Intergovernmental fiscal systems and self-rule: A Kenyan case study

Abstract

The conferment of self-rule or autonomy to subnational governments is incomplete without the corresponding conferment of the financial means and discretion necessary to facilitate the exercise of such autonomy. This makes the design of a devolved state’s intergovernmental fiscal system and its implementation central to the realisation of subnational autonomy. To facilitate the subnational exercise of autonomy, therefore, an intergovernmental fiscal system needs to be designed in such a manner as to extend and allow the accountable exercise of fiscal autonomy by subnational governments. This entails the accountable exercise of expenditure, revenue and budgetary autonomy.