administrative and fiscal decentralisation in east africa

AdministrativeAnd FiscalDescentralizationin East Africa

East Africa or Eastern Africa is the easterly region of the African continent, variably defined by geography or geopolitics. In the UN scheme of geographic regions, 19 territories constitute Eastern Africa:Tanzania, Kenya, Uganda, Rwanda, and Burundi (which make the East African Commu-nity (EAC)); Djibouti, Eritrea, Ethiopia and Somalia (collectively known as the Horn of Africa);Mozambique and Madagascar, Malawi, Zambia, and Zimbabwe (often included in Southern Africa); Mauritius, Seychelles and Comoros (small island nations in the Indian Ocean) and Réunion and Mayotte (French overseas territories also in the Indian Ocean).

For the purpose of this project East Africa refers to the member states of the East African Com-munity (EAC): Burundi, Kenya, Rwanda, Tanzania and Uganda.

ADMINISTRATIVE AND FISCAL DESCENTRALIZATION in East Africa

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A. DecentralizationDecentralization is the creation of local self-govern-ment; where locally elected representative bodies are assigned responsibilities and resources and make independent decisions with regard to local develop-ment issues in general, and in particular on the provi-sion of services to their citizens. When the transfer of authority is sufficient, local governments obtain political, financial, and administrative autonomy to better address community needs.

In environments with little tradition of citizen par-ticipation, decentralization can be an important first step in creating regular, predictable opportunities for citizen-state interaction. The process of decentraliza-tion can itself enhance the opportunities for participa-tion by placing more power and resources at a closer, more familiar, more accessible level of government.

Decentralization in East Africa

- Brings decision making to the level closest to the people.

- Builds national integration, addresses historical injustices and promotes national healing and reconciliation through ensuring re-presentation of regional diversity.

- Enhances local development and service delivery through good governance, improved accounta-bility, participatory planning, budget-ing and inclusive service delivery.

- Deepens the entrenchment of democracy and democratic institutions.

- Contributes to mobilize local capacities and resources to foster local initiatives.

- Accelerates attainment of national development objectives and Millennium Development Goals (MDGs) based on country-specific situations.

- Increases the legitimacy of national governments both towards citizens and the international community.

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Decentralization


B. Decentralization

Decentralization in East Africa. While the countries of East Africa have experienced widely divergent leaderships and ideologies, their structures of gover-nance have moved in remarkably similar directions. They have all passed through periods as single-party or non-party regimes, and are all currently invested in mulit-party democratic practices. While local govern-ment has existed in all five countries for an extended period, the responsibilities and revenue bases allocat-ed to the local level has been limited.

The five East African Community partner states are at different levels of reforming local government to meet respective country objectives, with policies fo-cused on the need for efficient, effective and account-able local governments that deliver services to the local communities at affordable costs and promote lo-cal development. Local governments are increasingly seen as the level where poverty reduction and wealth creation can be addressed within a framework of in-creasing citizen participation.

This situation is illustrated by the Kenya Vision 2030, Vision 2020 for Rwanda and Uganda, and 2025 for Tanzania, and their national economic growth and poverty reduction strategies. Country experiences show that while governments have embraced the need for decentralization and have put legislative mecha-nisms in place, issues of fiscal decentralization remain to be addressed in a meaningful manner.

Inadequate resources and management skills both at the national and local government levels continue to slow down efforts towards decentralization. Im-portant issues of accountability and efficient public expenditure management, participatory budgeting, greater transparency in public procurement and con-tracting procedures, still need to be streamlined for a higher development impact. Similarly issues of fiscal mandate and power to borrow in order to access ad-ditional resources to finance development programs are also waiting.

01/BURUNDI02/KENYA03/RWANDA04/TANZANIA05/UGANDA

Decentralizationin East Africa


Burundi is in the process of implementing decen-tralization following a strong centralized system. In 2005, a local government law was enacted giving the communes the autonomy of self management. Dem-ocratic elections took place and various organs were put in place at different levels.

Vision BURUNDI 2025 and the Poverty Reduction Strategic Plan (CSLP) aim at accelerating attaining the Millennium Development Goals (MDGs), how-ever the transfer of power to the local governments has been slow and it is feared this will negatively im-pact the realization of the MDGs.

Kenya: As of 1995 there has been increased investment in the decen-tralization process in Kenya, with a focus on increasing participation, enhancing service delivery and strengthening accountability. The Local Authorities Transfer Fund (LATF), the Local Authorities Service Delivery Action Plans (LASDAP) and the imple-mentation of Results Based Management (RBM) all worked to strengthen the role and effectiveness of local government. On the 27th August 2010 Kenya adopted a new Consti-tution with a devolved government system, providing for a two-tier devolved governance model. Functions, roles and responsibilities are specifically assigned be-tween the national level and the 47 counties govern-ments. The objectives of the devolved governance ap-proach, in line with the Kenya Vision 2030, includes the promotion of democratic and accountable gov-ernment, citizen participation, fostering of national unity, and ensuring equitable sharing of national and local resources. While this new structure provides a number of opportunities to strengthen local govern-ment there remain challenges in how these processes will be implemented.


Rwanda adopted its decentralization policy in May 2001. The policy was adopted in order to achieve three main goals: (i) promoting good governance, (ii) poverty reduction, and (iii) effective accountable service delivery.

The Rwanda Decentralization Strategic Frame-work was adopped in 2007, and is currently in the second phase of implementation. The Rwanda Vi-sion 2020 sets good governance as the 1st pilar, to be implemented through a process of citizen empower-ment with the aim of eradicating poverty by 2020. There has been significant good practice to come out of this process for local governance and decen-tralization.

Tanzania: Good gover-nance is one of the five core goals of the 2025 vision for Tanzania. In 1998 the Government of Tanzania published a comprehensive policy on Decentralization by Devolution under-pinned by key princi-ples for the transforma-tion of Tanzanian local government system: Political decentraliza-tion, Fiscal decentral-ization, Administrative decentralization, Service delivery decentraliza-tion, guided by the principle of subsidiary and re-defined central-local relations. The first phases of the Local Government Reform Programme (LGRP) was implemented for the period in 1998-2008, and the second phase was recently adopted (2009-2014). The overall goal of the programme is accelerated and equitable socio-economic development, public service de-livery and poverty reduction across the country, and to transform Local Governments to strategic leaders and coordinators of socio-economic de-velopment, accountable and transparent service delivery and poverty reduction actors, in their areas of jurisdiction.

As part of celebrating 50 years of independence, the Government has initiated the process of re-viewing the Constitution of the United Republic of Tanzania. It is expected that under the people engineered constitutional process the agenda of decentralization by devolution will have high pri-ority.


Uganda has one of the most devolved systems of gov-ernment in the region, based in the experience and les-sons learned during the civil conflicts. In the 1980’s, the National Resistance Movement (NRM) Party established community-based Resistance Councils (RCs) responsible for maintaining law and order, setting in motion a new way of exercising democracy at the local level. This 5-tier system became the basis for the current local council system, enacted in 1997, and promotes participation and people’s empower-ment to enhance accountability and responsibility.

The East African Community (EAC) recognizes the role of local governments in the deepening and widening of the integration process. The Council of Ministers has invited proposals on how to integrate the local governments in its governance, programs and projects and in re-gional development. The last ten years have re-vealed that the EAC cannot expect to speed up regional integration without the cooperation and support of local level organizations and institutions, among these the local governments of the region and their representative associa-tions, the institutions of governance closest to the people. Local governments can be key actors in strengthening the integration process, carrying out civic education, and dissemination on EAC treaties, protocols and policies to the citizens, as well as in implementing growth ini-tiatives.

While the EAC is working to build connections with the local government sector, policies such as the East African Common Market Protocol (CMP), which will have far reaching implica-tions on the region’s local governments (on regulatory frameworks, revenue generation, service provision and trade management)1 have to date been developed without inclusive con-sultation or feedback from the local government sector.

C. Local Government and the East African Community (EAC)

The East Afri-can Community (EAC) recognizes the role of local governments in the deepening and widening of the integration process.

East AfricanCommunity (EAC)

I See report Liviga, Athumani J. et all (2008) “EALGA Study on the Impact of the EAC Common Market Protocol on Local Governments in Partner States”


The adoption of decentralization in the countries of East Africa has been largely as a result of re-alizations that a highly centralized approach to governance has not been effective in delivering good governance, democracy, tackling poverty and building a sustainable development.

The decentralization process has had important impacts on service delivery, local economic de-velopment and citizen well being. However the emergence of new structures has posed a chal-lenge to existing human capital, management systems, financial resources, and coordination at the decentralized levels across the countries of the East African Community.

Solving these problems will include a re-exami-nation of the policy, legal and regulatory frame-work, and institutional arrangement governing the local level, as well as building the capacity of local governments, and increasing their level of autonomy of local governments and support-ing enhanced budgetary allocations to decen-tralization and local government financing.

D. The Challenge

The emergence of new structures has posed a challenge to existing human capital, manage-

ment systems, financial resources,

and coordination

The decentralization process challenges


The process of Decentralization in East Africa

FROMTO

Decentralization is a process, which must be:

• supported by both leaders and the people, • undertaken in participatory and inclusive manner, • responsive to varied local needs, • well-managed in order to remain meaningful and yield desired results.

involvement in decision makingincreased opportunities for participation in decision making

on the lines of accountability

popularly elected local level

local tailored programs and projects


E. Ten recommendations for strengthening Local Governance in the East African Community:


Ten recom-mendations for strengthening local gover-nance

Recommendations

1. Respect the Principals of Decentralization

2. Harmonize legislation

3. Increase Local Autonomy

4. Finance Follows Function

Local decision making is best de-livered by the level of government closes to the people.

Support adopted commitments towards decentralization across all levels of government.

Local governments must be pro-vided with an enabling environ-ment allowing them to meet their responsibilities, and to plan and implement independent local de-velopment plans.

The need to balance expenditu-re responsibilities with revenue sources is central to the perfor-mance, efficiency and effective-ness of local governments.

Currently across East Africa local government incomes are overly reliant on intergovernmen-tal transfers making local gover-nments more accountable to cen-tral government than their local constituency, minimizing their responsiveness to local needs and priorities.

Transfers must be predicta-ble both in terms of timing and amount to allow local govern-ment to provide a continuity of services and implement multi-year development plans.

5. Increase Fiscal Decentralization

6. Ensure Transfer Predictability


8. Build Capacity

9. Recognise LGs as key development actors

10. Strengthen Citizen Participation

Local governments are key actors in organizing the access of citizens to basic services, impro-ving quality of life and meeting the Millennium Development Goals (MDGs) in the local sphe-re.

Local governments are challenged to create po-sitive impact, be outstanding in service provi-sion, and be dynamic institutions that maintain strong relations with their citizens.

Capacity building and human resource deve-lopment must be an integral part of decentra-lization and local governance to ensure local governments can meet their current and future responsibilities towards their communities.

7. Enable Local investment (Access to loans and financial markets)The financing of local and urban investment should be seen as a priority in public expendi-ture policy, and in the allocation of assistance provided by international cooperation.

ADMINISTRATIVE AND FISCAL DESCENTRALIZATION in East AfricaADMINISTRATIVE AND FISCAL DESCENTRALIZATION in East Africa

EA“ This document has been produced with the financial assistance of the European Union. The contents of this document are the sole responsibility of UCLG and EALGA and can under no circumstances be regarded as reflecting the position of the European Union”

administrative and fiscal decentralisation in east africa

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