Agenda Kenya
Kenya YearBook

Devolved funds

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This is a key intervention in the Government’s development strategy. Three notable ones are meant to foster social and economic equity in the population and regions — Constituency Development Fund (CDF), the Women’s Enterprise Fund and Youth Enterprise Fund.

Women’s Enterprise Fund

It was first budgeted for in 2007/2008. Its objectives are to promote women’s empowerment, poverty reduction and national development. Women have been targeted for their pivotal role in families and the economy. Various studies show such interventions have fundamental impact on poverty reduction and economic betterment globally. The fund was started with a Kshs2 billion ($25 million) kitty, with an initial Kshs1 billion ($11.8 million) allocation. In the 2011/12 Budget, it was increased by Kshs440 million ($5.2 million). Women entrepreneurs borrow through contracted banks and financial institutions after presenting their business plans to the Women Enterprise Fund. (See chapter on Gender and Children)

Youth Fund

The Youth Enterprise Development Fund was started in 2007 with an initial capital of Kshs1 billion ($11.8 million). Treasury increased it by Kshs500 million ($5.9 million) in 2008/9 and allocated another Kshs250 million ($2.94 million) for youth empowerment support centres countrywide. In the 2011/12 Budget, an extra Kshs385 million ($4.5 million)was added to the kitty. It has been growing in importance and has become a crucial tool enabling the youth to participate in economic development. The Fund has many success stories in rural and urban Kenya. (See chapter on Sports and Youth Affairs)

Constituency  Development Fund (CDF)

The fund has been hailed as one of the most innovative creations of the first term of the Kibaki administration (2003-2007). Unlike other State funding, CDF is sent directly to the constituency, thus avoiding delays associated with bureaucracy. Spending is decided upon at each of the 210 constituencies through local committees. CDF has created local consumer demand through various projects, and funding other local needs, including education, health and infrastructure. CDF allocation takes 2.5 per cent of ordinary revenues and decisions are taken on how to handle it under the County framework. In the June 2011/12 Budget it was allocated an extra Kshs1.8 billion ($21.2 million) as arrears owed, bringing the total allocation to an average  of about Kshs90.5 million ($1.1 million) for every constituency.

Kazi kwa Vijana

In the 2009/10 Budget, the Treasury introduced the Kazi Kwa Vijana programme that provides youth with income through public works projects and tackling unemployment among the majority young people. It aims at spurring productive activities and improving security by keeping them occupied. (See chapter on Sports and Youth). It is funded under the Kenya Youth Empowerment Project (KYEP). In the 2011/12 Budget it was boosted by Kshs210 million ($2.5 million), set aside for labour-intensive works and social services, bringing the total funding for KYEP to Kshs1.8 billion ($21.2 million) in the year.

Economic stimulus

The initial Kshs22 billion ($258.8 mil- lion) economic stimulus package was launched in July 2009 to spur economic growth and cushion the population against the vagaries of weather and the after-effects of the post- election violence. The two had impacted negatively on the country’s agriculture-dependent economy, resulting in a sharp decline in food production. Additional funds were set aside in the 2009/10 financial year for the construction of model secondary and primary schools, horticultural markets, jua kali sheds and public health centres in all the 210 constituencies.It was expanded to include the construction of computer centres and recruitment of key staff such as teachers, nurses and community health officers in each constituency.

Tenders were awarded for the construction of public health centres, horticultural markets and jua kali sheds in 170 constituencies. This cost  the Treasury about Sh5.6 billion ($65.9 million). The ESP has been extended into the 2010/11 financial year. The stimulus package helped reduce the maize production deficit in 2010 from six mil- lion bags to four million. The stimulus package money was also used to feed the hungry and subsidise the price of fertiliser. Implementation of the programme, which was expected to end in December 2009, took longer than expected due to consultation with relevant stakeholders. Selection of projects was carefully done to ensure they have a rapid impact on the targeted population. In 2011/12 Budget, The Treasury continued with the allocations through, amongst others:

  • Kshs12 billion ($120 million), comprising of Kshs8.6 billion ($101.2 million)under the Ministry of Finance for direct transfer to National Irrigation Board for various irrigation projects countrywide.
  • Kshs17.3 billion ($25 million) or Local Authorities Transfer Fund (Latf)
  • Allocation of S4 billion ($75.3 million) under the Ministry of Agriculture for provision of water in 170 constituencies.
  • Allocation of Kshs1.1 billion or Kshs30 mil- lion ($352,941) per constituency for 20 water

 

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