DFI 402 GROUP ASSIGNMENT:

1) Many scholars and economists have argued in favour of devolution as an ideal

governance model for Kenya. Do you agree with this view? Discuss.

Yes, I agree with the view that devolution serves as an ideal governance model for
Kenya. Since its implementation in the 2010 Constitution, devolution in Kenya has been
widely recognized for bringing significant improvements in governance, service delivery,
and local empowerment. This decentralized model offers several advantages in
addressing Kenya’s diverse and often disparate regional needs, enhancing accountability,
and promoting economic growth and equity.

Here are some of the core arguments supporting devolution as an effective governance
model for Kenya:

Enhanced Service Delivery: With decision-making and resource allocation closer to the
grassroots level, county governments can more efficiently address the unique needs of
their constituents. This model allows for quicker, more context-sensitive responses to
health, education, infrastructure, and other public services. Counties have made notable
progress in constructing hospitals, improving schools, and building roads, which has
improved access to essential services for millions of Kenyans.

Increased Accountability and Reduced Corruption: By decentralizing governance,

citizens have more access to and oversight of their local leaders. Devolution fosters
transparency and accountability because citizens can more directly monitor resource use
and demand better governance. This has led to some counties demonstrating more
responsible spending and effective development planning. However, the model also
requires robust oversight mechanisms to ensure that corruption at the local level is
mitigated.

Promotion of Local Economic Growth: Devolution allows counties to harness their

unique resources, cultural practices, and economic strengths to drive local development.
For example, counties with natural resources like agriculture, mining, or tourism can
directly benefit from revenue generated in their regions, leading to more equitable
regional development. Devolution has also encouraged investment in local businesses
and created employment opportunities within counties, addressing urban migration
challenges and fostering economic growth at the grassroots level.

Political Stability and Inclusion: By distributing power more evenly across the country,
devolution has contributed to political stability. In the past, power was concentrated in
Nairobi, which led to the perception of marginalization among other regions. The
devolved structure helps reduce the risk of political and ethnic tensions by allowing
communities to have a say in their governance. Regional governments also improve
representation for minority groups, enhancing social cohesion and reducing
marginalization.

Responsive Disaster Management and Conflict Resolution: In areas prone to natural

disasters or regional conflicts, devolved governments can respond more swiftly and
appropriately to crises. County governments, familiar with the local terrain, cultures, and
conflict dynamics, can work with local leaders and residents to mitigate and manage
conflict, resolve disputes, and implement disaster preparedness strategies.

However, while the benefits are substantial, devolution in Kenya faces challenges,
including regional inequalities, corruption at the county level, and inefficiencies in
 coordination between national and county governments. These issues need continued
attention to ensure that devolution realizes its full potential as a governance model.

In conclusion, devolution remains a powerful tool for Kenya's development and

governance if adequately supported, effectively monitored, and continuously refined.
With a commitment to transparency, capacity-building, and community engagement,
devolution can fulfill its promise of fostering equity, representation, and sustainable
development across Kenya.

2) Kenya government has severally been accused of corruption and inefficiency in delivery
of services. As a result, you have been hired by the government to suggest methods that
can be adopted to reduce corruption and improve service delivery. What suggestions
would you give?

To tackle corruption and inefficiency in Kenya’s government service delivery, several

evidence-based strategies can be implemented. My recommendations fall into five key
areas: enhancing transparency and accountability, improving public sector capacity,
strengthening enforcement, leveraging technology, and fostering a culture of integrity and
civic engagement.

Here are specific suggestions for each of these areas:

1. Enhancing Transparency and Accountability

Adopt Open Government Initiatives: Implement policies that make government data on
budgets, public expenditures, and procurement available to the public. Open government
data allows citizens and watchdog organizations to monitor spending, contracts, and
project progress.
Regular Audits and Reporting: Conduct regular, independent audits of government
agencies and departments. Publicly disclose audit results to increase transparency and
accountability. This practice has proven effective in identifying misuse of funds and
holding officials accountable.

Citizen Participation Platforms: Encourage citizen input in government decision-making

through participatory budgeting and service delivery forums. Involving citizens directly
can act as a check on corruption and aligns government actions with community needs.

2. Improving Public Sector Capacity and Efficiency

Training and Capacity-Building Programs: Equip government employees with the skills
needed for effective service delivery, focusing on project management, ethical practices,
and financial management. Building these skills helps minimize errors and inefficiencies.

Performance-Based Incentives: Implement a performance-based reward system where

government employees are incentivized for transparent, efficient, and accountable
service. Linking bonuses or career progression to key performance indicators can
motivate employees to work more effectively.

3. Strengthening Enforcement and Legal Measures

Strengthen Anti-Corruption Agencies: Provide adequate funding, autonomy, and

enforcement powers to institutions like the Ethics and Anti-Corruption Commission
(EACC). Increased independence and resources can enable these agencies to act
effectively against corruption, particularly in high-profile cases.

Whistleblower Protections: Strengthen laws that protect whistleblowers and encourage

reporting of corrupt practices. Assurances of anonymity and protection against retaliation
are crucial to fostering an environment where government staff and citizens feel safe
reporting misconduct.

Swift and Transparent Judicial Processes: Streamline and expedite corruption-related

cases to deter corrupt practices. Introducing specialized anti-corruption courts and
ensuring that convicted offenders face clear penalties can serve as a deterrent.
4. Leveraging Technology for Efficiency and Monitoring

Digitize Government Services and Transactions: Implement e-government systems that

reduce human interactions, especially in high-risk sectors like licensing, tax collection,
and public procurement. Digital platforms can lower opportunities for bribes and increase
transparency, as records are easy to track.

Implement Blockchain for Procurement: Adopting blockchain technology in procurement

processes could create a permanent, transparent record of transactions. This system
makes it difficult for officials to alter records or engage in fraudulent procurement
activities.

Use Data Analytics for Fraud Detection: Employ data analytics to monitor patterns in
government spending, tax collection, and service delivery. Predictive analytics can
identify unusual patterns that may indicate fraud or inefficiency, allowing for timely
interventions.

5. Fostering a Culture of Integrity and Civic Engagement

Civic Education and Public Awareness Campaigns: Educate citizens about their rights
and responsibilities, particularly concerning corruption reporting and the consequences of
corruption. Awareness campaigns, particularly targeted at youth, can shift societal
attitudes over time to discourage corruption.

Encourage Civil Society and Media Oversight: Strengthen the role of civil society
organizations and the media in oversight by reducing restrictions on their operations.
Engaged, informed citizens and media can apply pressure for accountability and expose
corruption when it occurs.

Ethics Education in Schools: Instill a culture of integrity from a young age by introducing
ethics and anti-corruption education into school curricula. Teaching future generations
about ethics in governance can gradually shift the social norm towards zero tolerance for
corruption.
3) Many of the parastatals that were privatized by government of Kenya in the 90s have
been facing serious financial challenges in the recent years. You have been identified to
advice government on how to turn them around. Suggest methods the government can
use to stabilize them financially.

To stabilize and improve the financial viability of Kenya's privatized parastatals, the
government can employ several strategies. These involve improving governance,
strengthening financial management, optimizing operational efficiency, exploring new
revenue sources, and fostering partnerships with private sector players. Here are some
practical suggestions:

1. Enhance Governance and Accountability

Revamp Boards and Management Teams: Appoint experienced, competent, and

independent board members and executives. Transparent recruitment and appointment
processes can ensure parastatals are led by capable professionals with a clear mandate to
drive reform.

Implement Robust Corporate Governance Frameworks: Adopt and enforce corporate

governance standards that emphasize accountability, transparency, and ethical conduct.
Regular board reviews and adherence to codes of conduct can help in aligning
management with financial and operational goals.

Conduct Regular Performance Audits: Independent performance audits should be

conducted periodically to assess financial health, operational efficiency, and compliance
with set targets. The results should be publicly disclosed, allowing stakeholders to hold
the entities accountable.

2. Strengthen Financial Management and Planning

Optimize Financial Oversight and Controls: Establish strict financial controls and
processes to prevent mismanagement and reduce waste. Effective internal audit systems
and frequent financial monitoring can curb leakages and ensure that funds are properly
allocated.

Institute Debt Restructuring Plans: Many parastatals are burdened by high debt levels.
Renegotiating debt terms with creditors, including extending payment periods or
lowering interest rates, can ease cash flow pressure and give these entities room to
recover.

Implement Strategic Cost-Cutting: Conduct a thorough review of all operating expenses

and eliminate redundant costs without affecting service quality. This may involve
reducing administrative costs, downsizing, and automating processes to reduce
operational costs.

3. Improve Operational Efficiency

Modernize and Upgrade Technology and Infrastructure: Investing in new technology and
infrastructure can make parastatals more competitive and efficient. For example, adopting
digital platforms for operations, sales, and customer engagement can improve service
delivery while reducing operational costs.

Institute Key Performance Indicators (KPIs): Set clear, measurable targets for all
departments within each parastatal. Performance-based management and reporting
encourage efficiency and make it easier to identify areas needing improvement.

Restructure Operations to Focus on Core Activities: Parastatals often suffer from mission
drift, where they engage in too many activities outside their primary objectives.
Streamlining operations and focusing on core services or products allows these entities to
excel in specific areas, maximizing profitability.

4. Diversify Revenue Streams

Expand Product or Service Offerings: Parastatals can look to introduce new,

complementary products or services to increase revenue. For example, a utility company
might consider diversifying into renewable energy projects to access new revenue
streams while aligning with sustainability goals.
Leverage Public-Private Partnerships (PPPs): Encourage partnerships with the private
sector to share the burden of capital-intensive projects and access new markets. PPPs can
attract private sector innovation and efficiency, reduce costs, and provide the parastatals
with additional sources of revenue.

Explore Strategic Asset Disposal: If parastatals own non-core assets, such as land or
buildings, the government could consider selling or leasing them. This generates
additional funds that can be reinvested in core operations or used to reduce debt burdens.

5. Build Capacity and Culture of Accountability

Invest in Employee Training and Development: Skilled employees improve productivity

and operational efficiency. Offering continuous training to staff members helps them
adopt modern business practices, customer service, and compliance standards that
contribute to profitability.

Strengthen Incentive and Accountability Systems: Establish performance-based rewards

to motivate employees and management. Additionally, enforce strict accountability
mechanisms, including sanctions for underperformance or unethical practices, to ensure
all employees align with parastatal goals.

6. Leverage Government Support and Policy Reforms

Access Government Support on Strategic Projects: Where parastatals play an essential

public role, the government may consider offering subsidies, grants, or tax incentives.
However, such support should be conditional on achieving specific performance targets
to avoid fostering dependency.

Implement Favorable Regulatory Reforms: Streamlining regulatory frameworks and

reducing bureaucratic hurdles can help parastatals operate more freely and competitively.
For instance, favorable regulations for pricing or market entry could allow them to
compete better with private sector players.

7. Engage in Transparent Reporting and Communication

 Enhance Communication with Stakeholders: Clear communication of financial
performance, strategic goals, and challenges fosters confidence among investors, the
public, and employees. Parastatals that engage transparently are more likely to gain
support for restructuring efforts.

Publish Financial Reports and Progress Updates: Regular reporting increases

accountability and provides the government with a clearer picture of parastatal
performance, enabling timely interventions.

4) The cost sharing policy in education in Kenya has been blamed for the limited access to
education by many in the rural areas. Do you agree with this view? Discuss.

Yes, I agree that the cost-sharing policy in education has limited access to education for
many in rural areas in Kenya. Cost-sharing, implemented as a policy to alleviate
government spending on education by requiring households to share in education costs,
has inadvertently placed financial pressure on many low-income families, especially in
rural areas. While it was initially designed to make education financing more sustainable,
cost-sharing has created a series of barriers that disproportionately affect marginalized
rural communities.

Key Reasons Cost-Sharing Limits Access to Education in Rural Areas

High Financial Burden on Low-Income Families:

In rural areas, households often have limited sources of income and depend on
subsistence farming or informal jobs with minimal and inconsistent earnings. With the
cost-sharing policy, families are responsible for expenses such as school fees, uniforms,
books, and transport, which can be overwhelming. For many, meeting these costs is
unsustainable, leading children to drop out of school or fail to enroll at all.
In regions where the poverty rate is particularly high, prioritizing basic needs such as
food and shelter over education becomes necessary, further limiting rural access to
schooling.

Gender Disparities in Education Access:

The cost-sharing policy disproportionately affects girls in rural areas, where families may
prioritize the education of boys when resources are limited. Financial constraints often
force families to choose which children can attend school, leading to lower enrollment
and higher dropout rates among girls. This perpetuates gender disparities in education,
limiting opportunities for women in the workforce and creating cycles of poverty within
rural communities.

School Infrastructure and Resource Gaps:

Cost-sharing has resulted in inadequate funding for school infrastructure and resources,
as rural schools often rely heavily on government and parental contributions. However,
because rural families may not afford significant contributions, schools in these areas
tend to have poorly maintained facilities, lack essential learning materials, and suffer
from a shortage of qualified teachers.

In urban areas, where households may have a higher ability to contribute, schools are
often better equipped, widening the urban-rural educational divide.

Poor Accessibility and Increased Dropout Rates:

Rural families face additional indirect costs that impact school attendance, such as
transport costs or, in some cases, boarding fees when schools are located far from their
homes. Cost-sharing means that these families bear the full burden of these costs, often
leading to increased dropout rates, especially in remote areas.

For many rural students, high absenteeism or the need to work on family farms results
from the financial strain of balancing educational costs with household needs.

Economic Disparities Exacerbated by Educational Inequities:

Access to quality education is closely linked to economic opportunities, and by limiting

rural children’s access to education, cost-sharing policies contribute to persistent
economic disparities. Rural students who lack access to consistent education miss out on
the skills and qualifications needed to secure stable, well-paying jobs, reinforcing cycles
of poverty and limiting rural areas' potential for economic growth.

Potential Solutions to Improve Access in Rural Areas

To address the limitations caused by cost-sharing in rural areas, the government could
consider policies aimed at reducing the financial burden on families and improving the
quality of education:

Increase Public Funding for Rural Schools: Allocating more government funds to rural
schools to cover essential costs can help reduce reliance on cost-sharing. Subsidies for
rural schools would allow them to provide free textbooks, maintain facilities, and hire
qualified teachers, improving educational quality without adding financial strain on rural
families.

Introduce Conditional Cash Transfers or Education Stipends: Providing conditional cash

transfers or education stipends to low-income families can help them meet the costs
associated with schooling. Programs that provide small financial incentives for school
 attendance, especially for girls, have proven effective in other regions, helping to reduce
dropout rates and improve educational outcomes.

Fee Waivers for Vulnerable Families: Instituting fee waivers for families who cannot
afford school-related costs ensures that children from low-income households can still
attend school. This policy could particularly benefit rural areas by removing a major
barrier to education.

Strengthen Free Primary and Subsidized Secondary Education: Fully covering primary
education costs and expanding subsidies to secondary education in rural areas would
increase enrollment and retention rates. These subsidies could include not just tuition but
also support for uniforms, transport, and learning materials, addressing the multiple costs
that families face.

Improve Community-Based Support and Partnerships: Engaging local communities,

NGOs, and private organizations to support rural education initiatives can help fill gaps
in funding and resources. These partnerships could provide scholarships, build school
infrastructure, and supply learning materials, helping rural schools to offer better
educational services without relying on parental contributions.

5) Is betting curse or a boon? Suggest methods the government of Kenya can use to make
betting industry thrive without hurting the society.

Betting can be both a curse and a boon, depending on how it is regulated and the
safeguards in place. In Kenya, the betting industry has grown rapidly, providing
employment opportunities, tax revenue, and entertainment. However, it has also led to
negative social consequences, including gambling addiction, financial stress, and
increased poverty, particularly among young people. The Kenyan government, therefore,
faces the challenge of harnessing the benefits of the betting industry while protecting
society from its harms.

Benefits (Boon) of Betting

Revenue Generation: The betting industry generates substantial tax revenue for the
government, which can be used to fund public services and development projects.

Job Creation: Betting companies contribute to employment, both directly within the
industry and indirectly in areas such as advertising, technology, and retail.

Economic Stimulus: The betting industry stimulates growth in various sectors, including
media, sports, and entertainment. Partnerships with sports organizations also support
local leagues, players, and facilities.

Negative Impacts (Curse) of Betting

Gambling Addiction: Unregulated betting can lead to addiction, affecting mental health,
family stability, and productivity, especially among vulnerable young people.

Financial Strain and Poverty: Many Kenyans, particularly those with low income, may
spend excessive amounts on betting, which can exacerbate poverty and lead to debt.

Increased Crime and Social Issues: Gambling addiction and financial losses may increase
desperation, potentially leading to crime, domestic violence, and other social issues.

Strategies to Make Betting Industry Thrive Without Hurting Society

Implement Strict Regulatory Frameworks

Set Betting Limits: Establish betting caps to limit the amount individuals can wager daily
or weekly, preventing excessive financial losses.
Age and Identity Verification: Ensure robust age verification to restrict access to minors
and require ID verification to promote responsible gambling.

Monitor and License Betting Operators: Issue licenses only to betting operators who
demonstrate responsible gambling practices. This could involve setting rules for fair
odds, transparent winnings, and complaint-handling mechanisms.

Encourage Responsible Gambling Practices

Public Awareness Campaigns: The government can work with betting companies to run
educational campaigns about the risks of gambling addiction and responsible betting
practices. These campaigns should target youth and encourage a healthy attitude toward
gambling.

Self-Exclusion Programs: Require betting companies to offer self-exclusion programs

that allow individuals to restrict their access if they feel their gambling is becoming a
problem.

Betting Industry Code of Conduct: Develop a code of conduct that all betting operators
must follow, including advertising guidelines to avoid targeting vulnerable populations
and promoting betting as a quick way to make money.

Impose a Levy on Betting Profits to Fund Social Programs

Establish a “Responsible Betting Fund”: Introduce a levy on the profits of betting

companies to create a fund for programs aimed at preventing addiction and supporting
individuals affected by problem gambling.

Funding for Youth and Sports Programs: Allocate part of the tax revenue from betting to
fund educational, health, and sports programs for young people. This approach would
ensure that betting profits are reinvested into communities.
Strengthen Advertising Regulations

Limit Advertising During Peak Hours: Restrict betting advertisements on television and
radio during peak hours, especially when young audiences are likely to be watching or
listening.

Clear “Gamble Responsibly” Messages: Mandate clear and visible warnings on all
betting advertisements, and avoid portraying betting as a means to escape financial
troubles or a guaranteed way to earn money.

Ban Celebrity Endorsements: Prohibit celebrities from endorsing betting platforms, as

they can strongly influence young people to try gambling.

Encourage Alternative Entertainment Options

Promote Non-Gambling Recreational Activities: By investing in affordable and

accessible recreational activities, such as sports, arts, and digital games, the government
can provide youth with healthy alternatives to betting.

Invest in Skill-Based Competitions and Events: Support and popularize competitions,

events, and e-sports that involve skill rather than chance. This can reduce the allure of
gambling and encourage more productive recreational pursuits.

Collaborate with Experts for Research and Data Collection

Monitor and Research Betting Patterns: Work with universities, research institutions, and
mental health professionals to monitor gambling trends and assess the social impacts.
Data-driven insights can inform better policy-making and more targeted interventions.
 Create Early Intervention Programs: Based on research, implement early intervention
programs in schools, colleges, and workplaces to identify individuals at risk of gambling
addiction and provide support.

Enhance Digital and Financial Security

Digital Safeguards for Online Betting: Work with technology experts to enforce digital
security measures that monitor unusual betting patterns. This can help detect potential
fraud and prevent money laundering.

Limit Mobile Money Transfers for Betting: Set daily or weekly transaction limits on
mobile money accounts linked to betting, thereby controlling impulsive gambling.

6) The senate was established mainly to protect and make devolution work in Kenya.
Suggest methods that government can use to enhance its role of the oversighting county
governments.

To strengthen the Senate's role in overseeing county governments and ensuring effective
devolution in Kenya, the government can adopt a variety of strategies aimed at enhancing
transparency, accountability, resource allocation, and public engagement. Here are some
recommended methods to empower the Senate in its oversight role:

1. Strengthen Senate Oversight Mechanisms

Expand Senate’s Audit Powers: Give the Senate greater authority to conduct independent
audits of county government finances and operations. This would involve reviewing the
allocation and utilization of resources, as well as reporting any mismanagement or
corruption to relevant authorities.

Establish County Oversight Committees: These committees, composed of senators and

technical experts, would work closely with county governments to ensure compliance
with national policies and legal frameworks. They could regularly review county
performance, make site visits, and interact with local communities.

2. Improve Financial Transparency and Accountability in Counties

Mandate Public Disclosure of County Financials: Require counties to publish budgets,

expenditures, and progress reports on a public platform accessible to citizens and Senate
members. Publicly available data makes it easier for the Senate and citizens to hold
county governments accountable.

Introduce Financial Management Training: Provide financial management and budget

training to county government staff, focusing on compliance, transparency, and anti-
corruption. Senators could initiate workshops or training sessions for county officials to
ensure they meet standards.

3. Enhance Collaborative Oversight with National Agencies

Coordinate with the Auditor-General: The Senate should work closely with the Auditor-
General’s office to review county audit reports and follow up on issues raised. The
Auditor-General can provide critical insights, while the Senate can use this information to
make recommendations or take corrective actions.

Work with Anti-Corruption Agencies: By collaborating with the Ethics and Anti-
Corruption Commission (EACC), senators can swiftly address corruption issues within
counties. This collaboration would allow for quicker investigation and prosecution of
cases involving misuse of funds or abuse of office.

4. Increase Public Participation and Civic Engagement

Establish Public Forums and Hearings: Hold regular public forums and hearings within
counties, allowing citizens to voice concerns, provide feedback, and participate in
decision-making. These forums enable senators to gain firsthand knowledge of county
issues and assess the public's satisfaction with local governance.
Create a Digital Feedback Platform: Develop a digital platform where citizens can report
issues, provide suggestions, and track the performance of their county governments. A
Senate-managed platform would make it easier to identify counties struggling with
governance and resource allocation, prompting targeted Senate interventions.

5. Implement Performance-Based Funding for Counties

Link Funding to Performance Metrics: Allocate county funds based on performance

indicators such as financial management, project completion, and compliance with
national policies. Performance-based funding would motivate counties to be more
accountable and efficient in managing their resources.

Establish a Senate Review Panel for Funding Approval: Before additional funds are
disbursed to counties, a Senate review panel could assess county performance against
agreed-upon benchmarks. This review process would ensure that counties demonstrating
responsible governance receive further support.

6. Introduce Legislation to Clarify and Expand Senate Powers

Amend the Constitution or Relevant Laws: Where possible, amending the Constitution to
give the Senate more explicit oversight powers over county governments would empower
it to enforce accountability and transparency. Expanded authority could include subpoena
powers and the ability to impose sanctions.

Develop Clear Mandates for Oversight Functions: Introduce legislation that defines the
Senate’s role in monitoring specific sectors, such as healthcare, education, and
infrastructure. Specialized mandates would enable the Senate to focus on key areas
critical to county performance and service delivery.

7. Establish an Office of the Senate Ombudsman for Counties

Create a Senate Ombudsman Office: Establishing an ombudsman office within the Senate
focused solely on county issues would help identify, investigate, and address complaints
from the public regarding county services and governance.
Ensure Independent and Impartial Investigations: The ombudsman could handle
complaints related to county governance, monitor compliance with national standards,
and recommend corrective measures. This setup would make it easier to address citizen
concerns and systemic issues within counties.

8. Conduct Regular Capacity-Building and Support for Senators

Provide Training on Oversight and Governance: Conduct regular training for senators on
best practices in oversight, financial analysis, and legislative governance. Equipped with
the necessary skills, senators can more effectively hold county governments accountable.

Encourage Knowledge-Sharing Forums Among Senators: Knowledge-sharing forums

where senators can share successful oversight strategies would foster collaboration and
improve overall Senate oversight capabilities.

9. Engage Independent Research and Policy Institutions

Partner with Universities and Think Tanks: Collaborate with universities and think tanks
to conduct independent research on county performance, spending patterns, and
governance challenges. Senators can use this data to craft better policies and recommend
actionable solutions.

Establish a Senate Research and Monitoring Department: A dedicated department for

research within the Senate could provide senators with regular reports on counties'
progress, policy compliance, and spending, enabling data-driven decision-making.

10. Implement Performance-Based Assessments of County Governments

Publish Annual County Performance Reports: Require counties to undergo annual

performance reviews, the results of which are published for public access. These reports
should cover budget utilization, service delivery, and project completion rates, making it
easier for the Senate to compare performance across counties.

Benchmark Best Practices Across Counties: Highlight counties that demonstrate strong
governance, accountability, and transparency. Senators can work to promote these best
practices, encouraging other counties to adopt similar approaches for improved service
delivery.