Controller of Budget Margaret Nyakango and Council of Governors Chairperson Ahmed Abdullahi in a conversation on the sidelines of the Institute of Certified Secretaries Conference at Pride Inn Paradise in Mombasa on April 24, 2025.
Counties have grown their revenues by Sh26 billion in the year to June 2025, recording a growth of nearly two-thirds as automation of systems boosts collections.
The 47 counties generated Sh67.3 billion in own source revenues (OSR) during the year, up from Sh41.4 billion in the year to June 2024, the Controller of Budget (CoB) reported.
The 62.6 per cent growth in OSR was marked as 10 counties overshot their local revenue targets, collecting up to 78 per cent higher.
Surpassed local revenue targets
“During the reporting period, county governments generated a total of Sh67.3 billion from their OSR, which was 77 percent of the annual target of Sh87.67 billion. The realised OSR is an increase compared to the Sh41.4 billion generated in a similar period in the financial year 2023/24,” said CoB Margaret Nyakang’o.
Counties that surpassed their local revenue targets are Kisii which had targeted to collect Sh865 million but raised Sh1.54 billion, Tana River which planned to collect Sh153.1 million but raised Sh203.2 million, and Kirinyaga which surpassed its target of Sh648 million to collect Sh794 million.
Mandera and Wajir both grew their revenues by 23 per cent and were followed by Garissa (20 per cent), Vihiga (17 per cent), Samburu (10 per cent), Meru (six per cent), Elgeyo Marakwet (four per cent) and Homa Bay (1 per cent).
“This increase was attributed to various factors like underbudgeting, a complete lack of budgeting for the Facility Improvement Fund, revamped revenue streams and increased automation of revenue collection processes,” said Dr Nyakang’o.
Sealed revenue loopholes
Many counties have overhauled their revenue systems following training and advice by the Commission on Revenue Allocation, with automation of collections following the launch of payments through the e-Citizen having sealed revenue loopholes for counties.
The CoB, however, blames some counties for setting targets below their OSR potential, which ends up creating the impression that they are performing well. While many counties continue to collect below their OSR targets, actual collections have been growing over the years, rising from Sh35.9 billion three years ago.
Among counties that performed poorly are Nairobi which collected Sh13.19 billion out of a target of Sh20.06 billion, Kakamega which collected Sh1.4 billion out of a target of Sh2.2 billion and Kisumu whose collection of Sh2.46 billion was below a target of Sh3.8 billion.
OSR accounted for 12.6 percent of the Sh533.1 billion funding that the counties received during the year.
