President William Ruto has said budgets and resources for devolved functions currently held by ministries and State departments will be transferred to counties in the next financial year.
Speaking on Friday, December 13, during the 11th National and County Governments Co-ordinating Summit, Ruto said the change will be effective Friday, November 20, 2024, with the Attorney General set to oversee the gazettement of functions that have already been transferred.
The unbundling of the functions from the National Government was done by the Inter-Governmental Relations Technical Committee (IGRTC), the agency mandated to establish frameworks for consultation and cooperation between the two levels of government.
“I now direct the committee to take the next step of systematically identifying and transferring the requisite budgetary and other resources tied to these functions in the next fiscal year,” Ruto said.
He reiterated his commitment to address challenges affecting counties, citing constraints within the national fiscal framework. These, he said, limit the national government’s ability to fully meet devolved units’ expectations for transfer of shareable revenue.
“This challenge cannot and should not be mistaken for a lack of commitment to devolution. Rather, it is a temporary difficulty arising from inherited fiscal vulnerabilities and the incomplete implementation of devolution,” he said.
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President Ruto called for harmonious inter-governmental relations to ensure effective and sustainable devolution, which is crucial for the success of the national socio-economic transformation agenda. He also committed to consistent engagement with county governments and their leadership, both formally and informally, and consulting governors to align strategic agendas.
“While the two levels of government are distinct, they are also interdependent. Our relationship must, therefore, be built on consultation and cooperation,” he said.
The President urged all ministries, departments and agencies at both levels of government to expedite dispute resolution by leveraging alternative resolution mechanisms.
He emphasised that this approach not only saves time and avoids costly delays, but also relieves citizens of the financial burden of legal fees while fostering mutual trust and collaboration.
“I am encouraged to note that many disputes are now being referred to the IGRTC for resolution, and I applaud their efforts in preventing disagreements from escalating into disputes,” he said.
President Ruto pointed out that collaboration between the two levels of government has achieved commendable alignment on key national priorities.
He cited the food security programme, which is aimed at lowering the cost of living, creating jobs for youth on a larger scale and making deliberate investments in critical sectors to drive rapid and inclusive economic growth.
“To achieve these goals, we agreed to collaborate in supporting strategic programmes in agriculture and food security, affordable housing, MSMEs and manufacturing, universal health coverage, and the adoption of digital technology,” he added.
The President said efforts to stabilise the economy have borne fruit, with inflation dropping to a historic low of 2.8 per cent, the currency strengthening and foreign exchange reserves becoming robust.
“In other words, the conditions are now in place for us to achieve a stronger economic outlook and maintain consistency in the disbursement of allocated revenues,” he said.
However, President Ruto pointed out that three significant challenges: High public debt, including pending bills, unsustainable public wage bills and inefficiencies in revenue collection and utilisation.
“To address these constraints effectively, unity of purpose and sustained collaboration between National and County governments are essential,” he said.
“Our continued cooperation will enable us to expand fiscal space, improve budgetary allocations.and ensure timely disbursements to counties,” the President said.
On healthcare, President Ruto noted that the redesigned universal health coverage strategy under Taifa Care is overcoming technological and operational challenges to ensure that every citizen, regardless of status or means, has access to quality and affordable healthcare.
He acknowledged that the challenges faced during the transition to the Social Health Insurance Fund and Social Health Authority reforms are due to the scale and ambition of Taifa Care.
“For the record, the scale, boldness and ambition of Taifa Care are unprecedented, and we are confident that the challenges will be resolved soon,” he said.
Deputy President Kithure Kindiki emphasised that devolution continues to play a critical role in decentralising decision-making, power and resources, thereby ensuring services are brought closer to the people.
“Our convening here is in line with what is expected of us to ensure devolution works,” he said.
Council of Governors Chairperson Ahmed Abdullahi, who is also the governor of Wajir County, reiterated that devolution has demonstrated that sustainable development comes from the bottom up.
“We need to continue to keep this path open to give the government a human face and bring development and decision-making closer to the people,” he said.
