Fiscal decentralization in kenya – the effect of constituency development fund on primary school enrolment in Kitutu Chache constituency

Abstract

The paper provides empirical analysis of the impact of fiscal decentralization in Kenya through CDF on gross enrolment to standard one in primary schools in Kitutu Chache constituency. Data from 30 public primary schools sampled was taken for period between 1993-2013, representing period prior to and after introduction of CDF. Panel data was used in the analysis that estimated a random effects model. Key observable independent variables primarily the pupil-teacher ratio, class size, number of streams and FPE were controlled for. The results suggest that fiscal decentralization though CDF has no significant effect on standard one enrolment in Kitutu Chache constituency. A further estimation was done to see the effect of CDF on gross enrolment to the entire school and CDF was found to have a positive and significant impact, therefore colloborating the existing theoretical literature on the impact of fiscal decentralization on public goods provision. KEY WORDS: Fiscal decentralization, CDF,Enrolment, Education, Kitutu Chache, Public goods.