The Controller of Budget (CoB) has released an in-depth report on county finances for the first nine months of the 2023/24 financial year, revealing significant disparities in own-source revenue (OSR) collections across Kenya’s 47 counties.
The County Governments’ Budget Implementation Review Report highlights that county governments have collectively achieved only 51.3% of their annual OSR target, generating KSh 41.40 billion out of the projected KSh 80.78 billion. This figure represents an improvement from the KSh 28.77 billion collected during the same period in the previous fiscal year.
Own-source revenue, is defined by the county governance toolkit as receipts when the funds are received in the County Exchequer Account. OSR comprises funds directly collected from residents, complementing the equitable share allocated by the national government. The CoB’s analysis includes both actual OSR and Facility Improvement Financing/Appropriations in Aid (FIF/AIA) in calculating total county revenues.
The report identifies top performers in revenue collection, with twelve counties surpassing 75% of their annual targets. The CoB stated in the report,
“Analysis of own-source revenue as a proportion of the annual revenue target indicated that twelve counties achieved a performance of above 75% of the annual target, namely; Uasin Gishu, Samburu, Isiolo, Kirinyaga, Turkana, Nandi, Vihiga, Meru, Wajir, Narok, Nyeri, and Elgeyo-Marakwet.”
Best Performing Counties
| Counties | Revenue (Kshs) |
|---|---|
| Nairobi | 9,232,015,328 |
| Kiambu | 3,351,084,993 |
| Mombasa | 3,300,176,091 |
| Nakuru | 2,389,828,481 |
| Uasin Gishu | 1,090,822,709 |
| Machakos | 1,051,979,268 |
| Kisumu | 942,792,158 |
| Kakamega | 874,417,482 |
| Murang’a | 716,442,533 |
| Kisii | 699,661,915 |
Nairobi City County leads in absolute terms, collecting over KSh 9.2 billion, followed by Kiambu and Mombasa counties. However, the report also exposes significant underperformance in some regions, with Kericho, Nyandarua, Machakos, and Lamu achieving less than 31% of their annual targets.
Worst Performing Counties
| Counties | Revenue (Kshs) |
|---|---|
| Nyamira | 258,547,201 |
| Isiolo | 237,641,664 |
| Samburu | 232,299,041 |
| Elgeyo-Marakwet | 204,553,817 |
| Garissa | 153,521,614 |
| West Pokot | 123,100,584 |
| Wajir | 116,917,585 |
| Mandera | 110,120,481 |
| Lamu | 72,616,911 |
| Tana River | 53,065,870 |
The data reveals a stark economic divide, with the lowest-performing counties, such as Tana River and Lamu, collecting less than KSh 100 million each. This disparity aligns with a separate National Treasury report highlighting the concentration of economic activity in and around the capital. In the CoB report,
“The Controller of Budget advises the county governments that recorded performance below 50 per cent of their annual target to control budget commitments to avoid accumulating pending bills in the coming financial year.”
