Counties to miss own source revenue targets, have collected only 51%

County governments will once again miss their own source revenue targets, which could hurt development and operations.

The latest budget implementation review report for the counties for the first nine months of the financial year shows that they have collected only 51 per cent of their annual targets.

The report by Controller of Budget Margaret Nyakang’o reveals that the devolved units have collected Sh41.40 billion out of an annual target of Sh80.78 billion over the period.

This implies that the counties may not realise their targets for the remaining period to the end of the financial year.

“The underperformance of own source revenue collection implies that the counties could not implement some planned activities due to budget deficits,” the report states.

However, the collection is an improvement from Sh28.77 billion generated in a similar period in 2022-23. 

Counties with the lowest proportion of own source revenue against targets were Kericho at 30.8 per cent, Nyandarua at 27.1 per cent, Machakos at 26.3 per cent, and Lamu at 20.7 per cent of the annual target.

The report shows that Kericho had set a target of generating Sh1.2billion  but in the last nine months has only managed to collect Sh392.3million.

Nyandarua had set its sights on collecting Sh1.2 billion but has only managed to collect Sh332.5 million.

Machakos was to collect Sh4 billion but has only managed Sh1 billion while Lamu was to collect Sh350 million but has only collected Sh72.6 million.

In total, 16 counties reported below 50 per cent performance of their annual targets.

Others are Mandera, Bungoma, Homa Bay, Kakamega, Busia, Kisumu, Nyamira, Kiambu, Laikipia, Kisii, Taita-Taveta, Nairobi, Kilifi, Bomet, Kwale and Kajiado.

“The Controller of Budget advises the county governments that recorded performance below 50 per cent of their annual target to control budget commitments to avoid accumulating pending bills in the coming financial year,” Nyakang’o notes in the report.

The report lists Uasin Gishu, Samburu, Isiolo, Kirinyaga, Turkana, Nandi, Vihiga, Meru, Wajir, Narok, Nyeri, and Elgeyo-Marakwet as the best performers.

They have collected more than 75 per cent of their annual targets.

Uasin Gishu had set a target of Sh1.17 billion and has so far collected Sh1 billion. Samburu has collected Sh232.2 million from a target of Sh256 million.

Isiolo county has generated Sh237.6 million from a target of Sh271.2 million while Kirinyaga has managed to raise Sh472.8 million from a target of Sh550 million.

The report further shows that Kakamega set a target of Sh2.2 billion and has so far collected 974.4 million. Kiambu has so far collected Sh3.35 billion from a target of Sh7.9 billion.

Kajiado has collected Sh729 million from a target of Sh1.51 billion. Homa Bay has raised Sh927 million from a Sh2.3 billion target while Kisumu, which had set a target of Sh2.2 billion, has so far managed Sh942.7 million.

“The county governments should control budget commitments to ensure that procurement is within the available cash flow to avoid the accumulation of pending bills,” Nyakang’o says in the report.