Counties can only end the cash flow challenges they are facing by enhancing own source revenue, Kakamega Governor Fernandes Barasa has said.
He urged county governments to explore innovative solutions and partnerships to bolster their financial positions.
“Counties may not be able to sustain essential services due to the ever dwindling financial support from the national government,” Barasa said.
He chairs the finance committee at the Council of Governors.
Barasa, who was addressing staff at the county headquarters on Thursday, said county governments are yet to receive a substantial portion of the allocated budget this financial year.
He said finding alternative sources of revenue is more critical now than ever to ensure smooth functioning of devolved units.
The county chief said devolved units are going to take up the servicing of medical equipment from the national government starting April, meaning they will require more money yet the sharable revenue is shrinking and the wage bill ballooning.
“This is going to add more that Sh300 million for Kakamega county, which was not budgeted for,” Barasa said.
Governors are pushing the Treasury to allocate counties Sh450 billion in the 2024-25 financial year.
In 2023-24, counties received an additional Sh10 billion from the initial Sh370 billion, an increase of 4.2 per cent.
Although the Commission on Revenue Allocation had recommended Sh425 billion, the Bill was shot down at the Senate and counties ended up receiving Sh385 billion as sharable revenue from the National Treasury.