NAIROBI, Kenya Feb 10 – The State Department for Devolution has released Ksh1.67 billion in conditional grants to all 47 counties, marking a significant step in strengthening counties’ institutional capacity and service delivery under the Second Kenya Devolution Support Program (KDSP II).
KDSP II is a four- year program funded by the Government of Kenya with support from the World Bank. The program is coordinated by the State Department for Devolution and implemented by 18 Ministries, Departments, and Agencies (MDA’s) and the 47 County Governments.
The program development objective is to strengthen county performance in the financing, management, coordination, and accountability for resources.
Under the disbursed Level 1 Grant, each of the 47 Counties received a total of 35.25 million Shillings. The Institutional Strengthening Grant is a conditional grant designed to support county governments in undertaking core institutional reforms.
Speaking from his office, Devolution Principal Secretary Michael Lenasalon, hailed the funding disbursement as a critical achievement for the program since its launch.
“Distributing the first round of KDSP II funds is a key milestone that enables counties to start their scheduled reform projects. The funds disbursed are part of level 1 Grants captured in Fy 2025/26 Budget estimates,” added the PS.
Under the KDSPII programme, Counties will use Level 1 Grants to finance Capacity Building and Institutional Strengthening activities according to their approved County KDSPII Institutional Strengthening Work Plan.
“The programme financing agreement and appraisal document outlines some of the eligible and ineligible expenditures as far as the use of the Level 1 Grant and future grants are concerned.”
“Under the KDSPII Program, Level 1 Grants are intended to strengthen a county’s ability to manage its resources effectively, ensuring they have the governance and financial systems required for high-level service delivery” said the PS.
Under the programme , for counties to receive Level 1 funding, each must demonstrate basic compliance with the program’s operational manual, including signing a participation agreement with the State Department for Devolution, establishing core program governance units, such as the County Programme Steering Committee (CPSC) and County Project Implementation Unit (CPIU) and integrating the grant into the official Annual Development Plan (ADP) and county budget.
The PS further adds that in the next annual performance assessment, counties will be assessed on the time taken to transfer received funds (grants) from the County Revenue Fund Account to Special Purpose Accounts.
According to the PS, the primary objective of the level 1 grants is to “incentivize core institutional reforms” in Counties and finance the internal capacity building necessary to unlock Level 2 Governance and Service Delivery Grants
The PS further expounds, “Level 2 Governance and Service Delivery Grants will facilitate development of local infrastructure and enhance service delivery in counties.”
The Second Kenya Devolution Support Program (KDSP II) builds on the foundations laid by the first phase of the program implemented between 2016–2021.
KDSP II National Program Coordinator Samuel Nyaga stated that the program is ready to support counties as they begin spending their disbursed grants according to approved work-plans.
“At the program coordination unit, we are ready to provide the right support to Counties to ensure they adhere to the expected standards as far as utilization of the disbursed funds is concerned.’ Said Nyaga
The KDSPII program has a total approved funding of approximately 1.4 Million Euros.
