Second Kenya Devolution Support Programme (KDSP II)

The Second Kenya Devolution Support Program (KDSP II) is a nationwide initiative supported by World Bank and aimed at strengthening the capacity of Kenya’s county governments to deliver high-quality public services, manage resources efficiently, and promote inclusive governance. Building on the success of the first phase (KDSP), which concluded in 2021, KDSP II deepens support for devolution by focusing on institutional capacity building and performance-based investments at the county level. The program empowers counties to meet development priorities, improve service delivery in key sectors, and foster greater accountability and citizen participation in governance. At the heart of KDSP II are two primary forms of support:

1. Institutional Grant (Level 1 Grant)

This grant provides counties with funding to enhance governance systems, improve financial management practices, strengthen planning and reporting, and promote transparency. It also supports civic education and efforts to increase public participation in county decision-making processes.

2. Investments Grant (Level 2 Grant)

This is a performance-based grant allocated to counties that meet specific minimum conditions. It funds infrastructure and service delivery projects in priority sectors such as health, water, agriculture, and roads. To qualify, counties must demonstrate sound planning, transparent financial reporting, and adherence to environmental and social safeguards.

Key Goals of KDSP II at the County Level:

1. • Improve delivery of decentralized services
2. • Strengthen accountability and financial management
3. • Promote inclusive public participation
4. • Ensure effective planning, monitoring, and reporting
5. • Support gender mainstreaming and environmental compliance

KDSP II: Summary of Key Result Areas (KRAs)

KRA 1: Strengthening County Financing and Expenditure Management

This area focuses on enhancing the ability of counties to generate and manage funds. Key activities include improving local revenue collection systems, automating financial processes, addressing outstanding bills, and supporting the development of institutional structures such as Single Project Management Units (SPMUs).

KRA 2: Improving Intergovernmental Coordination and Human Resource Management

This component aims to foster stronger collaboration between county and national governments. It promotes better human resource management through activities like HR and payroll audits, aligning staff with service needs, and encouraging performance-based public service delivery.

KRA 3: Enhancing Oversight, Participation, and Accountability

KDSP II emphasises citizen engagement, transparency, and stronger oversight of county projects. Initiatives include forming community project management committees, implementing public investment management (PIM) frameworks, promoting climate-resilient planning, and developing real-time dashboards for investment tracking and citizen feedback.