Editorials

Grow county revenues

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Controller of Budget Margaret Nyakang’o. FILE PHOTO | NMG

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Summary

  • A report by the Controller of Budget indicates that the revenue collections in the 47 counties dropped by a combined Sh2 billion in the nine months to March.
  • This has been largely blamed on the Covid-19 pandemic that has hit various sectors of the economy and paralysed business.
  • Counties can do far much better in revenue collections if they apply ingenious ways to meet their set targets.

A report by the Controller of Budget indicates that the revenue collections in the 47 counties dropped by a combined Sh2 billion in the nine months to March.

This has been largely blamed on the Covid-19 pandemic that has hit various sectors of the economy and paralysed business.

While it is quite understandable the adverse effects the pandemic has had on the economy, counties can do far much better in revenue collections if they apply ingenious ways to meet their set targets.

Coronavirus has just exposed the soft underbelly of the counties’ economies. Even without taking into account the negative effects of the pandemic, most of the devolved units have always failed to meet their revenue targets, with many of them relying on the national government allocations.

This situation needs to change if they are to meet the purpose for which they were created.

Counties have huge a potential and with diversified economies, right leadership and appropriate policies, they can transform into viable entities. If they will perennially perform below par in revenue collections, they risk turning into a threat to national economy.