, revenue mobilization and accountability in local authorities. Designed to actively engage local citizens on their priority needs, LATF holds strong opportunities in poverty reduction and national development if well managed. Taking Mavoko municipality as a case example, this research project first examines the conceptual foundations upon which LATF is founded and implemented. It then tries to assess how LATF as fiscal decentralization process has contributed to urban poverty reduction through involving local communities in its planning, management and implementation. Key focus is also given to its contribution in funding infrastructure services at the local level and in improving accountability through the existing monitoring and evaluation systems and frameworks. The research project concludes with key observations and recommendations on how LATF can be improved both at national and local authority levels. With most local authorities faced with challenges in pro poor services delivery, this thesis provides some key insights and policy recommendations in using LATF to unlock the urban management challenges such as access to infrastructure services and poverty reduction. A case study approach through an in-depth analysis of LATF implementation in Mavoko was adopted. This was found to be important in aiding the researcher connect the micro level to the macro levels, social and administrative structures and processes in administration and implementation of funds and how policies at the national level have impacts on local level implementation. Secondary data collection was done through extensive literature review while primary data was obtained through interviews.