Counties failed to reach own source of revenue
All the 47 counties collectively generated a meagre Sh28.04 billion from their own sources during the first nine months of the 2019/20 financial year, less than half of the annual target of Sh57.8 billion.
Controller of Budget (CoB) Margaret Nyakang’o says in her first annual report that counties underperformed during the period with revenue collection going down slightly considering that in the 2018/19 financial year, counties generated Sh28.92 billion.
Analysis of own source revenue as a proportion of the annual revenue target indicates that Tana River, Samburu and Uasin Gishu achieved the highest proportions at 96.1 per cent, 76.8 per cent and 73.4 per cent respectively.
“Conversely, counties that recorded the lowest proportion of own source revenue against annual targets were Trans Nzoia at 30.2 per cent, Kajiado at 29.6 per cent, and Nandi at 27.9 per cent,” Nyakang’o says in her report.
The total funds availed to the County Governments in the first nine months of the FY 2019/20 amounted to Sh286.7 billion.
The amount consisted of Sh196.23 billion as equitable share of revenue raised nationally, Sh11.10 billion as conditional grants disbursed by the National Treasury, Kshs.51.33 billion cash balance from FY 2018/19, and Sh28.04 billion raised from own sources.
The report also highlights the status of budget implementation by each of the 47 County Governments.
The approved aggregate budget estimates for the 47 County governments in FY 2019/20 was Sh498.95 billion and comprised Sh198.85 billion (39.9 per cent) allocated to development expenditure and Sh300.01 billion (60.1 per cent) for recurrent expenditure.
In order to finance the budgets, county governments expected to receive Sh316.5 billion as equitable share of revenue raised nationally, Sh22.9 billion as total conditional grants from the National Government, Sh39.09 billion as total loans and grants from Development Partners, generate Sh57.82 billion from own revenue sources, and utilise Sh51.33 billion cash balance from 2018/19 financial year.
In the first nine months of the 2019/20 financial year the CoB authorised withdrawals of Sh252.10 billion from the County Revenue Funds to County Operational Accounts of the County Governments for budget execution.
The total expenditure by County governments in the first nine months 2019/20 was Sh241.6 billion.