The Controller of Budget (CoB) has revealed that 10 counties outperformed their annual revenue targets even as the national government faces challenges in providing an equitable share.
During the period, county governments generated a total of Ksh58.95 billion from their own source revenue (OSR), which was 72.8 per cent of the annual target of Kshs.80.94 billion.
The realized OSR is an improvement compared to Ksh37.81 billion generated in FY 2022/23.
Turkana led the list of counties that outperformed their targets at 241.2 per cent followed by Vihiga at 136.3 per cent. Kirinyaga came in second at 118.4 per cent and while Lamu wrapped up the top four counties at 116.2 per cent.
Others include Nandi at 113 per cent, Wajir at 110 per cent, Garissa at 108.2 per cent, Nyeri at 106.1 per cent, Samburu at 104.1 per cent, and Murang’a at 100.2 per cent.
Counties That Exceeded Own Source of Revenue
Turkana had a target of Ksh 220,000,000 but collected Ksh 530,645,056 from Own Source of Revenue.
Counties That Were Below Their Targets
County governments which recorded low performance of own source revenue were Nyandarua at 42.1 per cent, Machakos at 46.5 per cent, and Mandera at 50.8 per cent.
Others are Nyamira at 53.8 per cent, Bungoma at 55.8 per cent, Kajiado at 56.1 per cent, and Busia at 56.9 of annual targets.
The Controller of Budget advised these counties to develop revenue enhancement strategies and set realistic and achievable targets in the next financial year to avoid accumulating pending bills in the coming financial year.
Funds for FY 2023/24 in County Govts
The total funds available to the County Governments in the FY 2023/24 amounted to Ksh.492.47 billion, comprised of Ksh.354.59 billion as the equitable share of revenue raised nationally.
Furthermore, it comprised of Ksh.42.96 billion cash balance from FY 2022/23, Ksh.58.95 billion raised from own revenue sources, and Ksh.35.97 billion as additional
allocations/conditional grants.
The combined County governments’ budgets approved by the County Assemblies amounted to Ksh562.75 billion.
Ksh189.93 billion (33.8 per cent) was allocated to development expenditures, while Kshs.372.82 billion (66.2 per cent) was allocated to recurrent expenditures.
The CoB stated that to finance their budgets, county governments anticipate receiving Ksh385.42 billion as their equitable share of nationally raised revenue.
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They also have to generate Ksh80.94 billion from local revenue sources and expect Ksh46.36 billion in additional allocations from the national government and development partners.
Additionally, counties will utilize Ksh42.96 billion in unspent cash from the previous financial year, along with Ksh7.07 billion from balances in their Special Purpose Accounts.
The target for own-source revenue includes Ksh18.28 billion from the Facility Improvement Fund and Appropriations in Aid.
Funds Released from the Consolidated Fund to the Counties
In the FY 2023/24, the Controller of Budget (COB) approved the transfer of Ksh354.59 billion as the equitable share of revenue raised nationally from the Consolidated Fund to the various County Revenue Funds (CRFs) per Article 206 (4) of the Constitution.
The transferred amount represented 92 per cent of the allocated equitable share of Ksh385.42 billion.
During the period, county governments received additional conditional grants, including Ksh6.19 billion from the World Bank for the Financing Locally Led Climate Action (FLLoCA) CCRG program, Ksh1.2 billion from the Government of Germany (KfW) for the same program, and Ksh6.17 billion for the National Agricultural Value Chain Development Project (NAVCDP).
Other grants include Ksh304.16 million for the National Agricultural and Rural Inclusive Growth Project (NARIGP), Ksh451 million as County Climate Institutional Support (CCIS) under FLLoCA, and Ksh58.41 million for the Agricultural Sector Development Support Programme Phase II (ASDSP II).
Additionally, counties received Ksh1.65 billion for the Kenya Emergency Locust Response Programme, Ksh160.96 million for the Kenya Livestock Commercialization Program, and Ksh1.02 billion for the Second Informal Settlements Improvement Project (KISIP II).
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