A new report by Controller of Budget (CoB) Margaret Nyakang’o has ranked Kenya’s counties on their performance in collecting own-source revenue (OSR) in the first quarter of the 2024/25 fiscal year. The report highlights stark contrasts in revenue mobilization, with some counties achieving impressive milestones and others struggling to meet even a fraction of their targets.
Top Performers in Revenue Collection
The report identifies Tana River, Narok, Samburu, Garissa, and Elgeyo Marakwet as the best-performing counties. Tana River emerged as the leader, achieving 81% of its annual revenue target by collecting Ksh 78.50 million out of the expected Ksh 96.63 million. Governor Godhana Dhadho’s administration has attributed this success to enhanced revenue collection strategies and streamlined administration.
Narok County followed closely, raising Ksh 2.98 billion, representing 60% of its annual target of Ksh 4.97 billion. Samburu, Garissa, and Elgeyo Marakwet recorded collection rates of 36%, 27%, and 26% respectively.
Other notable performers include Wajir (23%), Turkana (21%), Kitui (19%), and Meru (18%). Counties such as Kirinyaga, Makueni, Laikipia, Nakuru, Kakamega, Mombasa, and Murang’a also performed relatively well, collecting between 14% and 18% of their annual targets.
Counties Struggling at the Bottom
At the other end of the spectrum, Marsabit, Kajiado, and Nyamira were among the poorest performers, collecting only 9% of their annual revenue targets. Marsabit collected Ksh 33.16 million against a target of Ksh 356.11 million, Kajiado raised Ksh 143.9 million out of Ksh 1.57 billion, and Nyamira collected Ksh 70 million against a Ksh 800 million target.
Other counties that struggled include Bungoma, Machakos, and Kericho (8%), Kisumu (7%), and Bomet (6%). Collectively, the worst-performing counties have highlighted gaps in revenue collection systems and administrative inefficiencies.
Additional underperformers included Kiambu, Busia, and Kwale (10% each), as well as Nairobi and Uasin Gishu (11% each).
National Overview
Across the country, counties collectively generated Ksh 12.67 billion in OSR during the first quarter, meeting just 15% of the cumulative annual target of Ksh 85.22 billion. This shortfall has created budget gaps that could hinder the execution of planned projects and activities in many counties.
“The underperformance has resulted in budget shortfalls, thereby impeding the full execution of planned activities,” Nyakang’o stated in her report.
Recommendations for Improvement
To address these challenges, the Controller of Budget has urged counties to strengthen their revenue collection mechanisms. Key recommendations include:
- Improved Revenue Administration: Streamlining collection systems to reduce inefficiencies and leakages.
- Innovative Revenue Mobilization: Exploring untapped revenue streams to expand the tax base.
- Realistic Target Setting: Adjusting annual targets to reflect achievable goals, especially for counties struggling to meet their benchmarks.
- Development of Revenue Enhancement Action Plans (REAPs): Tailored strategies to boost collections sustainably.
Nyakang’o also emphasized the need for counties to adopt austerity measures to align expenditures with available resources and ensure financial sustainability.
A Call to Action
As counties work to meet their revenue targets, the report underscores the importance of robust governance, strategic planning, and innovation in resource mobilization. The disparities in performance call for tailored solutions that address unique challenges in each county while building on the successes of top-performing regions.
In the face of these findings, county governments are now under pressure to reassess their approaches to revenue collection to not only meet targets but also deliver on their mandates effectively.
