County governments managed to generate Ksh 19.95 billion in own-source revenue during the first half of the 2023/24 fiscal year, ending on December 31, 2023, as reported by the Controller of Budget.
While this figure represents a 3.5% increase compared to the same period in the previous year, where Ksh 13.11 billion was raised, it fell short of the targeted amount by Ksh 20.15 billion. Dr. Margaret Nyakang’o, the Controller of Budget, highlighted that this underperformance hindered the implementation of planned activities due to budget deficits.
For the current fiscal year, the 47 devolved units aim to generate Ksh 80.2 billion as own-source revenue.
Of the total collection for the first half of the year, Ksh 13.55 billion was sourced from ordinary own revenues, while Ksh 6.40 billion came from the Facility Improvement Fund (FIF) or Appropriation in Aid (A-I-A).
The report emphasized a concerning trend of over-reliance on the health sector as the primary revenue source, accounting for Ksh 6.4 billion, or 32.1% of the total own-source revenue. Many counties heavily depended on the FIF to boost their revenues, such as Elgeyo Marakwet, Homa Bay, and Siaya.
Nyeri County led in local revenue collection for the period, achieving Ksh 570.9 million, which is 71.4% of its annual target of Ksh 800 million. Meanwhile, Narok County followed closely with a collection of Ksh 2.9 billion, equivalent to 63.9% of its annual revenue target of Ksh 4.6 billion.
However, some counties struggled to meet their revenue targets, with Mandera, Kakamega, Kajiado, Kericho, Kilifi, and Machakos recording the lowest percentage of local revenue collected against their annual targets.
Dr. Nyankang’o urged counties to develop regulations for implementing the Health Facilities Improvement Financing (FIF) Act 2023, which provides for the financial autonomy of health facilities. Additionally, she advised enhancing the capacity of staff involved in revenue collection and implementing revenue enhancement programs to fully realize own-source revenue potential.
