Kenya's new constitution marks acritical juncture in the nation's history. It is widelyperceived, by Kenyans from all walks of life, as a newbeginning. Indeed, many feel that post- independence Kenyahas been characterized by centralization of political andeconomic power in the hands of a few, resulting in an unevenand unfair distribution of resources and correspondingaccess to social services; the opposite of an inclusivestate. Born of the political opportunity created by the 2008post-election violence, the constitution finally adopted,after almost a decade of unsuccessful reform attempts,presages far-reaching changes. Its vision encompasses adramatic transformation of the Kenyan state through newaccountable and transparent institutions, inclusiveapproaches to government and a firm focus on equitableservice delivery for all Kenyans through the newlyestablished county governments. Devolution is at the heartof the new constitution and a key vehicle for addressingspatial inequities. A more decentralized government makeseminent sense, given Kenya's diversity and experiencewith political use of central power. Decentralization hasbeen increasingly seen and adopted worldwide as a guaranteeagainst discretionary use of power by central elites as wellas a way to enhance the efficiency of social serviceprovision, by allowing for a closer match between publicpolicies and the desires and needs of local constituencies.Kenya's constitution entrenches devolved government byguaranteeing a minimum unconditional transfer to countiesunder the new dispensation. The devolution train has alreadyleft the station: the challenge is to make sure it arrivesat destination, safely and on time. The politics ofdevolution explain the high intensity of hopes andexpectations that have been pinned to it. It also meansthere are high risks if they are disappointed. There aregreat opportunities and enormous challenges waiting forKenya, in a critical election year, which will determine thefate of the country, politically and economically for yearsto come. This report takes a snapshot look at the criticalissues facing Kenya's policy makers today. It does notargue for or against devolution (a decision that belongssolely to Kenyans), but presents suggestions andrecommendations on how best to navigate the tough choicesahead. It's main focus in on helping Kenya manage adelicate transition.