Coun­ties’ in­come from busi­ness per­mits, rates rises 54pc

Business Daily (Kenya) - - TOP NEWS - Lynet Igad­wah lig­ad­[email protected]­tion­media.com

Coun­ties own rev­enue col­lec­tion from items like park­ing fees, busi­ness per­mits and land rates rose 54 per­cent or Sh2.6 bil­lion in the three months to Septem­ber as the de­volved units em­braced au­to­ma­tion to avert pil­fer­age.

The 47 de­volved units col­lected Sh7.41 bil­lion in the re­view pe­riod com­pared to Sh4.82 bil­lion in a sim­i­lar pe­riod a year ear­lier, data by the Con­troller of Bud­get shows.

More coun­ties have over the re­cent past moved to au­to­mate their ma­jor rev­enue streams to stop theft of pub­lic re­sources that is ram­pant with the man­ual pay­ment sys­tems.

"Dur­ing the re­port­ing pe­riod, coun­ties gen­er­ated a to­tal of Sh7.41 bil­lion, which was 14.8 per­cent of the Sh50.06 bil­lion an­nual tar­get. This was an in­crease of 55 per­cent com­pared to Sh4.82 bil­lion gen­er­ated in a sim­i­lar pe­riod of FY 2017/18," said Con­troller of Bud­get Agnes Od­hi­ambo.

Coun­ties have since de­vo­lu­tion grap­pled with low own rev­enue col­lec­tions and rev­enue leaks that have made the de­volved units de­pen­dent on Trea­sury to meet their fi­nan­cial obli­ga­tions.

The 47 coun­ties col­lected Sh32.4 bil­lion in the year to June against a tar­get of Sh49.2 bil­lion.

This was a mar­ginal drop from Sh32.5 bil­lion in an ear­lier year that ended June 2017.

The low col­lec­tion and de­layed re­leases from the Trea­sury have seen coun­ties strug­gle to meet their fi­nan­cial obli­ga­tions in good time, lead­ing to an in­crease in pend­ing bills. This has led to projects stalling, de­layed work­ers’ salaries and frozen pay­ments to sup­pli­ers, slow­ing down op­er­a­tions in the re­gional gov­ern­ments. Coun­ties such as Nairobi, Narok, Kakamega, Kisii, Ki­ambu and Meru have au­to­mated their rev­enue col­lec­tion sys­tems to plug rev­enue loop­holes, thus boost­ing lo­cal col­lec­tion.

Taita Taveta in­creased its rev­enues more than four times (323 per­cent) record­ing the big­gest leap in the re­view pe­riod fol­lowed by Ka­ji­ado (189 per­cent), Mu­rang’a (148 per­cent) and Embu (135 per­cent). On the flip­side, Mom­basa, Keri­cho and Homa Bay, in­ter­nally gen­er­ated rev­enue dipped by Sh9.2 mil­lion, Sh1.16 mil­lion and Sh1.06 mil­lion re­spec­tively. In ab­so­lute terms, Nairobi gen­er­ated the high­est amount of own source rev­enue at Sh1.79 bil­lion, fol­lowed by Narok and Nakuru at Sh1.19 bil­lion and Sh543.56 mil­lion re­spec­tively.

Wa­jir, Tana River, and Lamu gen­er­ated the low­est amounts at Sh12.69 mil­lion, Sh9.52 mil­lion and Sh6.35 mil­lion re­spec­tively.

Coun­ties get their rev­enue from mar­ket and trade li­cens­ing fees, park­ing fees, land rates, liquor li­cens­ing, county parks, beaches and pub­lic ceme­ter­ies.

They also con­trol li­cens­ing of do­mes­tic an­i­mals and casi­nos.

-FILE

Nairobi County head­quar­ters.

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