Siaya County posts lowest performance in own-source revenue
Siaya County posts lowest performance in own-source revenue
Siaya County recorded the lowest own-source revenue (OSR) performance among all counties in the 2024/2025 financial year, the Controller of Budget (CoB) has reported.
The county, led by Governor James Orengo, managed to collect only 47 per cent of its revenue target. During the period, Siaya generated Sh436.68 million, over two-thirds of which came from the hospital’s Facility Improvement Fund (FIF).
Revenue from single business permits was the largest contributor, bringing in Sh90.6 million, followed by other sources at Sh55.8 million (8 per cent), and market fees at Sh34.69 million (5 per cent).
Compared to the previous year, this represented a modest 2 per cent growth from Sh427.97 million collected in 2023/2024.
The CoB explained that the county’s OSR accounted for only 6 per cent of the national equitable share allocated.
Other counties with low OSR included Nairobi (66 per cent), Kajiado (55 per cent), Machakos (56 per cent), Isiolo (58 per cent), Taita Taveta (64 per cent), Bungoma, Kisumu, and Kakamega at 65 per cent each.
Overall, counties fell short of the Sh87.67 billion OSR target by 23 per cent, restricting their ability to implement planned programmes.
The CoB warned that low local revenue collections are a major obstacle to effective budget execution.
“Underperformance in OSR collection indicates that county governments could not implement all planned activities due to budget deficits,” the report said.
CoB Margaret Nyakang’o urged counties to strengthen revenue collection strategies and set practical targets for 2025/2026.
She highlighted that heavy dependence on hospitals, which make up a large portion of revenue, coupled with arrears of Sh124.95 billion, is intensifying financial pressure.
In contrast, 12 counties exceeded their OSR targets. Kisii collected Sh982.09 million (178 per cent), followed by Tana River (133 per cent), Mandera and Wajir (123 per cent), Kirinyaga (122 per cent), Garissa (120 per cent), Vihiga (117 per cent), and Samburu (110 per cent).
Meru (106 per cent), Elgeyo-Marakwet (104 per cent), Homa Bay (101 per cent), and Turkana (100 per cent) also performed well.
Safaricom announces M-Pesa scheduled system maintenance
Chaos as goons disrupt DAP-K aspirant’s presser in Malava by-election
How MCAs pocketed Ksh1.5 billion on sitting allowance, CoB report
KMTC issues update on release of June-July qualifying exams (DETAILS)
The report attributed strong performances to factors such as under-budgeting or no inclusion of FIF in plans, new revenue streams like gypsum in Tana River, and tourism in Samburu.
The automation of revenue systems and improved infrastructure also contributed to higher collections. Counties showing improvement were encouraged to raise their targets for 2025/2026.
The CoB reminded counties that under Article 209(3) of the Constitution, they may raise funds through property rates, entertainment taxes, and other taxes approved by Parliament to complement national allocations.
Despite this, OSR performance remains a challenge across counties, contributing to the growth of pending bills.
By June 30, 2025, pending bills across counties had risen to Sh176.80 billion, with more than half under three years old. Revenue arrears totalled Sh1.57 trillion, including ordinary OSR arrears of Sh112.14 billion (90 per cent), FIF-related arrears of Sh12.47 billion (10 per cent), and other arrears of Sh331.3 million.
Development spending was also low, with 23 counties failing to reach the minimum 30 per cent threshold.
Seven counties – Nandi, Trans Nzoia, Narok, Meru, Kericho, Mandera, and Kirinyaga accounted for nearly Sh22 billion of the total development expenditure. Nandi led with 90 per cent absorption, followed by Trans Nzoia (77 per cent), Narok (74 per cent), Meru (73 per cent), and Kericho, Mandera, and Kirinyaga at 72 per cent each.
Raila account hacked to endorse cryptocurrency
NPSC announces recruitment of 10,000 police officers (DETAILS)
Nairobi, Machakos among top counties flagged for blowing billions in travel expenditure
Nairobi MPs protest upcoming KDF recruitment
UK government warns its citizens against traveling to certain parts of Kenya
Follow us
