The government has reassigned responsibility for local council affairs to the Ministry of Finance and Government Companies following the abolition of the Ministry of Cities, Local Government and Public Works.
The move comes as part of a broader cabinet restructuring introduced by President Mohamed Muizzu, which saw several ministerial mandates redistributed to streamline government functions.
Shift in Oversight of Decentralisation
With the dissolution of the Cities Ministry, oversight of decentralisation has now been consolidated under the Finance Ministry. The change has prompted questions over accountability for council-related matters, particularly given the central role previously played by the now-defunct ministry.
Officials have clarified that the Local Government Authority (LGA) will continue to function as the primary institution responsible for supervising local councils, as established under the Decentralisation Act.
Under the revised arrangement, Finance Minister Moosa Zameer will serve as President of the LGA and act as the minister accountable to Parliament on decentralisation matters.
Government Rationale for Change
According to the President, the decision to transfer responsibilities was aimed at aligning functions with ministries best positioned to manage them.
He noted that the Finance Ministry plays a central role in coordinating state affairs, making it a suitable body to oversee decentralised governance while ensuring continuity in administration.
The revised mandate of the Finance Ministry now includes responsibility for shaping and implementing policies related to administrative divisions and decentralised governance.
As a result, all official correspondence and matters previously directed to the Cities Ministry are to be submitted to the Finance Ministry moving forward.
Legal Continuity Assured
Authorities have emphasised that the restructuring does not affect the legal framework governing decentralisation.
The LGA has stated that it will continue to carry out its statutory responsibilities, including monitoring and coordinating council activities nationwide. Provisions under the Decentralisation Act ensure that administrative functions remain uninterrupted, even in the absence of a dedicated ministry.
The authority also retains control over resources and assets linked to council operations, in line with existing legislation.
The Ministry of Cities, Local Government and Public Works was established in 2023 as part of efforts to strengthen coordination between the central government and local councils. While the ministry had been credited by some councils for improving engagement, its functions have now been absorbed into the Finance Ministry as part of the latest restructuring.
