@BdAfrica

MWENDA: Prepare counties to attract private capital - 3 months ago, 21 Mar 21:53

Kennedy Mwenda

The past years have witnessed county governments make fundamental progress in entrenching devolution into the social, economic and political fabric of the country.

As devolution continues to mature, counties are now facing competing financial demands from development and expenditure needs thus hindering their sustained capability to effectively provide crucial services to residents.

Under Article 216, the Commission on Revenue Allocation is mandated to make recommendation on financing of county governments. Article 212 of the Constitution gives the conditions which counties must meet in order to access loans.

They can only access a loan if the national government guarantees the loan. The county assembly must approve any loans that the county government intends to borrow.

The commission purposes to leverage on the present regulatory framework that govern county governments’ borrowing including the Public Finance Management Act 2012. Good legislation is important because it underpins sound debt management. It is vital that we build ...
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