EDITORIAL: Counties must improve their revenue collection

Counties must ensure that they strive to meet their financial targets. FILE PHOTO | NMG

What you need to know:

  • It is worrying that the devolved units have only managed to raise 41.4 per cent of the targeted amount in the nine months to March.

When the devolved system of governance was entrenched in the 2010 Constitution, the ultimate goal was to make the units financially independent in the long run.

Hence when the devolved structures became operational after the 2013 General Election, it was hoped that they would soon be weaned off their heavy reliance on funding from the national government for almost all their financial needs.

It is therefore worrying that the devolved units have only managed to raise 41.4 per cent of the targeted amount in the nine months to March.

According to the National Treasury, revenue collection by the county governments  dropped by Sh1.2 billion in the nine months to March compared to a similar period in the last financial year.

The 47 county governments collected a total ofSh24.7 billion between July 2016 and March this year compared to Sh25.9 billion the previous financial year. Only 20 counties reported growth in revenue collection compared to the previous year. We aver that the shortfall in county revenue collections is a bad sign for the national budget.

This is because the dip in revenue collection by the devolved units means more dependence on the national government.

The county governments should tighten revenue collection loopholes, which have seen them bleed billions of shillings. They should also scale up efforts to attract new businesses to beef up their coffers.

Devolution was rolled out so as to ensure that key services reached millions of Kenyans at the grassroots.

But what we have seen is county leaders dipping their fingers into the public funds’ trough by focusing on their personal enrichment and frivolous expenditure instead of improving the general welfare of the residents.

Going forward, the county units must ensure that they strive to meet their financial targets.

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Note: The results are not exact but very close to the actual.