Counties grew their own source revenue (OSR) collections by Sh2.47 billion in the first three months of the current financial year, helping the units to keep running amid delays in getting cash disbursements from the National Treasury.
This is based on official data from the Controller of Budget (CoB) that shows the 47 devolved units raised Sh12.68 billion in the period, a 24 percent rise from Sh10.21 billion realised in the same period last year.
The increase spared the units from slumping deeper into a cash flow crisis given the delays faced in getting their portion of the billions due to them as equitable share from the National Treasury.
For those growing their revenue at a relatively slower pace, CoB Margaret Nyakang’o said they should set realistic collection targets to ensure they are not forced to disrupt budgets to accommodate the funding shortfalls.
“For County Governments whose OSR performance in the review period is below 15 percent of the annual target, the Controller advises the setting of realistic and attainable targets,” Dr Nyakang’o said in the latest report.
Only five counties collected more than 25 percent of their annual targets, setting them on course to hit the targets by close of the year in June 2025.
Tana River led with OSR collections which were 81 percent of the target, Narok at 60 percent, Samburu (36 percent), Garissa (27 percent) and Elgeyo-Marakwet (26 per cent).
Machakos, Kericho, Kisumu, Bomet, Bungoma, Kajiado and Nyamira were the worst performers with their collections being less than 10 percent of the targets for the full financial year.
Counties faced prolonged delays in getting part of the Sh387.42 billion equitable share after members of National Assembly and senators failed to pass two bills that guide the disbursements.
Dr Nyakang’o added that by the end of September, counties had not received the cash disbursements for July and August.
The Division of Revenue (Amendment) Act, 2024 was signed into law last week, allowing the counties to receive their portion of the equitable share of revenue.
Governors had mid last month threatened to shut down operations at the devolved units, to protest the delays in passage of the revenue sharing law.
Counties mainly depend on the equitable share to run operations like provision of healthcare and also paying salaries. The over-reliance on the cash from the Exchequer is mainly due to below par OSR collections.
