Counties' revenue collection to improve his year, says report
Kisumu Deputy Governor Ruth Odinga (second right) inspects a receipt issued to traders for revenue collection at Holo Market. Economic Review 2016 report says County governments will this year collect Sh22.8 billion more in local revenue than the last financial year. FILE PHOTO | NATION MEDIA GROUP
What you need to know:
- Counties will by the end of this financial year on June 30 have collected Sh56.6 billion from local sources compared to Sh33.8 billion in 2014/15.
- Governors are facing sharp criticism for failure by counties to meet the national average revenue target.
- The county chiefs have also been accused of collecting less revenue compared to the defunct local authorities.
County governments will this year collect Sh22.8 billion more in local revenue than the last financial year.
The devolved units will by the end of this financial year on June 30 have collected Sh56.6 billion from local sources compared to Sh33.8 billion in 2014/15.
This is according to the Economic Survey 2016 released by the Kenya National Bureau of Statistics. It says the projections by the county governments could translate to better service delivery to residents.
Governors are facing sharp criticism for failure by counties to meet the national average revenue target, a situation experts say put strain on the national government to provide top-up funds.
The county chiefs have also been accused of collecting less revenue compared to the defunct local authorities due to their failure to seal corruption loopholes.
For instance, a report by the Institute of Economic Affairs shows that in 2015 only nine of the 47 counties surpassed the Sh718 million target, a threshhold set so as to enable county governments to provide essential services such as health, security and water.
COLLECT SUBSTANTIVE AMOUNTS
“In 2015/16, county governments expect to collect Sh56.6 billion as local revenue compared to Sh33.8 billion collected in 2014/15,” says the survey report.
Nairobi City is set to register the highest collection, of Sh6 billion, followed by Mombasa at Sh2.6 billion, Narok (Sh1.8 billion) and Kiambu (Sh1.5 billion).
Other counties projected to collect substantive amounts include Nyeri, with Sh807 million more, then Kisumu (Sh898 million), Kilifi (953.5 million) and Nakuru (Sh711 million).
Nyandarua will decline by Sh43 million from Sh240.6 million to Sh235 million; then Lamu, at negative Sh11 million, will collect Sh50 million from Sh61 million.
Also on the lower tier are Elgeyo-Marakwet, at Sh21 million more, Baringo (Sh50.3 million) and Kwale (Sh46.1 million).
A report by the Controller of Budgets Agnes Odhiambo on counties’ spending in 2014/15 indicates that less than half of them collected local revenue of above 50 per cent.
The Senate County Public Accounts and Investment Committee, led by the then chairman Boni Khalwale of Kakamega, blamed failure by the devolved units to seal graft loopholes for the reduced revenue collection.
