Governors have reiterated their threats to shut down counties within a week due to the delay by the National Government to release the Equitable Share of Revenue.
Chairperson of the Council of Governors Committee on Finance, Planning and Economic Affairs Governor Fernandes Barasa said the National Treasury is yet to release funds for the period between March and May 2023 amounting to Shs94.4 billion.
“As Governors, we will be meeting next week to assess the possibility to shut down counties. The National Treasury has reneged on the promise for timely release of funds and ensures full absorption by counties.” The governor stated.
“The Council of Governors will meet next week to reassess the position of shutting down counties,” Barasa added while speaking during a ceremony to fete county revenue officers for realizing enhanced collections in the last Financial Year.
Moreover, the Kakamega governor said they need to produce a reliable & predictable method for timely release of funds in the next financial year, adding that most counties are expanding their own revenue sources.
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In the one year to June 30, 2022, county governments collected Sh35.9 billion against a total set target of Sh60.4 billion representing 59.4 percent.
Furthermore, Barasa reported that Kakamega County collected Sh1.2billion against the set target of Sh1.8billion, adding that a higher target of Sh2billion will be realized.
“The commission for revenue allocation has assessed counties own potential to stand at over Sh300billion with Kakamega’s share being Sh5.8billion,” he added.
Nonetheless, the leading sources of revenue for county governments include land rates, single business permits, parking fees, building permits, and fees from billboards and advertisements.
Other are county housing rent, fines, penalties, and forfeitures, environment and conservancy administration fees, and game reserve fees.
According to the stipulated laws, counties can also impose charges for any services they provide.