Raila: County Govts to face revenue test

Prime Minister Raila Odinga has identified the generation of revenue as the major challenge that county governments will face once they are in place after the next elections.

The PM said that though the devolved units will have avenues to seek help from the national government they had to work towards self-sustenance.

He said that the Constitution provides that county governments should have reliable, stable and predictable sources of revenue to enable them to effectively perform their constitutional functions and to deliver services within their jurisdictions.

Mr Odinga added that devolution would help the government secure its dream of fostering equitable distribution of resources and an even pace of growth and development throughout the nation. He challenged professionals to take up the role of managing the units as a way of promoting effective financial management.

“In promoting good governance and accountability, it is an indisputable necessity that these institutions be empowered and prepared to be of service to county governments as from their nascent stages.

"We must walk together to achieve this dream. As professionals you must take the lead in all ways to ensure that the original spirit that inspired the reforms in not lost,” Mr Odinga said Wednesday in a speech read on his behalf by the Planning minister Wycliffe Oparanya at the 20th Economic Symposium of the Institute of Certified Public Accountants of Kenya (ICPAK) at the Hilton Hotel, Nairobi.

The PM said that said the government is working on various issues regarding public finance in the context of implementation of the devolved government system. He said that the issues being focused on include secure, reliable, stable and predictable county revenues; county borrowing and public debt management; financing cities, urban areas and county public entities; financing county infrastructure; public procurement; financial management and controls among others.

Mr Odinga said that devolution carries the dream of a government that is keen on promoting and protecting the rights of all Kenyans. He thus challenged professionals to take up the role of ensuring the Constitution ushers in a drive for tighter financial regulation and provide a challenging climate for politicians and bureaucrats whose careers have thrived solely on pilfering public funds.

“ICPAK has cemented its growing importance through initiatives that have improved financial reporting, ethics and governance, thereby enhancing corporate performance. These initiatives have flowed into the public sector, which is benefiting through increased financial management practices,” Mr Odinga said.

Mr Odinga said that county governments will be required to observe the principles of public finance outlined in the constitution including “prudent and responsible utilisation of financial resources, openness, accountability, public participation and clear fiscal reporting".

“They must also ensure resources are applied in a manner that promotes equitable development, provides for marginalised groups and areas, and the use of resources and public borrowing, while ensuring the related burdens and benefits are shared equitably between present and future generations,” Mr Odinga said.