1.1: Stimulate devolved domestic prosperity
In May 2017, the Authority engaged a consultant through the Financial Sector Support Programme (FSSP) to undertake the study.
The Key activities are as follows;
The Working Group reviewed the legal report, examining the relevant laws and regulations that would otherwise impede the access of capital market funding by County Governments and State-Owned Enterprises, that was submitted by the consultant in February 2018.
The consultant submitted a final draft report in December 2018 that was exposed to a stakeholder forum for a discussion on the key policy issues emanating from the recommendations in the report. The report was then submitted to the National Treasury for comments. The Authority incorporated these comments and resubmitted the report the National Treasury for concurrence ahead of the National Validation Workshop.
In the financial year 2019/20, the Authority was co-opted into an inter-agency committee comprising of the Kenya Cities Forum (Consortium of the 5 Kenyan Cities – Nairobi, Mombasa, Nakuru, Eldoret and Kisumu) Ministry of Devolution, State Department of Urban, CRA etc through which an interagency paper was developed modelling market-based financing as a solution towards funding development projects of County Governments. However, the objective of having a national conference on city financing was re-scheduled following the COVID-19 pandemic.
The same has, however, been included as part of the road map towards pilot issuance to be spearheaded in conjunction with Commission on Revenue Allocation in the incoming financial year. A white paper on financing county development projects through market-based mechanisms has also been developed in consultation with the Commission on Revenue Allocation. The white paper is aimed at feeding into the technical work feeding into the planned road map towards actualizing a pilot issuance in the financial year 2020/21.