Financial Times of London Heaps Praise on Kenya's Devolution System

A London-based publication has hailed the impact made by devolution in Kenya, but indicates that the system can bring more benefits if the 47 counties join regional economic blocs to attract investment.

In a four-page report, the influential Financial Times newspaper says that devolution has enabled small scale farmers get better prices for their products.

The Financial Times cites Makueni County as an example, where area Governor Kivutha Kibwana helped about 12,000 local mango farmers get five times the price they were getting for the fruit previously through the establishment of a mango processing plant.

The report however warns that a majority of the 47 counties are “too small to attract investors." For instance Nigeria has a population four times that of Kenya, but has only 37 states.

"To counter this, some governors have formed regional blocs to attract investors and development agencies," the report says citing the Frontier Counties Development Council, a bloc of seven counties in northern Kenya, as an example.

The bloc was able to get $1.1 billion in investment from the United Nations and the World Bank for various projects including roads, water and agriculture.

Dubbed “Investing in Kenya”, the report says business confidence in the country “has improved dramatically” since the famous March 9th handshake between President Kenyatta and opposition leader Raila Odinga.

“The economy, which grew at 4.9 per cent in 2017, is expected to expand to 5.8 per cent this year,” the report says.

It also says Kenya's tourism sector is doing well, raking $1.2 billion last year and creating at least 1.1 million employment opportunities.

It also makes special mention of increased investment in renewable energy such as geothermal, solar, wind and hydro electricity — with half of Kenyan population connected to electricity, which is high by African standards.

The FT report further notes that although Kenya’s national debt “looks manageable in GDP terms, debt service ratios are worryingly high, particularly since the government continues to run a budget deficit of seven per cent.”