Introduction

What is devolution in economics?

Devolution is the statutory delegation of powers from the central government of a sovereign state to govern at a subnational level, such as a regional or local level. It is a form of administrative decentralization.

The promulgation of the Constitution of Kenya 2010 was the beginning of the much-needed transformation in the country. The Constitution introduced, among other things, the devolved system of governance whose main aim was to bring services closer to the people. Kenyans voted to decentralize government, ushering in a new era of leadership with 47 governors and their teams taking up the reins of power in newly-created counties. The operationalization of devolution was largely based on ensuring there would be equitable development in each of the regions.

Devolution presented an opportunity for business people to not only concentrate on developing business in the main cities but also opened up opportunity in the rural areas. The devolved functions gave powers to the County governments to create trade and a healthy trading environment.

Body

Devolution has had its impact on business in Kenya. Some of the sectors that are devolved include the following:

• Agriculture
• Health care
• Trade development and regulation
• County transport including county roads, parking and street lighting
• County planning and development services
• Cultural activities, public entertainment and public amenities. Including liquor licensing, betting, museums, racing.
• Firefighting services

Devolution brought many government services closer to the people’s doorstep and with it came many opportunities. Procurement opportunities were now closer to the public and more available. Tenders were made easily accessible and the rise of tender entrepreneurs “tenderpreneurehsip” began . County governments make tenders accessible to the public for services and products needed. Entrepreneurs then bid for the tenders and those who have met all the requirements win the tender. Such tenders provide life-changing opportunities for small or medium enterprises. Due to the rigorous and sophisticated nature of the accountability checks of the private firms by some the counties, the winning firms earn accreditation to be used in sourcing of other tenders.

The collaboration between county governments and the private sector has led to more efficient services to the public, growth of the private sector and more transparency as public procurement opportunities are public advertised.

Access to Government Procurement Opportunities AGPO certification makes 30% of all public tenders available to disadvantaged groups namely youth, women, and persons with disability. Most counties make this a requirement hence providing access to public procurement opportunities to disadvantaged communities.

Conclusion

Devolution is here to stay and with it its new opportunities for entrepreneurs countrywide. There have been a few hiccups in its implementation but with time the kinks and wrinkles will get ironed out. The potential for growth of collaboration between county governments is tremendous. At Uniglobal Business Solutions Limited we pride ourselves in being at the forefront of providing services and products geared towards growth of business through devolution. Our products include AGPO certification, company registration, company compliance, tax compliance, key government body certifications.

We provide you with all tools needed to work with your county government of choice