Fiscal Asymmetric Decentralization and the Influence of County Fiscal Autonomy on Household Effects in Kenya

Cyrus Mwangi Munyua(1*), Stephen Muchina(2), Beatrice Ombaka(3),

(1) School of Business, Karatina University
(2) School of Business, Karatina University
(3) School of Business, Karatina University
(*) Corresponding Author

Abstract


Fiscal asymmetric decentralization is seen as the panacea in solving persistent income inequalities facing developing economies. Despite efforts to finance County governments, about 42% of Kenyan’s 47.6 million people still live below the poverty level. This study evaluates the influence of County fiscal autonomy on household effects in Kenya. Both primary and secondary data, collected from households in 47 county governments and the Commission on Revenue Allocation, respectively. A Sample of 4,813 households was drawn from 96,251 lists of households developed by Kenya National Bureau of Statistics. Cochran's correction formula was used. The result finds an insignificant negative correlation between county fiscal autonomy and household effects in Kenya. Further studies are recommended with diverse indicators. Findings in this paper are generalizable and a point of reference for policymakers in Kenya.


Keywords


fiscal; asymmetry; decentralization; IFMIS; reforms; PFM

Full Text:

PDF

References


Ball, R. & King, D. (2006). The private finance initiative in local government. Economic Affairs, 26(1), pp.36-40.

Cohen, J. M. & Hook, R. M. (1987). Decentralized planning in Kenya. Public Administration and Development, 7(1), pp.77-93.

Dickovick, J. T. & Riedl, R.B. (2010). Comparative assessment of decentralization in Africa: final report and summary of findings. Washington, DC: United States Agency for International Development (USAID).

Etingoff, K. ed. (2016). Ecological resilience: Response to climate change and natural disasters. CRC Press.

Kruk, M. E., Chukwuma, A., Mbaruku, G., & Leslie, H. H. (2017). Variation in quality of primary care services in Kenya, Malawi, Namibia, Rwanda, Senegal, Uganda and the United Republic of Tanzania. Bulletin of the World Health Organization, 95(6), p.408.

Lu, Y. & Sun, T. (2013). Local government financing platforms in China: A fortune or misfortune? (No. 13-243). International Monetary Fund.

Martinez-Vazquez, J. & McNab, R.M. (2006). Fiscal decentralization, macro stability, and growth.

Mitullah, W. V. & Nguri, J. (2012). Intergovernmental Relations Act 2012: Reflection and Proposals on Principles, Opportunities and Gaps.

Nudzor, H. P. (2014). An analytical review of education policy-making and implementation processes within the context of “decentralized system of administration” in Ghana. Sage Open, 4(2), p.2158244014530885.

Oates, W. E. (1994). Federalism and government finance. Modern public finance, 126(1999), pp.1120-1149.

Psycharis, Y., Zoi, M., & Iliopoulou, S. (2016). Decentralization and local government fiscal autonomy: evidence from the Greek municipalities. Environment and Planning C: Government and Policy, 34(2), pp.262-280.

Sahin, S. B., Lewis, B., & Lewis, J. (2012). Fractured futures: Indonesian political reform and West Timorese manganese mining. Global Change, Peace & Security, 24(2), pp.289-304.

Saunders, M., Lewis, P., & Thornhill, A. (2007). Research methods for business. London: Pitman, pp.124-126.

Slack, E., 2017. How Much Local Fiscal Autonomy Do Cities Have? A Comparison of Eight Cities around the World. Institute on Municipal Finance and Governance.

Smoke, P. (2017). Looking beyond conventional intergovernmental fiscal frameworks: principles, realities, and neglected issues. Central and Local Government Relations in Asia, p.64.

Stegarescu, D. (2009). The effects of economic and political integration on fiscal decentralization: evidence from OECD countries. Canadian Journal of Economics/Revue Canadienne d'économique, 42(2), pp.694-718.

Xie, D., Zou, H. F., & Davoodi, H. (1999). Fiscal decentralization and economic growth in the United States. Journal of Urban Economics, 45(2), pp.228-239.

Psycharis, Y., Zoi, M., & Iliopoulou, S. (2016). Decentralization and local government fiscal autonomy: evidence from the Greek municipalities. Environment and Planning C: Government and Policy, 34(2), 262-280.




DOI: http://dx.doi.org/10.33019/ijbe.v4i1.252

Article Metrics

Abstract view : 287 times
PDF - 250 times

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Creative Commons License

Integrated Journal of Business and Economics is licensed under a Creative Commons Attribution 4.0 International License.