[Insight]
Devolution at Twelve: What County Strategy Still Gets Wrong
[Insight]
Devolution at Twelve: What County Strategy Still Gets Wrong

Opening Perspective
Twelve years into devolution, the constitutional argument is settled. The 2010 Constitution created 47 counties. The County Governments Act, the Public Finance Management Act, the Intergovernmental Relations Act, the Urban Areas and Cities Act, and a long supporting catalogue gave devolution its operating manual. Three electoral cycles have passed. The equitable share, the Equalisation Fund, the Senate, the Council of Governors, the Commission on Revenue Allocation, and the Office of the Controller of Budget are all in place. The architecture works.
The strategy practice underneath that architecture does not yet work at the level the Constitution implied. County Integrated Development Plans are produced on cycle. Annual Development Plans are tabled. Budgets pass. The Controller of Budget reports each quarter. None of these in themselves are evidence that strategy is doing the work strategy is supposed to do. Across twelve years and forty seven counties, the same patterns repeat. Plans are aspirational. Budgets are reactive. Own source revenue underperforms. Monitoring and evaluation is the layer that was never built.
Devolution has not failed. It has plateaued. The next decade will be decided less by whether the framework holds and more by whether counties build the operational layer the framework never taught them to build.
Where We Are
The diagnostic on devolution sits in three reliable bodies of evidence. The Office of the Controller of Budget's quarterly and annual reports. The Office of the Auditor General's county audit reports. The Commission on Revenue Allocation's annual outlook documents. Read together over the last decade, they tell a consistent story.
Counties have absorbed responsibility for the Fourth Schedule functions in scope, but execution quality varies widely. Health, agriculture, urban planning, county roads, trade, pre-primary education, and disaster management sit with counties. The variance in how each county delivers across these areas is substantial. Some counties have built credible institutions in specific functions. Most have not built credible institutions across all of them. The unevenness is the headline finding.
On finance, the pattern is also consistent. The equitable share continues to dominate county revenue. Own source revenue collection underperforms potential by a wide margin across most counties. Development budget execution rates frequently lag recurrent execution rates. Pending bills accumulate. Conditional grants flow but with reporting and disbursement delays. The fiscal envelope is constrained but the constraint is mostly composition, not headline allocation.
On planning, every county produces a CIDP. Most produce ADPs. Sector plans exist. Budgets are passed. But the operational link between plan and budget, between budget and execution, and between execution and outcome remains weak in most counties. That is the area where the next decade has to make progress.
CIDPs are treated as documents, not instruments. Tabled, passed, filed. The CIDP should anchor the budget, sequence priorities, and commit to measurable outcomes.

ACAL Advisory Team
Public Sector Advisory Practice
Four Things County Strategy Still Gets Wrong
1. CIDPs are treated as documents, not instruments
The CIDP is the most important strategic instrument a county has. It is the legally required five year plan that should set the trajectory for the budget cycle, the sector plans, and the performance contracting underneath.
In practice, most CIDPs read as inventories of aspirations. They list projects without sequencing them. They list outcomes without costing them. They list partners without specifying terms. They are produced through a participation process that often runs faster than the analysis the process is supposed to inform. They are tabled, they are passed, and they are filed.
The CIDP should be doing four things at once. It should anchor the budget. It should sequence priorities. It should pre-allocate fiscal space. It should commit to measurable outcomes. In counties where it does these things, the budget improves immediately. In counties where it does not, the annual budget process becomes a separate exercise that recreates priorities from scratch every year.
The fix is not legislative. It is methodological. CIDPs need to be built around fiscal envelopes that the county can credibly defend, with outcome targets that the county can credibly measure. Anything beyond that is rhetoric.
2. Counties plan for functions they do not have
The Fourth Schedule of the Constitution divides functions between national and county governments. The list is clear. Counties do not control monetary policy, foreign affairs, national highways, national grid energy, national curriculum, higher education policy, immigration, or national security. They have specific powers in health, agriculture, county roads, urban planning, trade, pre-primary education, and a defined set of other functions.
Many CIDPs blur this line. They include strategic objectives for outcomes the county cannot directly deliver. They commit to investments in functions the county does not control. They cite indicators that depend on national-level decisions. The effect is twofold. Underinvestment in core devolved functions. Overpromise on outcomes that depend on others.
The strongest CIDPs we have seen across our county engagement do the opposite. They are sharply scoped to what the county can deliver. They name partnerships with national entities for where the county influences but does not control. They do not promise outcomes the county cannot deliver. This discipline is what separates credible county strategy from compliance documents.
3. Own source revenue is the missing strategic instrument
County finance has been dominated for twelve years by one figure. The equitable share. Conditional grants matter. Donor finance matters. But the equitable share is the financial centre of gravity for almost every county.
This dominance is itself a strategic vulnerability. Counties that depend on a single revenue source dependent on a national formula have limited fiscal control. They cannot shape their development pace. They are exposed to national fiscal cycles. They cannot price local economic activity in a way that influences it.
Own source revenue is the strategic instrument that closes this gap, and it is the instrument counties have underused most consistently. Property rates collection is a fraction of potential across most counties. The Valuation Roll in many counties is decades out of date. Single business permits are issued without enforcement infrastructure. Market fees are collected informally. Land rates exemptions are negotiated case by case rather than under transparent policy.
Building OSR is not a glamorous reform. It is the most undervalued strategic move available to county leadership. A county that doubles its OSR base over a CIDP cycle has done more for its development pace than any single donor programme can deliver. The technical work is well understood. Updated valuation rolls. Geocoded property registers. Permit issuance and enforcement systems. Transparent rate cards. Predictable collection cycles. None of this requires legislation. It requires sustained operational focus, which most counties have not invested in.
4. Monitoring and evaluation was the layer never built
The CIDP names indicators. The ADP names outcomes. The budget names allocations. The Controller of Budget reports on execution. The Auditor General reports on compliance. None of these together amount to performance management.
Most counties do not have a working M&E system at the standard the framework implies. Sectoral data is collected unevenly. Citizen-facing reporting is patchy. Outcome data lags or does not exist. The instruments that should let a county leadership team know whether the CIDP is delivering, mid-cycle, are usually absent.
The cost is large. Without M&E, course correction is impossible. Without outcome data, citizens cannot hold counties to account. Without performance evidence, donors cannot allocate confidently. Without verification, the difference between high-performing and low-performing counties is hard to substantiate at scale.
This is the most important investment area for the next phase of devolution. M&E is not a side project. It is the layer that turns plan and budget into performance. The counties that build it first will look very different at year fifteen than the counties that do not.
Where Counties Are Getting It Right
The picture is not uniformly difficult. Across the twelve years, a number of counties have built capability that demonstrates the framework can work. The lessons from those counties matter.
First, alignment discipline. The strongest counties run a tight loop between CIDP, ADP, sector plans, and annual budget. The numbers in the budget can be traced to outcomes in the CIDP. The CIDP outcomes can be traced to the constitutional functions and the local development context. Nothing in the budget is detached from the plan. This sounds basic. It is rare.
Second, citizen-facing reporting. The best counties report transparently to their residents on what was budgeted, what was spent, and what was delivered. This is not just compliance with the Public Participation provisions. It is a discipline that improves both performance and political legitimacy.
Third, institutional continuity. The counties that perform consistently do so because they protect the technical layer through political transitions. The County Public Service Board functions as a credible employer. Senior technical positions are filled on merit. Sector heads serve through electoral cycles. Strategy survives changes in leadership.
Fourth, focused OSR build. The counties with the strongest fiscal position have been the ones that invested in OSR infrastructure deliberately. Updated valuation rolls. Geocoded property registers. Permit enforcement. Predictable collection. These counties have more strategic space than the average.
None of these counties have solved devolution. All of them have decided to do the operational work the framework expects but does not enforce. That is the differentiator.

Implications
For National Government
The next phase of devolution support from the national side should be operational, not constitutional. The framework is sufficient. The institutions are in place. What is needed is sustained support to the layer beneath: CIDP methodology, M&E systems, OSR infrastructure, county financial management. The Council of Governors, the Intergovernmental Budget and Economic Council, the CRA, and the Senate all have roles in this. The national capacity building agenda for counties should focus on this operational layer rather than on awareness raising and orientation.
For Counties
The single most consequential decision a county can make in the next CIDP cycle is to commit to operational discipline over headline ambition. Build the CIDP around a credible fiscal envelope. Scope it to functions the county actually has. Anchor it in measurable outcomes. Build the M&E system to track them. Invest in OSR infrastructure. Protect the technical layer through political transitions. None of this is exotic. All of it is undervalued.
For Donors and DFIs
Donor support to counties has tended to run as horizontal programmes spread across multiple counties with similar templates. The next phase should be more vertical. Sustained, county-specific institution building over the full CIDP cycle. Co-located TA with county technical teams. Predictable disbursement. Long horizons. The horizontal model produces visibility. The vertical model produces capability. Both are needed, but the balance has been too heavily in favour of visibility.
For Citizens and Civil Society
The constitutional architecture gives citizens meaningful voice in county affairs through the public participation provisions and through the County Budget and Economic Forums. The voice is underused. Citizen engagement that is structured around the CIDP, the ADP, and the budget cycle is more effective than engagement organised around individual projects. Civil society organisations have a role in supporting citizens to engage at the strategic layer rather than only at the implementation layer.
Closing Perspective
Devolution at twelve looks different from devolution at five. The early concerns about basic institution building have been largely answered. Counties function. Budgets pass. Services are delivered. The Constitution holds. The framework is durable.
The remaining work is not constitutional. It is operational. The strategy-to-budget link. The functions-to-mandate fit. The OSR build. The M&E layer. None of these require new law. All of them require sustained operational focus over multi-year horizons. The counties that invest in this layer will lead the next decade. The counties that wait for someone else to fix it will not.
There is a quiet danger in the current moment. The temptation to treat the operational layer as a technical detail rather than the strategic priority it actually is. The temptation to spend another decade on constitutional debate when the constitutional question has been answered. The temptation to believe that more money or more legislation will fix what is fundamentally an operational problem.
Devolution has not failed. It has plateaued. The work that lifts it from the plateau is unglamorous, operational, and patient. It is also exactly the work the Constitution intended and the framework expects. The counties that commit to that work will be the counties whose residents look at year twenty four and recognise the difference.
ACAL Consulting Africa Limited is a development advisory practice retained by governments, donors, and development finance institutions across East Africa. We work at the intersection of policy, capital, and delivery.
Strategic Insights That Drive Business Success
Strategic Insights That Drive Business Success
Strategic Insights That Drive Business Success



