Effect of devolved system of governance on economic development in Bungoma County, Kenya

Abstract

Economic development in Kenya is undermined by corruption, poor economic policies and political instability. Kenya is among the countries in the world with highest inequality in income distribution with a significantly low proportion of Kenyans able to access to healthcare and education. This is despite the devolution of government functions that was meant to ensure that the delivery of public services to the people by the government is well coordinated and efficient. Majority of Kenyans are living in poverty. It is on the basis of this purview that the study sought to determine the effect of devolution of government functions on economic development in Bungoma county, Kenya. The specific objectives were to determine the effect of devolution of agriculture, education, health, trade, transport and water functions on economic development in Bungoma county, Kenya. The study was anchored on the theory of fiscal decentralization, the new growth theory and the theory of balanced growth. This study adopted both descriptive and explanatory research designs. The study population was 9 sub counties in Bungoma county. The sample size was 54 observations, comprising nine cross-sections (sub counties) for the period 2013 to 2018. Data was collected using secondary data sheets. The study adopted both descriptive and inferential statistical techniques to analyze the data collected. The multiple regression cross-section fixed effects model was used to analyze the panel data. The results were as follows; devolution of government functions has a strong relationship with economic development in Bungoma County, Kenya (R 2 = 0.913511), number of farmers supported per year has a negative but insignificant effect on human poverty index in Bungoma county, Kenya (β 1 = -0.000100, p > 0.05), the number of ECDE teachers/VTC instructors recruited negatively and insignificantly affects human poverty index in Bungoma county, Kenya (β 2 = -2.63E-05, p > 0.05), the number of medical practitioners recruited positively and insignificantly affects human poverty index in Bungoma county, Kenya (β 3 = 0.000209, p > 0.05), the number of stalls negatively and significantly affects human poverty index in Bungoma county, Kenya (β 4 = -0.000812, p < 0.05), the kilometres of access roads opened negatively and insignificantly affects human poverty index in Bungoma county, Kenya (β 5 = -3.86E-05, p > 0.05) and the number of water connections positively and insignificantly affects human poverty index in Bungoma county, Kenya (β 6 = 1.04E-06, p > 0.05). The study concluded that devolution of trade function positively and significantly affects economic development in Bungoma county, Kenya. Devolution of agriculture, education and transport functions positively and insignificantly affects economic development in Bungoma county, Kenya. Devolution of health and water functions negatively and insignificantly affects economic development in Bungoma county, Kenya.The study recommended that the government should allocate more funds to strengthen devolved trade, agriculture, education and transport functions in order to realize economic benefits. Moreover, the study recommends that the devolved health and water functions need to be strengthened to ensure that significant benefits are realized. The study is expected to assist the government and policy makers in allocation of public resources in the current era of devolution in Kenya.