If there’s one Kenyan fund that has remained hidden from public scrutiny since its inception, then it must be the Local Authority Transfer Fund (LATF). It’s one of the eight operational decentralised funds whose aim is to reduce socio-economic disparities and improve the well being of citizens.
Among the eight are the well-known Constituency Development Fund (CDF) and the Free Primary Education (FPE) established in 2003. The most recent is the Youth Development Fund (YDF) established in 2006. Others are the Secondary School Education Bursary Fund (SEBF), Road Maintenance Levy Fund (RMLF), Rural Electrification Programme Levy Fund (REPLF) and the HIV/AIDS Fund.
However, for the purposes of this forum, I’ll restrict myself to discussing the LATF.
This fund was established in 1999 through the LATF Act No. 8 of 1998, with the objective of improving service delivery, improving financial management, and reducing the outstanding debt of local authorities. LATF, which comprises 5% of the national income tax collection in any year (approx. Ksh 15 Billion in 2006), currently makes up approximately 24% of local authority revenues.
At least 7% of the total fund is shared equally among the country's 175 local authorities (Ksh 1.05 Billion). 60% of the fund is disbursed according to the relative population size of the local authorities (approx. Ksh 9 Billion). This implies that Nairobi receives the highest amounts.
The balance of 33% (approx. Ksh 4.95 Billion) is then shared out based on the relative urban population densities. LATF monies are combined with local authority revenues to implement local priorities. (Source - Kenya Institute of Participatory Policy Research Analysis - KIPPRA).
The whole idea of having funds such as these is based on the belief that government at the local level has a better understanding of community needs, and is more capable of delivering improved, responsive and relevant services.
The question that begs an urgent answer is whether LATF has been able to fulfill this aspiration over the last 8 years.
Low awareness levels
A survey carried out by KIPPRA in 2006, established that LATF was the least known fund in the country. Free primary education was the only fund that recorded consistently high levels of awareness (at over 90%) with Local Authority Transfer Fund being the least visible fund at less than 30%.
Similarly, the Free Primary Education Fund recorded the highest rating for impact, with over 90% reporting a positive impact. Guess what, the fund that was rated as having the least impact is…you guessed it right ….the subject of our blog today.
As a citizen of this country and a taxpayer, I have to say that the picture painted by this survey is simply deplorable. If the leadership at the grass roots level is not able to enlighten community members on the benefit of these funds, then what is their mandate as elected leaders?
My understanding is that LATF funds are given out every year to elected local government officials to finance priority projects within the ward. Unfortunately, the law vests discretionary powers on the Councillors to decide what to do with the funds. Residents are hardly consulted and in fact, most people I’ve talked to regarding these funds are not even aware of their existence.
So, what have Nairobi Councillors and specifically the current Kileleshwa Councillor been doing with these funds? Kileleshwa voters need to start asking these questions because it’s their right to know how money provided on their behalf has been spent in the Ward.
Just to give you an idea of how much money we are talking about, my research has established that Nairobi Councillors receive the highest amount of LATF in the country. This is in the region of Ksh 4M per year to undertake at least one project in the Ward.
As I close this post and open it up to discussion with my fellow Kileleshwa residents and indeed other Nairobi voters, lets take a moment to ponder the words of Hon. Charles Kilonzo of Yatta Constituency.
“I would like to touch on the issue of Local Authority Transfer Fund (LATF) money. The LATF is like a country called Alaska. Everybody knows about it and nobody wants to go there. Why? Because Councillors have taken LATF money to be their pocket money.”
This is taken from the Parliamentary Hansard report of 2nd August 2006.
My fellow Kileleshwa residents, if you give me the mandate of representing your interests at City Hall this year, my first priority will be to establish a ward committee comprising community leaders and officials from residents associations. This committee will determine priority needs that can be met through the LATF funds.
I’m currently moving from court to court discussing this issue and others touching on the welfare of the Ward. Am open to invitations to discuss more civic issues face to face at your courts, residents association meetings or any other forum.
To arrange this, please feel free to write to me at this address: dmuhindi@gmail.com.
Subscribe to:
Post Comments (Atom)
I'll be damned! If this information is accurate, then this is definitely one of the many ways Kenyan tax payers get duped by the people entrusted with their money. This is the year voters should wake up to demand answers from their leaders. Thank you Councillor Muhindi for highlighting this subject.
ReplyDeleteI reside at Riverside in Kile Ward, and work in the development sector. But I must confess that even I did not know so much about this ‘Councillors Pocket Money’ also known as LATF. However, I would want us to shift to blame ourselves for this. One, for continually voting in such low caliber leadership at the civic level, and secondly, after voting them in, letting them do whatever they want with our tax money.
ReplyDeleteFor me the greatest lesson from this post is that we need to focus our lenses on how our councils are run. Its time we changed how we voted, and give equal if not more emphasis to local leadership. I ask myself, ‘what councilor do I want? What qualities does she/he have? Then I go out of my way to ‘weigh’ them, and chose the individual regardless of party. Like they did in Embakasi in the May 2007 by elections. Even his supporting party KPP was surprised by his win! But word on the ground is that this is a very well known and trusted individual on the ground.
Side thought, councilor Dancan, it would be interesting to get a gender analysis of the council, how many of them are female? Where are the young female aspirants for councilor?
Dancan, I've always wondered what happens to these funds. I read somewhere that local authority budgets will now be open to public scrutiny, which is good. We'd also like to know which roads belong to the council, and which to the ministry, and whether we should be paying for refuse collection when it obviously isn't done.
ReplyDeleteI'm not sure how much else you know about the council, Dancan, but you better do lots more research as questions on specific cases, tenders, projects, etc will arise.
I can begin with what you intend to do in the council about traffic. It's a nightmare everywhere, and is costing this economy billions in time wasted and fuel. Parking in the city centre is also a major problem.
Your ideas?
Karago
I am not a Kileleshwa resident but I can tell you that your post has been very enlightening indeed. Kshs. 4 million pocket money??!!! who would have thought! No wonder the fortunes of these 'elected' city council officials change noticeably within a couple of months of going into office. By the way, speaking of offices, do city councillors have offices in their wards where residents can make thier complaints? I have definately never seen one in my ward. Councillor Muhindi, kindly shed some light on this one. I would also suggest to you to keep this blog even after you are elected, that way, residents can reach you from the comfort of their desktops with their various and varied needs. Keep the information rolling, I am definately thinking of changing my vote to your ward before the deadline July 15th is up.
ReplyDeleteThis is great stuff Councilor Dancan! As a female living and working in Nairobi, I commend you for starting this blog and for having the balls to go all out and do this! I received a URL of this particular LATF post from your very supportive sister and I simply had to say something about my ward. I live in Kile just off Othaya road. I am not sure who my current councilor is, and frankly have not bothered to find out, shame on me, however, now that i have a clear picture of what my councilor will look like in the future, i am very excited to find out more. There is a road that connects Dennis Pritt and Kile which can be useable but unpassable unless you are a proud owner of a 4 wheel drive vehicle. If repaired, this road would reduce the traffic jam on Arwings Kodhek which is just horrible in the morning and evening and even during lunch hour. I hope you can work on this as soon as you are in office. You have an uphill task in crambling down the walls of corrupt city council officials once you get there Dancan, and I hope you will not be influenced to adopt their ways. Everyone is out to protect their tuff. One of the reasons why I only vote accompanied by my dad is to avoid violence. That would probably explain why females would not take up this same objective and give it the same zeal and passion as you have. We would rather contribute in other ways such as through our votes (accompanied by a male companion just in case).
ReplyDeleteThanks for all your valuable comments. This interaction is very useful and it can only bring positive changes in the way we manage our country.
ReplyDelete@ Charlie
The gender disparity at the Nairobi City Council makes for depressing reading for the women of Kenya. There's only one elected woman Councillor out of the 55 electoral wards! She's Councillor Janet Wairimu M. Jillani of Mugumo-ini ward in Lang'ata Constituency.
Out of an additional 20 nominated Councillors, seven are women. My interpretation of these statistics is captured well in Shikow's comments above. It's probably violence that keeps women candidates away from civic seats.
The few female aspirants that I've met in Nairobi are all gunning for Parliament, which is even tougher to penetrate. I believe they'd fare better if they cast their sights lower to Councillor level.
@ Flyfishing,
I fully agreee with you that Traffic jams have become a nightmare in town. I can't pretend to have all the answers to this problem for now. However if elected, I would propose the council actively engages actors in the transport industry with a view to streamline and make public transportation convenient and attractive to people with private cars. Lots of people have invested in cars due to the discomfort and uncertainty of public means, hence adding to the congestion.
I believe the Council also has a clear mandate to step in and bring back order and discipline into this vital sector. The transport ministry under Mwakwere has been a total let down in this area.
Bold and urgent solutions might include introducing deliberately high parking fees (say Ksh 300 a day) for cars entering the the CBD. Though unpopular, it can be a very effective method of reducing unnecessary traffic from town.
@ Nairobi resident,
In answer to your query, Councillors do have ward offices funded by the City Council and maintained by two council employees. This idea, under the decentralisation programme, was introduced by the late Local Government Minister Karisa Maitha. The idea was to make Councillors more accessible, provide business permits, licenses and other services at ward level rather than City Hall.
Unfortunately, I've gradually come to learn that many of these local leaders are quite scarce in these offices. I plan to change this culture once am given the mandate by Kileleshwa voters.
Meanwhile, feel free to register in the ward during this month's registration exercise. Every vote counts in the journey to effect positive change.
Jambo Mr.Councillor,hmm, like Alaska huh? I can just imagine to what lengths our leaders go to cultivate ignorance among the masses. Can u imagine how much wealth is generated by a deposit of 4M in an account.......hmm,coz am sure as hell that Opanga dude hasnt started a single project in Kileleshwa, we would have seen it! Anyway,ever the cynic, i have to ask you this, why now? why havent you been more visible in KILELESHWA? You seem to have the vision and atleast an academic background, so am asking...why are you vying for a lowly seat like Councillorship....surely you could go for MP???? whats up with that? whats the catch?
ReplyDeleteThe journey of a thousand miles begins with the 1st step. Is that your thinking Muhindi? We certainly hope so. It would be good to hear from the horse's mouth where he is coming from and where he is going. Include in the same narrative your vision for Kileleshwa.......then you will get my vote, if you persuade me.
ReplyDeleteCouncillors are the peoples representatives. Are you proposing that councillors hold referendums on how to spend the 4m? Has there been a study showing how the 4m has been spent? The answer I believe is to establish an audit system similar to the one proposed for CDF and make the results available to the public.
ReplyDeleteI see where Dancan is going and I would welcome a public official seeking my view on how to spend my own money! As a sitting councilor Dancan, you should attend resident association meetings and gather information and peoples' opinion on how, where and what to spend their money on. When the project is underway as suggested by one of the bloggers, an audit system put in place will ensure that the money is spent wisely and for the purpose intended and for public scrutiny.
ReplyDelete@ Gachugi
ReplyDeleteThanks for visiting and your query.
I've watched the going ons at the City Hall for quite a while now with a lot of dismay. Like many other Kenyans, I was on the sidelines working to make ends meet while complaining about our leaders.
I gradually realised that unless people like me and you acted selflessly to change the quality of our leadership, all the talk about reforms is just hot air.
Why at councillor level and not parliamentary? I believe the grass roots are in more need for urgent reforms. This is where the energy, passion, talents and fresh ideas from young Kenyans is sorely needed to make a difference. After all, charity begins at home.
@Anon 1,
My vision for Kileleshwa is very simple - I would like to see a more visible and responsive civic leadership, that will usher in a professional and open way of handling residents issues, for the benefit of the residents.
Visit again and feel free to use your name :-)
@ Anon 2,
I saw in the local dailies some two weeks ago that a report indicting local authorities on poor service delivery had been released. Am still trying to get hold of it to see whether they've talked about LATF.
Your proposed audit solution is actually the best way on checking the use of LATF. Unfortunately, the act will have to be ammended in Parliament first and I don't see it happening this year.
My proposal if elected Councillor is to deliberately pre-empt the act by forming a consultative committee from representatives of Kileleshwa residents.
As far as I know, residents associations can provide such representatives and may be other actors in the ward. Am open to suggestions on this issue.
Please keep visiting the blog and tell your neighbours about it. The issues we shall cover this year might just change the way Nairobi is governed in future.
Hey Councillor,
ReplyDeleteThis is a fantastic initiative you have here. Keep up the good work and stay the course. A friend recently told me that the LATF allocations are much more than Ksh 4M. He estimated the figures to be Ksh 8-10M per year to every Nairobi Councillor. Please establish the true position on this. It would be great if a sitting councillor actually commented here (well....am just hoping:-)).