The objective of this assignment was to carry out an Institutional Assessment in the 13 Programme Municipal Councils (MCs), Office of the Deputy Prime Minister & Ministry of Local Government (ODPM & MoLG), and the Association of Local Government Authorities of Kenya (ALGAK) with a view to the identification of the institutional strengthening activities to be included in Component 1 of the KMP. The Institutional Assessment of the Programme MCs covered at the following key issues: Human resource structure, Staff retention mechanisms, HR skills and expertise; Management strategic planning, Procedures and management systems, Accountability systems, ICT Systems; Expenditure Assignment, Revenue Assignment, Accounting System, Budgeting System.

Review of fiscal resources and forming a view as to their adequacy and the maximization of the potential; Identification of other potential sources of revenue; Review of budgetary performance in terms of linkages to strategic and annual plans and execution; Review of accounting performance including implementation of the LAIFOMS system and the external, inspection and internal audit reports; Review of the procurement capacity and performance of the LAs; Identification of other capacity shortfalls and the potential strategies to meet them; Preparation of an estimate of the numbers of costs of any rightsizing required under the institutional assessment.