Deputy President Kithure Kindiki during a church service in Navakholo, Kakamega County on Sunday, December 8, 2024.
A new report from the Controller of Budget, Margaret Nyakang’o, reveals striking disparities in county revenue collection during the first quarter of the fiscal year. While some counties are excelling, others are falling far short of their targets, raising concerns about fiscal management and the ability to deliver services at the local level.
Tana River Leads the Pack, But Many Counties Face a Shortfall
Tana River has emerged as the standout performer in own source revenue (OSR) collection, achieving an impressive 81% of its annual target in the first three months of the fiscal year. Under the leadership of Governor Godhana Dhadho, the county collected Sh78.5 million, surpassing its target of Sh96.63 million. Other top-performing counties include Narok, Samburu, Garissa, and Elgeyo Marakwet, which all exceeded their targets for the period.
- Narok raised Sh2.98 billion, reaching 60% of its annual target of Sh4.97 billion.
- Samburu collected Sh100.85 million, or 36% of its target of Sh281.63 million.
- Garissa achieved 27% of its target, collecting Sh80.46 million from a goal of Sh300 million.
- Elgeyo Marakwet performed at 26%, collecting Sh78.7 million against a target of Sh300.78 million.
In addition, counties such as Wajir, Turkana, Kitui, Meru, and Kirinyaga also performed reasonably well, with Wajir hitting 23%, Turkana 21%, and Kitui 19% of their targets. Meru and Kirinyaga both reached 18%.
A Struggle for Many Counties: Marsabit, Kajiado, Nyamira, and More
While some counties excelled, others faced significant challenges in meeting their revenue targets. Marsabit, Kajiado, and Nyamira recorded the worst performances, with each county reaching just 9% of its target.
- Marsabit raised only Sh33.16 million, falling far short of its target of Sh356.11 million.
- Kajiado collected Sh143.9 million, a mere 9% of its target of Sh1.57 billion.
- Nyamira achieved Sh70 million, just 9% of its target of Sh800 million.
Other counties with dismal performance included Bungoma, Machakos, Kericho, Kisumu, and Bomet, all of which collected between 6% and 8% of their targets. For instance, Bungoma collected just 8% (Sh24 million from a target of Sh300 million), while Machakos and Kericho recorded similar underperformance.
The report does not specifically mention Migori County in its rankings or details. However, it focuses on the counties with the highest and lowest revenue collection rates during the first quarter of the fiscal year.
Migori’s performance would likely fall into the broader group of counties whose performance was either above or below the average, depending on their revenue collections.
General Trends and Underperformance Across the Country
In total, county governments raised just Sh12.67 billion in OSR during the first quarter, achieving only 15% of the annual target of Sh85.22 billion. This underperformance has resulted in significant budget shortfalls, which are likely to impede the execution of planned activities and projects at the county level.
Controller of Budget’s Recommendations for Improvement
The Controller of Budget has recommended urgent measures to address the challenges in revenue collection. Margaret Nyakang’o urges counties to strengthen their revenue administration systems, explore innovative methods to expand the revenue base, and reduce leakages.
She has also called for the development of Revenue Enhancement Action Plans (REAP) in all counties, to guide their efforts to increase local revenue generation. Furthermore, Nyakang’o emphasized the need for counties to continuously evaluate their revenue potential and revise targets as necessary to ensure they are realistic and achievable.
“For counties whose OSR performance is below 15% of the annual target, it is essential to set realistic and attainable goals,” Nyakang’o said. She further recommended adjusting the targets through the Supplementary Budget, depending on performance throughout the year.
In addition to improving revenue generation, the Controller of Budget urged counties to implement austerity measures to align expenditures and commitments with available resources. This, she stated, will help ensure that fiscal resources are used efficiently and that counties can continue to provide essential services to their residents.
Conclusion
The report highlights a significant gap between high-performing and struggling counties in revenue collection, which has implications for local governance and development. The Controller of Budget’s recommendations stress the importance of better fiscal management, targeted revenue strategies, and prudent spending to meet targets and avoid financial crises.
By taking action to improve revenue collection and budgeting practices, county governments can ensure that they meet their fiscal goals and deliver on their promises to local communities.
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