The majority of counties are yet to achieve their own-source revenue targets according to the latest report by the National Treasury.
Only four of the 47 counties met their targets in the fiscal year that concluded in June 2023, underscoring the devolved entities’ ongoing failure to perform well in terms of revenue collection.
Only Baringo, Homabay, Kitui, and Lamu met their targets, according to data released by the Treasury, with coastal counties achieving 119 percent relative to the target.
The combined revenue hit Sh37.8 billion, representing a 60.8 percent score relative to the targeted Sh62.1 billion.
The collection represents a Sh1.9 billion increase from the Sh35.9 billion collected in the previous year.
The slow growth in revenue and a huge deviation from the target means counties will keep relying on the government for funding to meet their spending obligations.
During the year under review, the national government wired Sh399.6 billion to counties, making it the first year the units received their due cash before the end of the financial year.
Despite the low score, total collections relative to target increased slightly from the 59 percent recorded in the year ending June 2022, reversing three consecutive years of continuous decline.
With the national government meeting its side of the bargain, the focus now shifts to own source revenue performance for the units which were meant primarily to empower Kenyans from the micro-level.
According to the data, Marsabit County which collected Sh59 million last year, was the worst performer only managing slightly over a third of its target, followed by Murang’a which managed a 35.6 percent score of the Sh1.5 billion target.
Nairobi, which makes about 25% of the nation’s GDP, increased its receipts from Sh9.2 billion last year to Sh10.2 billion this year.
The counties have been under a lot of scrutiny for their spending habits, which during a difficult economic period resulted in enormous misappropriation of public monies.
The budget controller reports that they spent Sh98.4 billion on development for the fiscal year that ended in June 2022, representing only a quarter of their total expenditure.