Counties must reform revenue systems

The reality is that an overreliance on national disbursements, often subject to delays, leaves counties exposed to financial uncertainty. Delays in the release of funds from the National Treasury disrupt critical projects, affect staff remuneration and cause accumulation of pending bills.

In many cases, counties find themselves committing to budgets based on projected national allocations and OSR targets that may not materialise due to a variety of constraints. The result is delayed development, frustrated service delivery and weakened public confidence.

A common misconception is that increasing revenue requires additional financial burden on citizens through higher taxes or levies. Yet, the real opportunity lies in reforming revenue collection systems to ensure efficiency, transparency and accountability.

By sealing leakages, embracing digital systems and expanding the revenue base through innovation and formalisation, counties can increase their revenue without raising rates.

In Kiambu, we have undertaken deliberate efforts to make this a reality. While we continue to learn and improve, technology has played a transformative role in our approach to revenue collection.

The adoption of an Enterprise Resource Planning (ERP) system has allowed us to digitise county services, streamline processes and improve transparency in collections. By doing so, we have created a more efficient, citizen-friendly environment where services are easier to access and revenue flows are easier to monitor.

The results over the past three years have been encouraging. In the financial year 2021/2022, our OSR stood at Sh 2.9 billion. This rose to Sh3.6 billion in 2022/2023, then to Sh4.58 billion in 2023/2024. In the current financial year 2024/2025, we have already realised Sh 5.4 billion.

This growth was achieved not by increasing rates, but by improving compliance, simplifying payment processes and in some cases, reducing financial pressure on residents.

A case in point is our decision to reduce land rates from 0.25% to 0.15% of the unimproved site value, a strategic move aimed at boosting compliance and economic activity, particularly among small enterprises.

However, efficient revenue collection is only one part of the equation. The true test of financial stewardship lies in how these funds are used. When citizens see their taxes translating into real, visible and meaningful development, their confidence in governance grows along with their willingness to comply.

In the last two years, we have constructed 312 Early Childhood Development Education (ECDE) centres across the county, introduced feeding programme to our ECDEs going children, increased the bursary fund programme from Sh100 million to Sh500 million, constructed six Level Four hospitals, 26 Level Three hospitals, commissioned 17 X-ray machines and 25 ultrasound machines amoing other equipment in our hospitals.

“Angaza Kiambu”, where we are doing a solar streetlights project that has improved safety and reduced energy costs across the county, is another successful story.

In the agriculture sector, we have given for fertiliser, certified seeds, improved “kienyenji” chicken and piglets to over 700, 000 farmers free of charge.

These outcomes have been possible through fiscal discipline, prioritisation and a strong belief in the potential of OSR as a tool for transformation. The experience so far reinforces the idea that counties can achieve significant progress through strategic planning and prudent financial management.

The writer is the Governor of Kiambu