A new report has revealed the best and worst-performing counties in own source revenue collection in the first three months of the fiscal year.
The county expenditure report by Controller of Budget Margaret Nyakang’o ranks Tana River, Narok, Samburu, Garissa and Elgeyo Marakwet as the best performers.
Conversely, Marsabit, Kajiado, Nyamira, Bungoma, Machakos, Kericho, Kisumu and Bomet are the worst against their own targets.
According to the report released on Wednesday, Tana River collected up to 81 per cent of its annual target in the first quarter of the financial year.
Governor Godhana Dhadho’s administration collected Sh78.50 million from a target of Sh96.63 million.
Narok, on the other hand, collected Sh2.98 billion from a target of Sh4.97 billion – a 60 per cent collection rate over the period.
Samburu’s collections stood at 36 per cent (Sh100.85 million from a target of Sh281.63 million), Garissa at 27 per cent (Sh80.46 million from a target of Sh300 million) and Elgeyo Marakwet at 26 per cent (Sh78.70 million from a target of Sh300.78 million).
Other best-performing counties in revenue collection against their targets are Wajir at 23 per cent, Turkana at 21 per cent, Kitui at 19 per cent, Meru at 18 per cent and Kirinyaga at 18 per cent.
Others are Kirinyaga (18 per cent), Makueni (16 per cent), Laikipia (15 per cent), Nakuru (15 per cent), Kakamega, Mombasa and Murang’a at 14 per cent each.
At the bottom of the pyramid, Marsabit, Kajiado and Nyamira performed dismally at nine per cent each.
Marsabit collected Sh33.16 million from a target of Sh356.11 million, Kajiado raised Sh143.9 million from a target of Sh1.57 billion and Nyamira netted Sh70 million out of a target of Sh800 million.
Bungoma, Machakos, and Kericho also performed dismally at eight per cent, Kisumu at seven per cent and Bomet County at six per cent.
Other counties that performed poorly in local revenue collection are Kiambu, Busia and Kwale at 10 per cent each, and Nairobi and Uasin Gishu at 11 per cent each.
Collectively, the county governments generated Sh12.67 billion as own source revenue in the fi rst quarter, achieving just 15 per cent of the annual target of Sh85.22 billion.
“This underperformance has resulted in budget shortfalls, thereby impeding the full execution of planned activities,” the report states.
Nyakang’o recommends to the county governments to strengthen revenue collection mechanisms through improved revenue administration.
“Counties are encouraged to explore innovative methods to broaden the revenue base and minimise revenue leakages,” Nyakang’o states.
Nyakang’o in addition urges the developed units to develop a revenue enhancement action plan (Reap).
All counties must evaluate their revenue potential and aim to achieve it over time. “For county governments whose OSR performance in the review period is below 15 per cent of the annual target, the controller advises the setting of realistic and attainable targets,” the report states.
Further, the country budget boss stated that the targets should be adjusted according to performance during the year through the Supplementary Budget.
“The Controller of Budget advises the county governments to put austerity measures in place to ensure that expenditures and commitments align with the available resources,” the report says.
