Kenya needs to monitor funds

NAIROBI – Kenya needs to ensure proper monitoring is in place of funds for local constituencies and health services if the poor are to benefit, World Bank chief economist Francois Bourguignon said yesterday.

Battling unpopularity as it heads towards a 2007 election, the Kenyan government raised the amount for Constituency Development Funds (CDFs) to 10 billion shillings this fiscal year from 7,2 billion previously, in what analysts say is a bid to woo voters. On a four-day trip to Kenya, Bourguignon said “proper monitoring and accountability mechanisms” were needed to ensure that the funds went to sectors that are priorities for the poor.”Otherwise, there is a high risk that funds will be captured by elites and that projects are not technically sound and sustainable,” he said in a statement.The CDFs are designed to pay for community projects including providing tap water and repairing dilapidated roads.Under the initiative, the money is administered by the local member of parliament and a committee overseen by the MP.But, local media have reported that most Kenyans believe the CDFs are widely mismanaged, citing a poll by the Kenya Institute for Public Policy Research.Most lawmakers had called for more than double the new allocation of CDFs.Despite three straight years of economic growth, Kenya’s income disparity is widening and the number of people living on less than US$1 a day continues to grow, donors and aid agencies say.Although Bourguignon praised free primary school education introduced by President Mwai Kibaki’s government, he noted that the east African country still had to improve its health services, with the help of donor aid.Finance Minister Amos Kimunya said the government had not factored in direct budget support due to uncertainty about its disbursement.Kenya’s economy grew 5,8 per cent in 2005 compared with 4,9 per cent in the previous year, and the government forecasts growth of at least 5,5 per cent in 2006.- Nampa-ReutersOn a four-day trip to Kenya, Bourguignon said “proper monitoring and accountability mechanisms” were needed to ensure that the funds went to sectors that are priorities for the poor.”Otherwise, there is a high risk that funds will be captured by elites and that projects are not technically sound and sustainable,” he said in a statement.The CDFs are designed to pay for community projects including providing tap water and repairing dilapidated roads.Under the initiative, the money is administered by the local member of parliament and a committee overseen by the MP.But, local media have reported that most Kenyans believe the CDFs are widely mismanaged, citing a poll by the Kenya Institute for Public Policy Research.Most lawmakers had called for more than double the new allocation of CDFs.Despite three straight years of economic growth, Kenya’s income disparity is widening and the number of people living on less than US$1 a day continues to grow, donors and aid agencies say.Although Bourguignon praised free primary school education introduced by President Mwai Kibaki’s government, he noted that the east African country still had to improve its health services, with the help of donor aid.Finance Minister Amos Kimunya said the government had not factored in direct budget support due to uncertainty about its disbursement.Kenya’s economy grew 5,8 per cent in 2005 compared with 4,9 per cent in the previous year, and the government forecasts growth of at least 5,5 per cent in 2006.- Nampa-Reuters