Counties mark a decade with underperforming own-source revenues

GRAPHIC | STANSLAUS MANTHI | NMG

Counties received Sh399.6 billion in equitable share of revenues from the national government, marking the first year the devolved units have received all of their dues before the year ends.

Data from the Treasury show that the 47 devolved units, which turned 10 this year, received Sh29.6 billion more compared to the previous year.

While the national government has met its side of the bargain, the counties continue to underperform on own-source revenues.

According to the Office of Controller of Budget (OCOB), the devolved units’ performance on their own source revenue relative to target has been falling since the year ending June 2020.

Own-source revenue for the year ending June 2022 was recorded at Sh35.9 billion, representing 59 percent of the targeted Sh60.4 billion.

The poor performance of own-source revenue has led to an over-dependence on the national government, sometimes leading to paralysis in counties when funds delay.

Devolved functions such as health have suffered as a result of failure to meet the financial demands of doctors, nurses and other players in the sector.

The counties were created under the 2010 Constitution and started operations in 2013.

They have been criticised for plundering funds and wastage of resources that would have otherwise been used for devolved purposes.

Counties have also been in the spotlight for their soaring unpaid bills that hit a record Sh159.7 billion in March 2022 from Sh34.5 billion in June 2019.

According to the Controller of Budget, counties’ expenditure on development projects in the financial year that ended in June 2022 stood at Sh98.4 billion, representing only a quarter of their total expenditure.

Personnel emoluments guzzled 47 percent (Sh190.1 billion) as operation and maintenance accounted for 28 percent of the total spend.

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