Kenya’s devolved units recorded a 43.9 per cent increase in own revenue sources in the first nine months of the FY 2023/24 compared to similar period in the last financial year.
The county governments generated Kshs 41.40 billion from their own revenue sources, which accounted for 51.3 per cent of the annual own revenue target of Kshs. 80.78 billion.Uasin Gishu, Samburu, Isiolo, Kirinyaga, Turkana, and Nandi achieved higher percentages of own revenue collection at 92.5 per cent, 90.7 per cent, 87.6 per cent, 86 per cent, 81.6 per cent and 81.1 per cent respectively.Bungoma, Mandera, Kericho, Nyandarua, Machakos, and Lamu, had lower percentages at 36.7 per cent, 32.7 per cent, 30.8 per cent, 27.1 per cent, 26.3 per cent and 20.7 per cent respectively.According to the latest report from the Controller of Budget, a substantial proportion of the revenue was from the health facility improvement fund FIF collections. Counties make money from different charges including land rates, parking fees, markets, billboards and advertisements, liquor, plans and inspections, unified business permits, house rents and other incomes.
The aggregate budget for FY 2023/24 for the devolved units was Kshs 563.53 billion, with 36 per cent allocated to development expenditure and 64 per cent to recurrent expenditure.
The county governments’ recurrent expenditure during the period amounted to KShs. 229.18 billion, an improvement of 9.2 per cent compared to a similar period in FY 2022/23. The expenditure included KShs. 146.53 billion (63.9 per cent) for personnel emoluments and Kshs 82.65 billion (36.1 per cent) for operations and maintenance.
The counties that achieved higher overall absorption rates of their respective approved annual budgets were Uasin Gishu at 59.9 per cent, Kitui at 59.8 per cent, Narok at 58.8 per cent, Bomet at 58.6 per cent, Nandi at 57.9 per cent, and Isiolo at 57.5 per cent. Garissa, Kisumu, Migori, Siaya, Bungoma, and Kisii recorded the lowest aggregate absorption rates at 43.5 per cent, 43.1 per cent, 42.9 per cent, 42.8 per cent, 38.3 per cent and 37.3 per cent respectively.
“High expenditure on personnel emoluments, use of commercial bank accounts, underperformance in own-source revenue collection and a high level of pending bills and a weak budgetary control hindered effective budget execution,” Margaret Nyakang’o, Controller of Budget noted in the report.
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