1.2: Address devolution funding needs
The Authority continues to undertake targeted engagements with various public agencies at the National and County level. In December 2016 there was development of the county ABS policy and there has been progress on its consideration by CMMP-NSC and current submission to AG for legal opinion.The Authority developed a high-level policy paper on securitization for counties that was shared with the National Treasury and considered by CMMP - National Steering Committee on 8 November 2016. The CMMP-NSC guided that a legal opinion from the AG is required on the counties overall legal capacity to issue county project bonds prior to circulation of the paper to the Council of Governors. Additionally, the Authority submitted the request for a legal opinion for the provision on the use of SPVs in securitization processes for county governments. The Authority is engaging the AG on the same. The following counties have been visited from 2014 till March 2019: Bomet, Busia, Bungoma Embu, Eldoret, Garissa, Homabay, Isiolo, Kajiado, Kakamega, Kericho, Kiambu, Kilifi, Kirinyaga, Kitui, Kisii, Kisumu, Kwale, Laikipia, Meru, Mombasa,Murang'a, Nairobi, Nakuru, Narok, Nyahururu, Nyeri, Siaya, Taita Taveta, Uasin Gishu.The Authority has a newly adopted Investor Education Awareness Strategy that includes specific programs targeting the Counties through strategic partnerships and intermediary empowerment through a train the trainer program. An Action Plan from the strategy is awaiting development.
The Legal review report from consultant conducting the funding gap study was reviewed by Working Group One in February 2018. The legal report sought to identify the gaps and/or the impediments within the legal framework that would limit County Governments and State-Owned Enterprises from accessing market-based financing.Development of guidelines facilitating county financing to be advanced by June 2019 in line with provisions of the new strategic plan 2018-2023.The capital markets county borrowing checklist is being developed by the WG1 with representation from the International Finance Corporation, the Commission on Revenue Allocation, the National Treasury, the Nairobi Securities Exchange, and I&M Burbidge Capital.