Do Fiscal Transfers Foster Regional Economic Growth?

Abstract Fiscal transfer development across the world today has been in part driven by assertions of a supposed ‘economic dividend’ linked with devolved financial spending. There is, however, little empirical evidence to validate these Kenya. It is against this background that study was carried out estimate end product fiscal on regional economic growth Kenya using secondary panel data set. Using ARDL estimation technique long -run and error correction estimates model were generated. The findings revealed increased recurrent budgets accelerates growth, hence confirming Keynesian hypothesis. Conversely, capital expenditure insignificant. This recommends need for policymakers put place policies strategies will improve budget allocation execution so as physical infrastructure thus boost private productivity consequently income growth.