Counties must enhance own-revenue collection
Ardent critics of the 47 counties often cite their heavy reliance on the National Treasury to fund their operations. Many disparagingly point out that nothing much happens in these regional administrations until their share of national revenue allocation arrives. Indeed, queries have been raised about their viability.
Some people want all the current counties collapsed into the former eight provinces, which, they believe, will be more effective units to run. However, the counties, which were created in 2013, have gained popularity for the development of infrastructure, health and education facilities.
A new development that augurs well for the counties is the creation of their own revenue sources. Four counties, namely Nairobi, Narok, Kiambu, and Mombasa, have realised an impressive increase in their own-source revenue collection in the first half of the current financial year.
According to the Office of the Controller of Budget, these four devolved units collected Sh9.9 billion in the six-month period as all the 47 devolved units raked in Sh19.9 billion. This is the highest revenue through their own sources since the beginning of devolution over 10 years ago.
And yet this has come at a time when the devolved units are facing criticism for underperformance, mismanagement and theft of funds. The counties, which have been leaning heavily on the national government for funds, recorded a 52 per cent growth in own revenue compared to the first half of 2022/23, when the figure stood at Sh13.1 billion.
Nairobi, the biggest county by contribution to the GDP and population, increased its own revenue source collections to Sh3.69 billion in the same period, up from Sh2.6 billion. The own-source revenue is an area that is quite promising and needs to be harnessed.
It is, however, disappointing that the counties spent 24.8 billion on development or only 14.7 per cent of their total expenditure. The lion’s share went to personnel emoluments at Sh98.1 billion or 58 per cent of the Sh158.5 billion spent in the half-year.
The counties have recorded remarkable progress despite the tough economic times. However, they must boost their own revenue sources and enhance financial management to curb blatant theft, corruption and wastage to achieve their desired goals.
