Local government fiscal reform in developing countries: Lessons from Kenya

Local government fiscal reform is emerging clearly as a major development issue of the 1990s. As central governments of developing countries cut back their budget growth in response to economic reality and donor pressure, many are attempting to tap the underutilized potential of local authorities to help meet rising service demands. Drawing on a case study of the local finance system in Kenya and that country's attempts at reform, the challenging economic, institutional and political issues that must often be confronted in such reform efforts are highlighted.