Local councillors were elected in 1998 at various levels of government, though their responsiveness to the electorate has yet to be tested. Fiscal decentralization has accompanied the decentralization of responsibilities. Subcounties may now retain about two-thirds of the revenue collected within their area. But overall resources remain meagre, and transfers from central government are low and increasingly tied to conditions, leaving little room for local discretion. A 1996 auditor general's report highlights the problem of diversion of funds from development purposes.
Broader reforms are necessary to achieve effective participation by villagers.
Local elites still exercise much influence in determining how funds are used. Many local leaders are held back by illiteracy, lack of knowledge of government procedures and low awareness of their rights.