EGOVERNANCE IN LOCAL AUTHORITIES IN KENYA:

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E-GOVERNANCE IN LOCAL AUTHORITIES IN KENYA

• POLICY AND INSTITUTIONAL ELEMENTS OF
  IMPLEMENTATION

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Paper Authors

• Prof. Timothy Mwololo Waema
• School of Computing and Informatics
• University of Nairobi
• (e-mail waema_at_uonbi.ac.ke)
• Prof. Winnie V. Mitullah
• Institute for Development Studies
• University of Nairobi
• (e-mail wvmitullah_at_swiftkenya.com)

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PAPER FOCUS

• Policy and Administrative Environment in which
  the implementation of Local Authority Integrated
  Financial Operations Management System (LAIFOMS)
  occurred.

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PAPER CONTENT

• Introduction
• Justification for Research
• Importance of ICT in Governance
• E-governance Implementation Context
• Conceptual Framework and Methodology
• Implementation of LAIFOMS and Outcome
• Enablers of LAIFOMS Implementation
• Policy Implications on E-Governance

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INTRODUCTION

• Paper based on LOG-IN Africa research
• Research conducted between March and September
  2007
• Research covered two LAs and examined the LA
  Integrated Financial Operations Management System
  (LAIFOMS)

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JUSTIFICATION FOR RESEARCH

• LAs face a number of challenges
• Financial governance a major challenge
• Financial challenge due to
• poor resource mobilisation and management
• Lack of efficient revenue and expenditure
  documentation and tracking system
• Unpaid land rates and bills
• Corrupt practices and lack of records

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IMPORTANCE OF ICT IN GOVERNANCE

• ICTs are at an infancy stage in Kenya
• ICTs have potential of reversing the trend of
  ineffective governance and improving
  participation, transparency, accountability,
  responsiveness, effectiveness and efficiency
  which are major governance constructs
• Kenya research investigated the potential of ICT
  in improving governance constructs

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E-GOVERNANCE IMPLEMENTATION CONTEXT.

• E-Governance in Kenya
• First national ICT policy approved in 2006
• aims at making government more result oriented,
  efficient and citizen centered
• Redefines the relationship between government and
  citizens
• Empowering citizens through increased and better
  access to govt. services

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E-GOVERNANCE IMPLEMENTATION CONTEXT.

• Currently almost all government Ministries have
  websites
• Websites provide largely static information on
  thematic functions of Government
• Some provide downloadable forms
• Very few LAs have launched websites
• On-line via internet or Short Message Services
  (SMS) on mobile phones has potential
• On-line government job advertisements

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E-GOVERNANCE IMPLEMENTATION CONTEXT.

• ICTs in Local Authorities (LAs) 175LAs
• On-going implementation of LAIFOMS since 1999
• LAIFOMS limited to financial management
• LAIFOMS still to penetrate other aspects and
  engagement with citizens
• Citizens interaction limited to billing and
  payment of bills
• Access to computers and internet limited
• Hope for ICT application lies on mobile phones

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E-GOVERNANCE IMPLEMENTATION CONTEXT.

• Local Governance in Kenya
• LAs face challenges (infrastructure, services,
  resource mobilisation, financial management,
  institutional and legal, human resource and
  managing growth)
• Review of Constitution and LA Act
• Devolved funds (LATF/LASDAP, CDF, CBF, RMLF)

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E-GOVERNANCE IMPLEMENTATION CONTEXT.

• Overview of LAIFOMS
• A computer based system that integrates financial
  and business transactions in LAs
• Implementation began in 1999 with 8 LAs
• Second phase brought in 18 LAs
• Currently running on third Phase with 26 LAs
• The only e-government initiative in LAs

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E-GOVERNANCE IMPLEMENTATION CONTEXT.

• Overview of LAIFOMS cont.
• System has three main components
• Revenue
• Budgeting
• Financial Management and Expenditure
• Part of the Public Sector Reform Programme
  focusing on improvement of financial management
  in LAs under the KLGRP.

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CONCEPTUAL FRAMEWORK

• ICT and local governance is a new research area
  with no common conceptual framework
• LOG-IN assessing good governance constructs and
  developing a roadmap
• LAs an appropriate ground for application of ICT
  since are central in service provision
• Relevant to understand how ICT is used for
  improving operations of LAs
• Use of ICT in LAs confined to secretarial and
  accounting

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METHODOLOGY

• Secondary and primary information used
• Survey, Key Informants, FGDs
• Clustered random sampling for consumers
• Purposive sampling for LA personnel
• 203 consumers and 66 LA personnel interviewed in
  2 LAs
• Documentary research, mining LA files, government
  data bases and academic publications

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IMPLEMENTATION OF LAIFOMS AND OUTCOME

• Incremental Approach
• Began with 8, followed by 11 and 26 LAs
• 11 LAs at different levels
• 26 LAs launched in 2006/07 are still to fully
  roll out the system
• Roll out and implementation facilitated by the
  on-going Local Govt. Reforms (LGR)

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IMPLEMENTATION OF LAIFOMS AND OUTCOME

• Local Government Reforms aims at
• Improving service delivery
• Enhancing economic governance
• Improving LA financial management and revenue
  mobilisation
• Use of LAIFOMS in 8 LAs for all financial
  management, including billing and collection of
  all revenues, payroll processing

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IMPLEMENTATION OF LAIFOMS AND OUTCOME

• Effect of LAIFOMS on Good Governance
• Ground breaking for enhancing governance and
  accountability
• Improved responsiveness to consumers through
  access to financial information
• Drastic reduction of complaints by consumers on
  wrong and delayed billing

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IMPLEMENTATION OF LAIFOMS AND OUTCOME CONT.

• Effect of LAIFOMS on Good Governance
• All payments accompanied by receipts
• Clear procedures for issuance of business permits
  (transparency)
• Easy tracking of business permits (transp.)
• Exact count of properties with unique identity
• Revenue collection monitored and payments tracked
  (transparency)

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EFFECT OF LAIFOMS ON GOOD GOVERNANCE CONSTRUCTS

• Effect of LAIFOMS on Good Governance
• Limited effect on participation LASDAP
• Computerisation has improved efficiency and
  effectiveness improvement of services and
  performance in mobilisation of resources
  planning budgeting processing bills billing
  and record keeping
• Change in governance constructs after LAIFOMS
  implementation

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ENABLERS OF LAIFOMS IMPLEMENTATION

• Policy Environment
• Commission of inquiry on LAs in 1995
• 1997/98 1998/99 National budget speech
• KLGRP (service delivery and finances)
• MLG Strategic Plan (2004/09) Institutionalising
  ICTs in LAs by develop. ICT policy and supporting
  ICT implementation
• April 2008 tender for dev. ICT strategy

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ENABLERS OF LAIFOMS IMPLEMENTATION

• Local Leadership
• Commitment of leadership crucial
• Support of MLG LAIFOMS team
• Support of Central Govt.
• LA leadership committed to LAIFOMS
  (Implementation is as good as the Town Clerk and
  the Treasurer)

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ENABLERS OF LAIFOMS IMPLEMENTATION

• Financial Resources
• Budget for ICT investment and recurrent costs
• LAIFOMS budgets in excess of Ksh. 50m
  (US714,285) initial budget of Ksh. 2.5m (US
  35,714) - not viable for small councils
• Viability of 10 LAIFOMS modules for 175 LAs
• Funding by development partners
• 2007/08 Government Budget of 10m (142,857)

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ENABLERS OF LAIFOMS IMPLEMENTATION CONT.

• Human Resources
• LAs in geographical clusters to facilitate
  technical support by LAIFOMS team
• LAs required to hire full time ICT personnel to
  show commitment
• Larger LAs to provide bureau services to smaller
  LAs located nearby
• Personnel a major limitation funded by
  Development partners

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POLICY IMPLICATIONS ON E-LOCAL GOVERNANCE

• Enabling Policy and Strategy Context
• LAIFOMS was successful without an explicit
  e-governance strategy
• Multiplicity of governance initiatives provide
  the drive for LAIFOMS
• Explicit Ministerial ICT strategy, with e-local
  governance initiatives linked to strategy would
  have enhanced implementation

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POLICY IMPLICATIONS ON E-LOCAL GOVERNANCE
Recommendation 1

• The Ministry of Local Government develops an
  e-governance strategy, aligned to the national
  ICT policy, public service reform and Vision 2030
• E-governance Strategy be cascaded to LAs to
  provide guidance to e-governance initiatives at
  the LA level

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POLICY IMPLICATIONS ON E-LOCAL GOVERNANCE
Recommendation 2

• Project Planning
• -Need to have project plans, with explicit
  outcomes, performance indicators and targets that
  are time-bound
• -Plans should include how e-governance projects
  would provide information and services to
  citizens and businesses and contribute to social
  development and local economic development

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POLICY IMPLICATIONS ON E-LOCAL GOVERNANCE
Recommendation 3

• Championship and Leadership
• - Need for committed local champions with
  knowledge and capacity to mobilise resources,
  plan and manage e-government.

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POLICY IMPLICATIONS ON E-LOCAL GOVERNANCE
Recommendation 4

• Human Capacity implementation of LAIFOMS relied
  on LAIFOMS team at the MLG which cannot ensure
  sustainability
• - Need to build capacity at both the MLG and LAs
  in order to ensure sustainability of e-local
  governance initiatives
• - Increase awareness of the potential and actual
  impact of ICT among senior LA officials

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POLICY IMPLICATIONS ON E-LOCAL GOVERNANCE
Recommendation 5

• Financial Resources Roll out of LAIFOMS require
  substantial investment and recurrent budget
• - Need to increase financial allocation for ICT
  at both the national and LAs levels the
  resources should come from both central
  government and local LA resources
• - LAs to allocate substantial proportion of
  revenues to ICTs to reap good governance outcomes
  from e-governance projects