In her latest County Governments Budget Implementation Review Report, the Controller of Budget (CoB) underscores the significant gap between ambitious revenue targets and actual collections. For example, Nairobi set a target of KSh 20 billion but has only raised KSh 2.1 billion. Kiambu aimed for KSh 5.8 billion but collected just KSh 832.9 million, while Narok’s target of KSh 4.8 billion resulted in only KSh 2.9 billion in revenue. Other counties, including Mombasa, Kisumu, and Machakos, have similarly failed to meet their revenue goals, with collections falling far short of expectations
A new report reveals that county governments across Kenya are falling short of their own-source revenue (OSR) targets, with several devolved units unable to meet their set financial goals. The Controller of Budget (CoB) in her latest County Governments Budget Implementation Review Report highlights the gap between ambitious revenue expectations and actual collections.
The report aims to inform Parliament, County Assemblies, the Executive branch of County Governments, and the public on budget implementation and the effective management of public funds. According to the findings, several counties set high revenue targets but have made little progress in achieving them.
Nairobi, for instance, had targeted a collection of KSh 20 billion but has only raised KSh 2.1 billion. Kiambu, with a target of KSh 5.8 billion, has managed to collect just KSh 832.9 million, while Narok’s target of KSh 4.8 billion has resulted in only KSh 2.9 billion collected. Other counties like Mombasa, Kisumu, and Machakos have similarly missed their targets by wide margins, with collections falling well below expectations.
Mombasa aimed for KSh 4.7 billion but gathered only KSh 832.1 million, while Kisumu had hoped to raise KSh 2.8 billion but secured just KSh 259 million. The County of Machakos, led by Wavinya Ndeti, aimed to collect KSh 2.7 billion but has managed a meagre KSh 287.4 million. Other counties such as Nakuru, Kilifi, Kakamega, and Uasin Gishu also reported similarly low revenue collections compared to their targets.
In the report, CoB Dr Margaret Nyakang’o notes that some counties have significantly underperformed. For instance, Kajiado set a target of KSh 1.2 billion but only collected KSh 143.9 million. Bungoma aimed for KSh 1.19 billion but secured only KSh 189.2 million, while Makueni, which had hoped to collect KSh 878.3 million, only raised KSh 165.1 million. Many other counties such as Laikipia, Nyeri, and Murang’a also failed to meet their goals, with collections falling short of expectations.
On the other end of the spectrum, counties like Tana River, Narok, and Samburu have managed to achieve a higher percentage of their annual targets, with Tana River reaching 81% of its target. However, counties such as Marsabit, Kajiado, and Nyamira are performing at less than 10% of their goals, which could pose challenges to their financial sustainability.
The Controller of Budget has recommended that counties conduct assessments using the Tax Administration Diagnostic Assessment Tool (TADAT) to evaluate their revenue potential. Based on these assessments, counties should develop a Revenue Enhancement Action Plan (REAP) to improve their revenue performance over time.
The CoB also advises counties to set realistic and attainable revenue targets based on performance and implement austerity measures to align expenditures with available resources. This approach, including adjustments through Supplementary Budgets, is expected to reduce the risk of accumulating pending bills and improve financial discipline.
