Devolved Governance and Financial Resource Mobilization in County Governments in Kenya: A Case of Kiambu County

Abstract

Financial resource mobilization encompasses making better use of and maximizing new and existing financial resources. The study sought to understand devolved governance and financial resource mobilization in county governments in Kenya with reference on Kiambu County Government.  The study was guided by three research questions: To what extent does institutional capacity of Kiambu County government engage in effective financial resource mobilization? To what extent does stakeholder participation affect financial resource mobilization in Kiambu County? How does financial policy implementation affect financial resource mobilization in Kiambu County? The study used two theories, Resource Mobilization Theory and Political Process Theory. The research study used mixed research methods and hence employed descriptive research design. The target population for this study were county employees working in the department of finance, economic planning, youth, women and business community leaders' representatives from Kiambu county. The target population for the study was 757. A sample size of a hundred and fourteen (114) respondents was drawn from the target population. Data from the questionnaires was analyzed quantitatively using descriptive and inferential statistics with the help of Statistical Package for Social Sciences and presented in frequency table, percentages graphs and pie charts for ease of interpretation. Data from the interview guide was analyzed qualitatively and incorporated into the quantitative data. The study established that the county government have empowerment and training programs that promotes employee's participation in County financial resources mobilization. A significant number of employees were neutral and while other disagreed that the employees have skills in financial mobilization. This indicated an existing gap within the county government.  The study finding revealed that intellectual resource within the county must be enhanced for proper management of financial resource. The study findings indicated that the national government revenue transfer to county government is sufficient in sustaining county sustainable development projects as long as appropriate accounting and auditing procedures in the various departments are enhanced to ensure financial resourcefulness. The study concludes that the county government has made efforts to enhance its financial resource mobilization, empower and train its employees. However, the study revealed that stakeholder's participation and hence the implementation of the financial policy is influenced by the level of awareness, inclusiveness in the formulation of the policies and transparency in the utilization of the mobilized financial resources.  Challenges such as mismanagement of the resources, non-transparency, issues of accountability, inconsistency in the application of the tax policy, avoidance and non-compliance by the tax payers, corruption and low level of stakeholder's awareness due to inadequate information hinders effective and efficient financial resource mobilization and therefore there is an urgent need by the county government to devise measure to address them. Stakeholders participation was found to be important in influencing financial resource mobilization, however low level of awareness was noted as being an issue of concern in this study. The study recommends the need to educate the taxpayers on the rationale, procedures, obligations and responsibilities related to the various taxes imposed by the County government, the relevant authorities should also improve the county legal system with a focus on fighting corruption as it could negatively affect the stakeholder's participation and financial policy implementation which conversely affects financial mobilization.