Formal and informal systems may be linked because their funding may come from the same source, such as a government ministry. For example, in Kenya, the government funds the formal state judiciary but, under a constitutional provision, also provides some funding to the Khadis courts. The Khadis courts are a hybrid justice mechanism for Kenya’s Muslim community, though they do not apply sharia law, and were created out of an agreement at the time of Kenya’s independence (Wagner, 2010).

Shared funding sources may result in less vigorous performance within the informal sector. If yearly programme funding is seen to be dependent upon the nature of relations between the sectors, there may be a reluctance to challenge the efficacy of formal systems and to press for procedural change.

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